July’s Savings Bond investments dip to 20-year low

Monday, August 14th, 2006
Categorized as: Savings Bond investment rate

Total investments in Savings Bonds in July were $248.8 million, the lowest one-month total since November 1983, according to Stephen Meyerhardt, spokesperson for the Treasury’s Bureau of Public Debt.

This investment level once again shows investors’ sensitivity to the headline interest rate for Savings Bonds. Just six months ago, in January, Savings Bond investments were reached $1.5 billion, a 10-year high. At that time the headline rate for Series I bonds was 6.73% and 86% of new investments went into I bonds.

Now the headline rate for I bonds is 2.41% and Series I bond investments made up just 44.3% of the total. Nonetheless, because today’s I bonds have a higher base rate than January’s I bonds (1.4% vs 1.0%), they are a much better deal for long-term investors.

Readers of my book have access to an online graph showing the level of Savings Bond investments since Series I bonds were introduced in 1998. Check your Book Notes for the link.

Rate this post (1 to 5 stars): 1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

FDIC Insured Certificates of Deposit can pay 1 or 2% more than savings bonds when held for a similar length of time. See top CD Rates Below:

No comments yet.

Comments Closed

June 1, 2010

After six years, over 400 posts, 3,680 real comments, and over 90,000 spam comments (thank you, Akismet, for making managing a blog with comments possible), I am closing public comments on Savings-Bond-Advisor.com. I will contine to update the main articles on this site, but not the comments.

Virtually every question about Savings Bonds has been asked and answered on this site multiple times. Use the search feature (see the box in the gray area near the top of this page) or the detailed menu on the lower part of the home page to find the information you're looking for.

Tom Adams

Savings Bond Calculator



Help

Savings Bond
Questions

Get an answer to your questions from the Treasury's Savings Bonds team.

Click below to ask a question.

Ask the Treasury