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Invest money? I Bonds.  Who? Me? 
Where do I put it?
How much risk can I take?
One option is to  purchase United States Government "I Bonds"

This site is a compendium of  Information and Frequently  Asked Questions about I Bonds a secure Investment product.

The Current Rate on I Bonds is 4.28 % until April  2008.  Scan down to read about I Bonds on this Compendium page of Secure Financial Government Investments.
  

You are at: http://www.MoneyAndFinanceDirectories.com/I-Bonds/Investment-Security.html    ud 08/28/2009 06:57 PM -0500 Bookmark this page now!

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Directory of Video Sites
Blue Box 1 Scan Below

Click Brian Nelson's www.PartyTentCity.com for party tents, canopies and awnings. Today's Sale 26'x40' Tarp.   Silver. Regular price is $104.00. With this ad it is on sale for only $88.00. Shipping is $15. No charge for shipping if tarp is picked up at  31 Gessner Rd.  in Houston, TX  77024  Use PayPal to Brian@NelsonIdeas.com or Call Brian 713-467-3025.  
 Blue Box 1 Contact Brian at 31 Gessner Rd. Houston, TX  77024 Tel. 713-467-3025 Cell 713-927-4479 Click: E-mail me 
 www.IamFightingCancer.com   Bookmark this page now!   Anything Internet   
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1

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 Directory of Sites
 Blue Box 2  Brian Nelson

 Do you need a party tent of white or silver tarp? Go to www.PartyTentCity.com or to see all my links go to:  http://www.PartyTentCity.com/PTC/Websites.html

Today's  special sale: Business is slow. Call me right now while this include page is up and get a 23% discount off any www.PartyTentCity.com  order.  No charge for shipping if picked up at  31 Gessner Rd.  in Houston, TX  77024 Use PayPal to Brian@NelsonIdeas.com or Call Brian 713-467-3025. http://www.NelsonIdeas.com/Directory-All-Websites/Alphabetical.html
 Blue Box 2  Bookmark this page now!  
 Contact Brian at 31 Gessner Rd. Houston, TX  77024 Tel. 713-467-3025 Cell 713-927-4479 Click: E-mail me 
 www.IamFightingCancer.com   
 

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 You are at: http://www.NelsonIdeas.com/new-page-base-blank/no1.html  ud 08/28/2009 06:57 PM -0500 Bookmark this page now!

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Hi,
I hope the information on this compendium website will be helpful. It is collected from around  the internet.  I  can not guarantee its accuracy.  It is quoted from others. Check your doctor, lawyer or investment advisor before making any new decisions from my  websites. This data  will give you something to help you get started.  If you have additional information on this topic send it to me by e-mail. Click Here. I will add it for others  to see.

 If you have serious feelings or knowledge about ANY SUBJECT  then "MAKE A DIFFERENCE IN THE WORLD" by writing about it. " Publish or Perish!"  I will put it one of  my internet  directories.  You will be heard.  It is  free!

Brian Nelson  713-467-3025.

 Series I Savings Bonds To Earn 4.28%, Series EE To Earn 3.00% Fixed Rate, When Bought From November 2007 Through April 2008

FOR RELEASE AT 10:00 AM

November 1, 2007

The Bureau of the Public Debt today announced an earnings rate of 4.28% for Series I Savings Bonds, and a fixed rate of 3.00% for Series EE bonds, issued from November 2007 through April 2008. Earnings rates for I bonds and fixed rates for EE bonds are set each November 1 and May 1. Interest accrues monthly and compounds semiannually. Bonds held less than five years are subject to a three-month interest penalty. Both series have an interest-bearing life of 30 years; the EE bond fixed rate applies to a bond's 20-year original maturity.

I Bond Earnings Rate 4.28%, Fixed Rate 1.20%

The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the life of the bond, and the semiannual inflation rate. The 4.28% earnings rate for I bonds bought from November 2007 through April 2008 will apply for their first six months after issue. The earnings rate combines a 1.20% fixed rate of return with the 3.06% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The fixed rate applies for the 30-year life of I bonds purchased during this six-month period. The CPI-U increased from 205.352 to 208.490 from March through September 2007, a six-month increase of 1.53%.

