I-Bonds are 6.73% interest rate - tax deferred
In my opinion I-Bonds are really the best investment you can make in today’s market. They will protect you from inflation. Since high rates of inflation is potential problem this is really the most secure investment you can make.
Series I bonds accrue earnings based on a combination of the fixed interest rate and the semiannual inflation rate. This composite rate reflects the combined effects of the fixed interest rate and the semiannual inflation rate. The government announces the composite rate each May and November
I-Bonds are exempted from State taxes and Federal tax on is deferred. I am always looking for the best investments and that’s the reason I recommend I-Bonds. If you talk to financial advisors they will most likely not recommend I-Bonds, because they don’t make commission on selling them.
If you want to purchase I-Bonds create account on Treasury Direct (http://www.treasurydirect.gov/global_login.htm).
There are no fees to purchase I Bonds. Only individuals can purchase them (no corporations).
JY said,
April 27, 2006 @ 2:33 pm
I Bonds are not an optimal investment choice right now. The rate is about to fall quite a bit. In this entry I discuss why they’re wrong, and the bad advice to “buy I Bonds immediately” from a national financial columnist.
http://bbaadd.com/blog/2006/04/finance-you-can-panic-now-or-panic.html