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IRS I Bonds Program Loses Appeal

If you’re worried about inflation, I Bonds may not be the solution —at least not this year with interest rates so low.

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Last year, the Internal Revenue Service rolled out a program that lets you use your tax refund to buy inflation adjusted Series I Savings Bonds.

More than 99,000 bonds were bought using tax returns in 2010, for a total of $11 million, according to the IRS. But that was last tax season, when the rate on I Bonds was above 3%. Today they earn 0.74%.

With the fixed rate on I Bonds currently at zero, analysts say there are more appealing ways to hedge against inflation. “It’s definitely not as exciting and sexy to want to do it,” says Alex Matjanec, co-founder of MyBankTracker.com.

You may be better off sticking with a certificate of deposit, says Matjanec. For instance, a 12-month CD with Ally Bank currently pays 1.29%, he points out.

Other ways to save: you can sock the money away in a high yield savings account or a traditional IRA, where your money can grow tax free until you retire, says Greg McBride, senior financial analyst for Bankrate.com. American Express offers a high-yield savings account that yields 1.30% annually, says Matjanec.

The yields on I Bonds are determined by two rates: a fixed rate that lasts throughout the life of the bond, and an adjustable rate that is reset twice a year pegged to inflation. The fixed rate on these bonds won’t be reset until May, and would only apply to new bonds. So investors who use their tax returns to purchase I Bonds now will lock in a 0% fixed rate, meaning they will earn nothing above inflation. (Investors who wait beyond May aren’t likely to see much of an increase on the fixed rate, says McBride.)

And you may even find yourself outpaced by inflation if you redeem the bond within the first five years, says McBride, because that would cost you a penalty of three months worth of interest.

That said, there are some tax advantages to I Bonds because they aren’t subject to state or local taxes. And you don’t have to pay federal taxes until you redeem the bonds, which could be held for up to 30 years.

The IRS expanded the program this year to let taxpayers purchase I Bonds for other people, as well as themselves.

Readers, are you worried about inflation? What do you think is the best way to put your tax refund to work?

Corrections & Amplifications: A previous version incorrectly reported the yield on the American Express 12-month CD.

 