Series EE Bonds Issued From May 1997 Through April 2005

Series EE bonds issued from May 1997 through April 2005 continue to earn market-based interest rates set at 90% of the average 5-year Treasury securities yields for the preceding six months. The new interest rate for these bonds, effective as the bonds enter semiannual interest periods from November 2007 through April 2008, is 4.11%. Market-based rates are announced effective each May 1 and November 1. A 3-month interest penalty applies to bonds redeemed before being held five years.

Series EE Bonds Issued Before May 1997

Series EE bonds issued before May 1997 earn various rates for semiannual earnings periods beginning between November 2007 and April 2008, depending on dates of issue.

Matured Series E Savings Bonds And Savings Notes

Series E savings bonds continue to reach final maturity and stop earning interest. Bonds issued from May 1941 through November 1977 no longer earn interest. All U.S. Savings Notes (Freedom Shares), which were issued from May 1967 through October 1970, have also stopped earning interest. Series E Bonds with issue dates from December 1977 through April 1978 will reach final maturity during the next six months.

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I Bonds Investor's Guide

Everyone Needs a Safe Place to Grow

Put Your Money in a place so safe, not even inflation can touch it.

 Honoring Great Americans

Helen Keller
Dr. Hector P. Garcia
Dr. Martin Luther King, Jr.
Chief Joseph
General George C. Marshall
Albert EinsteIn
Marian Anderson
Spark M. Matsunaga

  You will
 see their picture on
 the front
of  the
Bond.

Bookmark this page now!

      

 

Here Are Some Of The I Bond's Attractive Features:

  • I Bonds are based on a straightforward idea. They're sold at face value and grow with inflation-indexed earnings for up to 30 years.
  • I Bonds are affordable. You can invest as little as $50 or as much as $30,000 per year.
  • I Bonds are safe. They're U.S. Treasury securities backed by the full faith and credit of the United States Government.
  • I Bonds have tax advantages. You can defer Federal taxes on earnings for up to 30 years, and I Bonds are exempt from state and local income taxes. The best part is you don't need to do anything to get these benefits--they're built right into I Bonds.
  • I Bonds will usually increase in value every month, and interest is compounded semiannually.
  • I Bonds are liquid. They can be turned into cash any time after six months.

And remember, buying I Bonds goes a long way toward solving the biggest problem that all investors face: finding a way to save that guarantees that inflation won't eat away the value of their savings. For example, if inflation averages only 2 1/2 percent, in just 10 years it will take $1.28 to equal to today's dollar. That means your savings would have to earn 2 1/2 percent just to stay even. Because I Bonds pay a rate of return over and above changes in the Consumer Price Index for all Urban consumers (CPI-U), you'll always keep up.

Now That We've Covered All The Great
Features Of I Bonds, Are There Any Questions?
Looking to a safe investment that protects you savings from inflation for up to 30 years? Get a hold of the new I Bond from the U.S. Treasury. Its unique benefits make it an ideal way to build up savings you simply don't want to risk.*

What can be more comforting than knowing that you own an investment that guarantees you returns over and above the rate of inflation for up to 30 years.

* For a complete description of the I Bond and its terms and conditions investors are urged to read the regulations governing the offering of these bonds found in 31 CFR Part 359, particularly, 31 CFR 359.2, that sets forth the investment considerations with respect to I Bonds.
These Questions Are Answered Below.

How do you set the I Bond Earnings Rate?
How do you apply the Earnings Rate to my I Bonds?
How much do I Bonds cost?
When are earnings added to the I Bond?
How long will my I Bond earn interest?
If I need the money, when can I cash them in?
Can I ever lose money in I Bonds?
Is there a limit on how much I can invest each year in I  Bonds?
These Questions Are Answered Below
Who can buy I Bonds?
How do I buy I Bonds?
Where can I redeem I Bonds?
How can register my I Bonds?
I was thinking about using I Bonds as part of my children's college fund. Is there a tax break the same for I Bonds as for Series EE Bonds?
Can I Bonds be purchased as gifts?
What if I lose my bonds or they're destroyed?
Is there information on the Internet about I Bonds?
I'm not on-line yet; how else can I get more information?Is there anything else I should know about bonds?

 

3/3 
 How do you set the I Bond Earnings Rate?Bookmark this page now!

