Of course, the reason they pay 6.73% is that inflation was up 5.73%. So basically I'll make an extra dollar on my savings, because I have to pay an extra five bucks every time I buy a tank of gas. So I guess I should really hope the interest rate plummets the next time the inflation adjustment is made, as that means my daily commute has become more affordable.
If blogs are the way the winds are blowing, let no one say that I do not blow. ''I have a ham radio.''
Wednesday, January 25, 2006
Financial tip o' the day: If you're looking for someplace safe for medium-term savings, you might want to know that I Bonds are paying 6.73% interest until April. No long-term guarantees as to the interest rate is adjusted semi-annually (they pay 1% plus the rate of inflation as calculated by the consumer price index), and furthermore you can't make a withdrawal for the first year, and withdrawals within five years are subject to a two-months-interest penalty. But still, this seems a good place to park some money you don't plan to need immediately (I keep the savings I budget for medical emergencies in I Bonds). And with a $25 minimum investment, one can start small.
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