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    • By WebOsPublisher

      Handsome actor Kerwin Mathews appeared in many films during the 1950s and 1960s. Visit Brian’s Drive-In Theater for photos,biography and filmography information,and DVD and memorabilia sources for actor Kerwin Mathews.
      Kerwin Mathews at Brian’s Drive-In Theater
      Kerwin Mathews (1926-2007)
      Updated 4/2/2012 with more films available on DVD!
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      biography
      Born in Seattle, Washington, on January 8, 1926, Kerwin Mathews relocated to Janesville, Wisconsin, after his parents divorced. Following graduation from Benoit College where he majored in theater, Mathews worked as a teacher for several years but eventually quit and made his way to Hollywood. At 6’1″ and 180 lbs., the handsome hopeful snagged a contract with Columbia in 1954. His first film was the Guy Madison film noir vehicle 5 Against the House. Mathews went on to star in several more noir flicks but is probably best remembered for his roles in the swashbucklers The 7th Voyage of Sinbad (1958), The 3 Worlds of Gulliver (1960), and Jack the Giant Killer (1962).
      the films of kerwin mathews
      5 Against the House (1955)
      With Brian Keith, Guy Madison, Kim Novak, and Alvy Moore in the Columbia film noir release 5 Against the House, which was Mathews’ first film
      The Garment Jungle (1957)
      With Gia Scala in the Columbia film noir release The Garment Jungle
      The 7th Voyage of Sinbad (1958)
      With Kathryn Grant in Columbia’s swashbuckler The 7th Voyage of Sinbad. Ray Harryhausen was responsible for the special effects in this movie and also served as associate producer
      Tarawa Beachhead (1958)
      With Julie Adams in Columbia’s war film Tarawa Beachhead
      Man on a String (1959)
      From Columbia’s crime thriller Man on a String. LEFT: With Ernest Borgnine. RIGHT: Mathews as Bob Avery
      The Warrior Empress (1960)
      With Tina Louise in the Italian spectacle The Warrior Empress
      The 3 Worlds of Gulliver (1960)
      From The 3 Worlds of Gulliver. LEFT: Lobby card. CENTER and RIGHT: Mathews as Dr. Lemuel Gulliver. Ray Harryhausen did the special effects in this fantasy adventure
      Maniac (1963)
      With Nadia Gray in the Hammer horror thriller Maniac
      Battle Beneath the Earth (1967)
      Images from the sci-fi thriller Battle Beneath the Earth, released in the US by MGM
      The Viscount (1967)
      Images from the crime drama The Viscount, released in the US by Warner Bros.
      The Boy Who Cried Werewolf (1973)
      From Universal’s horror release The Boy Who Cried Werewolf. LEFT: With Scott Sealey. RIGHT: With Elaine Devry
      later years
      Late in his film career, Mathews acted in a number of horror and science fiction films, including Octaman (1971; with Jeff Morrow and Pier Angeli), The Boy Who Cried Werewolf (1973; with Elaine Devry), and Nightmare in Blood (1978; with Barrie Youngfellow). After the release of Nightmare in Blood, Mathews retired from acting to move to San Francisco and work as an antiques dealer. He passed away on July 5, 2007, in his sleep at age 81. He is survived by his partner of 46 years, Tom Nicoll.
      kerwin mathews films
      available from movies unlimited
      The Sinbad Collection [DVD] DVDThree-disc set includes “The 7th Voyage of Sinbad” (including an exclusive interview with Ray Harryhausen), “The Golden Voyage of Sinbad” and “Sinbad and the Eye of the Tiger.”
      The Fantastic Films Of Ray Harryhausen: Legendary Monster Series [DVD] DVDFive-disc set includes “The 3 Worlds of Gulliver,” “Jason and the Argonauts,” “The 7th Voyage of Sinbad,” “The Golden Voyage of Sinbad,” and “Sinbad and the Eye of the Tiger.”
      Columbia Pictures Film Noir Classics I [DVD] DVDA San Francisco detective traces a series of seemingly random killings to a sharp-eyed loner who uses his rifle to exact deadly revenge on the women who have rejected him, in “The Sniper” (1952). Adolphe Menjou, Arthur Franz, Gerald Mohr star. Four college pals plot to rob a casino in Reno just to prove it can be done, in “5 Against the House” (1955), but their plan to return the money is threatened when one of them intends to keep it for himself. Brian Keith, Guy Madison, Alvy Moore, Kim Novak star. Then, when a mother and her young daughter unknowingly destroy a stash of heroin, a pair of hit men must keep them alive long enough to explain it to their boss, in “The Lineup” (1958). With Eli Wallach, Robert Keith. Finally, “Murder by Contract” (1958) is a gritty, atmospheric drama starring Vince Edwards as a professional hit man hired to kill a woman who is about to turn in evidence against the seedy mobster he works for. Caprice Toriel, Phillip Pine, and Herschel Bernardi co-star. Also includes “The Big Heat” (1953). 7 hrs. total. Soundtrack: English; audio commentary; featurette.
      The Garment Jungle [DVD](1957) DVDHard-hitting film noir drama stars Kerwin Matthews as a Korean War veteran who tries to convince father Lee J. Cobb, the owner of a woman’s dress-making business, to steer clear of shifty union busters. The excellent supporting cast includes tough guys Richard Boone, Robert Loggia and Joseph Wiseman. 88 min. Widescreen (Enhanced); Soundtracks: English Dolby Digital mono, French Dolby Digital mono; Subtitles: English, French; theatrical trailer; featurettes.