The earnings rate of an I Bond is a combination of two separate rates: a fixed rate of return and a variable semiannual inflation rate. The fixed rate remains the same throughout the life of the I Bond, while the semiannual inflation rate can vary every six months.

Each May 1 and November 1, the Treasury announces a fixed rate of return that applies to all I Bonds issued during the six month period beginning with the effective date of the announcement. The fixed rate of return carried by any given I Bond will never change.

Also, every May 1 and November 1 the Treasury determines a semiannual inflation adjustment ratebased on changes in the Consumer Price Index for all Urban consumers (CPI-U). The semiannual inflation rate announced in May is a measure of inflation over the preceding October through March; the rate announced in November is a measure of inflation over the preceding April through September.

The CPI-U is published monthly by the Department of Labor's Bureau of Labor Statistics. The semiannual inflation rate is then combined with the fixed rate of an I Bond to determine the bond's Earnings Rate for the next six months.

How do you apply the Earnings Rate to my I Bonds?

Like this: Let's say you buy your I Bond in October. Your I Bond will grow at an Earnings Rate we announced in May. Six months later, in April, your I Bond will pick up the Earnings Rate announced in the previous November. So twice a year -- on the anniversary and semiannual anniversary of its issue date -- the Earnings Rate of your I Bond will change to reflect an adjustment for inflation. Remember, the fixed rate of return, the rate your bond earns over inflation, stays the same.

How much do I Bonds cost?

I Bonds fit all budgets. They are sold at face value in denominations of $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000. This makes it easy to keep track of how your bonds grow.

When are earnings added to the I Bond?

Earnings are added to the bond each month, and interest is compounded semiannually. I Bonds increase in value on the first day of the month. An I Bond's issue date is the month and year when the full issue price is received by an I Bond issuing agent.

How long will my I Bond earn interest?

I Bonds earn interest for up to 30 years.

If I need the money, when can I cash them in?

You can cash your I Bond any time after six months and get your original investment plus earnings. However, I Bonds are meant to be longer term investments. So if you cash a bond within the first five years, you will forfeit three-months' earnings
.

Can I ever lose money in I Bonds?

No. I  In the rare event that the CPI-U goes down so the decline is greater than the fixed rate, your bonds will not decrease in value. The value of the bond will be maintained until the earnings rate will again produce an increase in value. So, not only do I Bonds protect your purchasing power from inflation, you can't lose even if there is significant deflation.

Is there a limit on how much I can invest each year in I Bonds?

Yes. You can only buy up to $30,000 worth of I Bonds each calendar year.

Who can buy I Bonds?

U.S. citizens and residents of any age with a Social Security Number can buy I Bonds.

How do I buy I Bonds?

You can order I Bonds at banks and thrift institutions. All you need to do is fill out a simple purchase order, pay for the bond, and your I Bond will be mailed to you within three weeks. I Bonds are also available through employer-sponsored payroll savings plans. Check with your employer to see if I Bonds are available where you work. If not, let them know you're interested.

Where can I redeem I Bonds?

Most banks and thrift institutions serve as paying agents for I Bonds. If they redeem Series EE Bonds, they also redeem I Bonds.

How can register my I Bonds?

There are three forms of registration available for individuals; they are outlined in the table below: 
Bookmark this page now!
 

REGISTRATION OPTIONS                   Bookmark this page now!
Category Example Rights
Single ownership 123-45-6789
John H. Smith		 Only the registered owner may cash. On the death of the owner the bond becomes part of the owner's estate.
Co-ownership 123-45-6789
John H. Smith or
Marsha L. Smith		 Either may cash the bond without knowledge or approval of the other. On the death of one co-owner, the other becomes the sole owner of the bond.
Beneficiary 123-45-6789
John H. Smithe POD
Marsha L. Smith		 Only the owner may cash the bond during his or her own lifetime. The beneficiary, if he or she survives the owner, automatically becomes sole owner of the bond when the original owner dies.

I was thinking about using I Bonds as part of my children's college fund. Is there a tax break the same for I Bonds as for Series EE Bonds?

Yes. If you qualify, you can exclude all or part of the interest on I Bonds from income as long as the proceeds are used to pay for tuition and fees at eligible post-secondary educational institutions. Details are available in IRS Publication 550, "Investment Income and Expenses." Contact your nearest Internal Revenue Service District Office to get this publication.

