i bonds

Savings Bonds as Interest-Earning Travelers Checks

Posted November 8, 2009 - 06:00 by Philip Brewer

Investment

Savings bonds

Remember travelers checks? In the days before ubiquitous automated teller machines, they were a useful product. You could use them almost like cash -- but you could carry more than you'd feel safe carrying in cash because if they were lost or stolen you could get them replaced. Well, savings bonds have all those features but one.

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I Bond rates go to zero

Posted May 2, 2008 - 06:47 by Philip Brewer

Personal Finance

Savings Bonds

Since 1998, the US Treasury has had a pretty good deal for small savers who were worried about inflation--the Series I Savings Bond.  The interest it paid was based on inflation plus an additional return that was set by the Treasury and fixed for the life of the bond.  On May 1st the Treasury announced the value of that fixed return for the next six months:  Zero.

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Savers suffering as rates fall--what to do

Posted April 4, 2008 - 05:33 by Philip Brewer

Investment

Federal funds rate and savings interest rates both drop

Interest rates for ordinary savers held up pretty well after the first Fed rate cut in July last year.  There was a simple reason--banks needed the money.  With the credit squeeze making it tough for banks to raise cash, the last thing they wanted was for savers to draw their money out in search of higher returns.  The Fed's efforts to relieve the squeeze have been somewhat successful--banks have substantially cut the rates they'll pay savers.

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