      Tarawa Beachhead [DVD](1958) DVDA sergeant serving in Guadalcanal witnesses his superior officer murder another soldier in a corrupt bid for glory. Keeping silent for lack of proof, the marine later falls in love with the slain man’s widow, only to find her husband’s killer seducing her sister. Riveting World War II drama stars Kerwin Matthews, Julie Adams, and Ray Danton. 76 min. Widescreen; Soundtrack: English Dolby Digital mono.
      The 7th Voyage Of Sinbad (50th Anniversary Edition) [Blu-ray](1958)A much-requested film at Movies Unlimited, this spectacular fantasy follows Sinbad’s battle against an evil wizard who sends him on a dangerous quest. See the giant Cyclops, the two-headed roc, the snake-woman, and other menaces, courtesy of animator Ray Harryhausen. Kerwin Matthews, Kathryn Grant star. 88 min. Widescreen; Soundtracks: English Dolby Digital 5.1, French Dolby Digital 5.1, Spanish Dolby Digital 5.1, Thai Dolby Digital 5.1; Subtitles: English (SDH), French, Indonesian, Korean, Mandarin, Spanish, Thai.
      The 7th Voyage Of Sinbad (50th Anniversary Edition) [DVD](1958) DVDA much-requested film at Movies Unlimited, this spectacular fantasy follows Sinbad’s battle against an evil wizard who sends him on a dangerous quest. See the giant Cyclops, the two-headed roc, the snake-woman, and other menaces, courtesy of animator Ray Harryhausen. Kerwin Matthews, Kathryn Grant star. 88 min. Widescreen (Enhanced); Soundtracks: English Dolby Digital 5.1, Dolby Digital mono, French Dolby Digital 5.1; Subtitles: English, French; audio commentary by Harryhausen, others; featurettes; photo gallery; music video; interview.
      Man On A String [DVD](1960) DVDLoosely based on fact, this suspenseful thriller stars Ernest Borgnine as a Moscow-born U.S. citizen in the employ of Soviet spies. When the traitorous Borgnine-working as a Hollywood producer-is caught by the feds, he agrees to put his skills to use on behalf of American interests. Andre De Toth (“House of Wax”) directs; Kerwin Matthews, Colleen Dewhurst co-star. 93 min. Widescreen; Soundtrack: English Dolby Digital mono.
      The 3 Worlds Of Gulliver [DVD](1960) DVDRay Harryhausen’s special effects highlight this colorful adaptation of Jonathan Swift’s classic. Kerwin Matthews is the English adventurer who finds himself a giant in Lilliput, mouse-sized in Brobdingnag, and in danger wherever he goes. With Jo Morrow, Peter Bull. 98 min. Standard; Soundtrack: English Dolby Digital stereo, Spanish Dolby Digital stereo; Subtitles: English, French; filmographies; scene access; featurette; documentary; filmographies; theatrical trailers; interactive menus.
      The Devil At 4 O’Clock [DVD](1961) DVDCleric Spencer Tracy asks the governor of an exotic South Seas island if he can use a trio of convicts (Frank Sinatra, Gregoire Aslan and Bernie Hamilton) to help construct a chapel for a children’s hospital. When a volcano erupts, the cons help rescue the hospital’s young patients. Kerwin Matthews and Alexander Scourby also star in this mix of adventure and sentiment. 127 min. Widescreen (Enhanced); Soundtracks: English Dolby Digital stereo, Portuguese Dolby Digital stereo; Subtitles: English, French, Portuguese, Spanish; theatrical trailer.
      Icons Of Adventure [DVD] DVDFirst, the British East India Company sends the wrong man to deal with the murderous members of a Indian cult who are attacking travelers, in “The Stranglers of Bombay” (1960). Guy Rolfe, Jan Holden, George Pastell star. AKA: “Stranglers of Bengal.” Next, “The Terror of the Tongs” (1961) is what a ship’s captain experiences when he runs afoul of some killers in Hong Kong. Geoffrey Toone, Christopher Lee, Yvonne Monlaur star. AKA: “Terror of the Hatchet Men.” Then, in “The Pirates of Blood River” (1962), a young villager who has been exiled to a penal colony is forced to lead some no-good sea dogs back to his home in search of treasure. With Lee, Kerwin Mathews, Andrew Keir. Lastly, “The Devil-Ship Pirates” (1964) cause plenty of trouble for the locals after they arrive in a small British village. Lee, Barry Warren, John Cairney star. Two-disc set.
      Icons Of Suspense: Hammer Films [DVD] DVDChills and spills abound in this collection of Hammer Films thrillers. A teenage girl (Mandy Miller) suspects her stepfather (Peter Van Eyck) of killing her mother and making it look like a suicide, in “The Snorkel” (1958). “Stop Me Before I Kill” (1960) centers on a race car driver who suffers a head injury and begins having thoughts about strangling his wife. Claude Dauphin stars. AKA: “The Full Treatment,” “The Treatment.” “Never Take Candy from a Stranger” (1960) is about a family whose young daughter is molested by an elderly man. Gwen Watford stars. AKA: “Never Take Sweets from a Stranger.” Peter Cushing is a bank manager whose family is held hostage by a crook who wants access to the vault, in “Cash on Demand” (1961). A drifter (Kerwin Mathews) agrees to help a woman (Nadia Gray) break her murderous husband out of an insne asylum, in “Maniac” (1963). “These Are the Damned” (1963) tells of a group of children being held in isolation by a scientist (Alexander Knox) who’s told them their immunity to radiation makes them the future of humanity. With Macdonald Carey, Oliver Reed. AKA: “The Damned.” 9hrs. total on three discs. Widescreen (Enhanced); Soundtrack: English Dolby Digital stereo; Subtitles: English (SDH); theatrical trailers.