Can I give I Bonds as gifts?

Yes. I Bonds make great gifts for all occasions. You can have I Bonds sent to you for presentation or directly to the person receiving the gift. Ask for a free gift certificate where you buy I Bonds.

Can I change the registration on I Bonds?

Yes, but there are some restrictions. Check with your bank or visit our website to find out what transactions are available.

What if I lose my bonds or they're destroyed?

If your I Bonds are lost, stolen, or destroyed, they can be replaced free of charge as long the Bureau of the public Debt can establish that the bonds are either still outstanding or have been erroneously paid. I Bond owners can apply for replacement to the Bureau of the Public Debt, Parkersburg, West Virginia 26106-1328. Many banks stock the replacement application form, PDF 1048, or you can get it from our website at www.savingsbonds.gov.

You can help the replacement process along by keeping records of your bond serial numbers, issue dates (month and year found in the upper right-hand corner of a bond), registration (names and addresses), and the Social Security or Taxpayer Identification numbers in a safe place separate from the bonds. Getting the Savings Bond Wizard makes this easy. The Wizard is a gree computer program published by Public Debt that lets you keep an inventory of your bonds and also lets you know their current value. You can download the Wizard from the savings bonds website.

Is there information on the Internet about I Bonds?

Yes. Check out our website at www.savingsbonds.gov. You'll find a wealth of information at the website on the new I Bond. There's information about savings bonds, and other Treasury securities there as well. You can download the Savings Bond Wizard, order forms or even e-mail our experts with questions and comments.

I'm not on-line yet; how else can I get more information?

You can write to us:
Bureau of Public Debt
Savings Bond Operations Office
Parkersburg, WV 26106-1328.

Or call us ... to get current rate information call 1-800-4US-BOND or 1-800-487-2663.

The official Offering Circular (31 CFR 359) and Regulations Governing I Bonds (31 CFR 360) are posted on our website. Or, you can write for copies at our Parkersburg address.

Is there anything else I should know about bonds?

Yes. The CPI-U is reported by the Bureau of Labor Statistics. The Bureau of Labor Statistics operates independently of Treasury and Treasury has no control over the determination, calculation, or publication of the index. The regulations for the I Bond set forth the actions Treasury will take in the event the CPI-U is revised, rebased, discontinued, or fundamentally altered.

In addition, there can be a significant lag between the date the CPI-U is determined and interest is credited to an I Bond.

Blue Box 2  Brian Nelson

 Do you need a party tent of white or silver tarp? Go to www.PartyTentCity.com or to see all my links go to:  http://www.PartyTentCity.com/PTC/Websites.html

Today's  special sale: Business is slow. Call me right now while this include page is up and get a 23% discount off any www.PartyTentCity.com  order.  No charge for shipping if picked up at  31 Gessner Rd.  in Houston, TX  77024 Use PayPal to Brian@NelsonIdeas.com or Call Brian 713-467-3025. http://www.NelsonIdeas.com/Directory-All-Websites/Alphabetical.html
 Blue Box 2  Bookmark this page now!  
 Contact Brian at 31 Gessner Rd. Houston, TX  77024 Tel. 713-467-3025 Cell 713-927-4479 Click: E-mail me 
 www.IamFightingCancer.com   
 

Jan. 23, 2006, 11:57PM
 ADVICE: PERSONAL FINANCE    Bookmark this page now!
As misunderstood deals go, I Savings Bond one of best
By SCOTT BURNS
Universal Press Syndicate

Reader mail tells me that I Savings Bonds are one of the most misunderstood good deals available to the investing public. They offer a competitive return, can be held for up to 30 years, and can be redeemed in relatively small amounts at no cost. While they are being held, the interest they earn is accumulated tax-deferred.

Unlike mutual funds that invest in bonds, the value of I Savings Bonds does not fluctuate. It only goes up.
•Unlike most tax-deferred annuities, the penalties for early redemption are not severe.
•Unlike brokered CDs, the value of the investment does not fluctuate with interest rates.
So let's start at the beginning and go through the basic questions:

• What are I Savings Bonds?

