interest rates

I’m a day late with this info, but… The Treasury has announced the new Series I Savings Bond rates, effective May 1st, 2014. As a reminder, I-Bond rates are pegged to inflation estimates, though there is also a fixed component set by the Treasury. Rates are updated twice a year […]

Read the full article >>>

Redeem Older I-Bonds to Buy New Ones?

by Michael on Nov 6, 2013 · 2 comments

As a quick followup to my I-Bond rate update, I just wanted to point out that the Treasury surprised everyone (or at least me) by increasing the fixed rate last week. That’s the good news. The bad news is that they only increased it from 0% to 0.20%. Regardless, you […]

Read the full article >>>

Today I want to expand on my previous article about the relationship between interest rates and bond prices. You should now be well aware that interest rates and bond prices move in opposition. When rates fall, bond prices increase. And when rates increase, bond prices fall. But how big is […]

Read the full article >>>

Interest Rates and Bond Prices

by Michael on Jul 22, 2013 · 2 comments

The FINRA Investor Education Foundation recently released some troubling poll results about the “financial capability” of members of the American public. A key aspect of their poll, which was conducted in 2012 and followed a similar survey in 2009, was a five question quiz covering everyday aspects of finance and […]

Read the full article >>>

Series I Savings Bond Rate - May 2013

by Michael on May 1, 2013

The BLS has just released the March 2013 inflation numbers which mean that we can now predict the May 2013 I-Bond rate. As a reminder, I-Bond rates are pegged (in part) to inflation estimates, though there is also a fixed component set by the Treasury. The inflation component is variable […]

Read the full article >>>

Predicting I-Bond Interest Rates

by Michael on Apr 15, 2013

It’s no secret that I’m a big fan of Series I Savings Bonds. Each year, my wife and I each max out our annual I-Bond limits. Not only that, but we jump through hoops to get even more with our tax refund. It should thus come as no surprise that […]

Read the full article >>>

A reader named John recently asked about the wisdom of buying I-Bonds vs. using that money to make mortgage pre-payments. If I have a mortgage, would it not make sense to pre-pay it rather than buy I-Bonds? Or am I missing something? This is an excellent question. In fact, it’s […]

Read the full article >>>

Interest Rates and Unemployment

by Michael on Dec 13, 2012 · 2 comments

At long last, the Federal Reserve has finally given us a better indication of when we might expect interest rates to start to rise. As long as inflation remains low, we can expect the Fed to work to keep interest rates near zero at least until unemployment drops below 6.5%, […]

Read the full article >>>