      Shadow Of Evil [DVD](1964) DVDProduced in the wake of the spy phenomenon that swept the world after “Dr. No,” this thriller features Kerwin Matthews as secret agent OSS 117, an operative sent to Thailand to stop the maniacal Dr. Sinn from conquering the world using a secret virus. Can he do it? Does James Bond like shaken martinis? With Robert Hossein, Pier Angeli.
      Battle Beneath The Earth (1967)/The Ultimate Warrior [DVD](1975) DVDFirst, in “Battle Beneath the Earth,” an insane Chinese general constructs an elaborate series of tunnels underneath America containing nuclear weapons that would be used to destroy the country. But when the Navy learns of the plan, military forces rush to avert catastrophe. Kerwin Mathews, Vivienne Ventura, Robert Ayres star. AKA: “Battle Beneath the Sea.” Then, set in a post-apocalyptic New York City, “The Ultimate Warrior” follows a heroic mercenary as he struggles to save the town’s population from the demented plans of a savage warlord. Yul Brenner, Max von Sydow, Joanna Miles star. AKA: “The Barony,” “The Last Warrior.” 185 min. total. Widescreen (Enhanced); Soundtrack: English Dolby Digital mono; Subtitles: English (SDH), Spanish.
      Octaman [DVD](1971) DVDThis revamping of “The Creature from the Black Lagoon” (directed and co-written by “Creature” scripter Harry Essex) features an eight-limbed, aquatic man-beast terrorizing explorers Kerwin Mathews and Pier Angeli in Mexico. Jeff Morrow co-stars; with early makeup work by Rick Baker.
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      filmography
      FILM
      Nightmare in Blood (1978) with Barrie Youngfellow; directed by John Stanley
      The Boy Who Cried Werewolf (1973) with Elaine Devry
      Octaman (1971) with Jeff Morrow, Pier Angeli, and Buck Kartalian
      Death Takes a Holiday (1971) with Yvette Mimieux, Myrna Loy, and Bert Convy
      Barquero (1970) with Lee Van Cleef, Mariette Hartley, Warren Oates, and Forrest Tucker
      A Boy… a Girl (1969) with Dean Paul Martin, Peggy Lipton, and Karen Steele; directed by John Derek
      A Darkness at Blaisedon (1968) with Louis Edmonds
      The Killer Likes Candy (1968) with Gordon Mitchell and Marilu Tolo
      Ghostbreakers (1967) with Kevin McCarthy, Diana Van der Vlis, Norman Fell, Larry Blyden, Richard Anderson, Michael Constantine, Margaret Hamilton, and Anne Jeffreys
      Battle Beneath the Earth (1967) with Peter Arne and Vivienne Ventura
      The Viscount (1967) with Edmond O’Brien and Fernando Rey
      Shadow of Evil (1966) with Pier Angeli
      OSS 17 (1963) with Nadia Sanders
      The Waltz King (1963) with Brian Aherne and Senta Berger
      Maniac (1963) with Nadia Gray
      The Pirates of Blood River (1962) with Christopher Lee, Glenn Corbett, Peter Arne, Oliver Reed, and Desmond Llewelyn
      Jack the Giant Killer (1962) with Anna Lee, Judi Meredith, and Roger Mobley
      The Devil at 4 O’Clock (1961) with Spencer Tracy, Frank Sinatra, Jean-Pierre Aumont, and Barbara Luna
      The Warrior Empress (1960) with Tina Louise and Elke Sommer
      The 3 Worlds of Gulliver (1960) with Lee Patterson and Jo Morrow
      Man on a String (1959) with Ernest Borgnine, Colleen Dewhurst, and Glenn Corbett
      The Last Blitzkrieg (1958) with Van Johnson, Dick York, and Brett Halsey
      The 7th Voyage of Sinbad (1958) with Kathryn Grant
      Tarawa Beachhead (1958) with Julie Adams, Ray Danton, Karen Sharpe, and William Boyett
      The Garment Jungle (1957) with Lee J. Cobb, Richard Boone, and Gia Scala
      5 Against the House (1955) with Guy Madison, William Conrad, Kim Novak, Brian Keith, and Alvy Moore
      TELEVISION GUEST APPEARANCES
      Ironside, episode Buddy, Can You Spare a Life?, originally aired November 16, 1972
      Ironside, episode Achilles’ Heel, originally aired February 17, 1972
      Goodyear Theatre, episode The Obenauf Story, originally aired March 30, 1959
      Matinee Theatre, episode The Suicide Club, originally aired February 25, 1958
      Matinee Theatre, episode Show of Strength, originally aired May 6, 1957
      Playhouse 90, episode The Country Husband, originally aired November 1, 1956
      The Ford Television Theatre, episode Catch at Straws, originally aired October 3, 1956
      The Ford Television Theatre, episode The Lady in the Wind, originally aired October 20, 1955
      The Ford Television Theatre, episode Charlie C Company, originally aired December 9, 1954
      Space Patrol, episode The Escape of Mr. Proteus, originally aired March 13, 1954
      Click on the logo to go back to Brian’s Drive-In Theater
      This page premiered September 9, 2003.
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    • Thank you amazing blog, do you have twitter, facebook or something similar where i can follow your blog

      Sandro Heckler

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