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savings bonds - All posts tagged savings bonds

  • Sep 29, 2011
    10:24 AM ET

    Better Than Checking? Try Savings Bonds

    iStockphoto

    Consumers tired of low-yielding checking or savings accounts might want to consider those sleepy savings bonds typically associated with birthday or high school graduation gifts. But to get the best deals on them, they’ll need to act fast.

    Series I savings bonds are currently yielding 4.6%, well above the 0.39% average rate for a one-year certificate of deposit and the 0.15% for savings accounts and money market deposit accounts, according to Bankrate.com. But that rate, which is based on inflation, will be reset on Nov. 1 and some analysts expect it to come down to about 3.3%. Investors who buy the bonds before Nov. 1 can still lock in the 4.6% rate for at least six months. (Series I savings bond rates also have a fixed-rate component that lasts throughout the 30-year life of the bond. The fixed rate is currently 0% and is expected to stay there.)

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