Apr 5, 2008
Time to Buy Bonds Before Rates Drop? See Treasury Direct
For safety of your principal and protection against inflation, I Bonds from the U. S. Treasury are an excellent investment. They pay interest in two parts: A Fixed Rate, which lasts for the life of your bond, and an Inflation Rate, which is adjusted every six months to reflect inflation. If you open a Treasury Direct account, you can buy $5000 worth of these bonds for yourself, linked to your Social Security Number, and for others such as spouse or children. We will consider the advantages of Treasury Direct in more detail later. That said, you might not want to wait for that discussion before opening an account. The rates will change at the end of April. If you have ever wanted to buy such bonds, now might be the time to open your account. The Fixed Rate might well drop then, as well as the Inflation Rate. Rate Information. I Bonds. Treasury Direct.