Unlike EE Savings Bonds, which earn and accumulate tax-deferred interest at a rate pegged to the rate on five-year Treasury obligations, I Savings Bonds offer an inflation-protected rate of return based on the Consumer Price Index and a premium over the inflation rate. Like EE vings Bonds, the interest earned is accumulated tax-deferred.

• How is the yield on I Savings Bonds determined?

Every six months the basic interest rate may change. The basic interest rate is a premium that is added to the rate of inflation. Bonds purchased in the current period (November to April), are earning at a 6.73 percent annualized interest rate based on a 1 percent premium and a 5.70 percent inflation rate.

Bonds purchased in other periods will be earning at different rates because there were different basic interest rates in other periods. These rates varied from a high of 3.60 percent for bonds purchased in the May to October 2000 period to a low of 1 percent for bonds purchased in the November 2005 to April 2006 period. Because the rate of inflation is added to each basic interest rate, all the I Savings Bonds issued in earlier periods are currently earning more than 6.73 percent. Bonds purchased in the May to October 2000 period, for instance, are currently earning a whopping 9.40 percent.

• Why is the basic interest rate so much lower today than it was when the bonds were introduced?

Think of it as marketing. The bonds were new and unfamiliar when they were introduced in 1998. Today, people understand that the basic rate is a premium over the inflation rate. The 1 percent basic rate bonds available today are yielding 6.73 percent, well over yields on bank CDs, tradable Treasury securities, and mutual funds that invest in government securities.

• Will the current yield decline?
It all depends on the inflation rate. If inflation declines, the composite interest rate (basic rate plus inflation rate) will decline. The real return over the rate of inflation, however, will be fixed at whatever the basic interest rate is when you buy the bonds. If you are concerned about future inflation, these bonds are likely to give you more protection than conventional bonds.

• Is a 1 percent premium over inflation a good rate?

According to Ibbotson Associates, intermediate and long-term government bonds earned a premium of 2.4 percent a year over the annual inflation rate between 1926 and 2004. U.S. Treasury bills earned a premium over inflation of only 0.7 percent over the same period.

Investors, however, could experience long periods when inflation exceeded what they were earning on their conventional bonds. I Savings Bonds will always earn a premium over inflation. In addition, the interest is tax- deferred. As a consequence, I believe they are superior to Treasury bills and competitive with conventional bonds. They are particularly superior to most mutual funds and variable annuities that invest in government bonds because mutual fund and variable annuity expenses reduce their advantage.

When you do the math, I Savings Bonds look very attractive.

• Do I Savings Bonds have any other advantages?

They are particularly useful for retirement planning and taxes. Because they can be redeemed at their accumulated value at any time after five years without penalty, they offer risk-free access to sums of money in very flexible amounts.

In addition, your tax liability will be on only the accumulated interest portion of the redeemed amount. A $100
I Savings Bond purchased in November 2000, for instance, will be redeemable for $139.88 this April. A retiree can access the full amount but will need to pay income taxes on only $39.88 in interest.

In comparison, mutual fund returns are currently taxable. Variable annuity withdrawals are 100 percent taxable income until the accumulated income is exhausted.

• Where can I buy I Savings Bonds?

The surest (fastest) way is to use the Web. Enter your ZIP code, and it will give you the phone number of the nearest Federal Reserve Bank. You can also set up an account online. It is also possible to buy them through a regular bank, but many readers who have tried say they are not available through that channel.

Questions about personal finance may be sent to: SCOTT BURNS, P.O. Box 655237, Dallas, TX 75265; e-mail can be sent to scott@scottburns.com. Burns' Web page is www.scottburns.co
Click Here for more information on I- Bonds available from the United  States Department of the Treasury Bureau of Public Debt.

FOR RELEASE AT 10:00 AM EST  November 1, 2005

I BOND EARNINGS RATE  

The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which will apply for the life of the bond, and the inflation rate. The 6.73 percent earnings rate for I bonds bought from November 2005 through April 2006 will apply for the first six months after their issue. The earnings rate combines the 1.00 percent fixed rate of return with the 5.70 percent annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The CPI-U increased from 193.3 to 198.8 from March to September 2005, a six-month increase of 2.85 percent.

Treasury’s inflation-indexed I bonds are designed to offer all Americans a way to save that protects the purchasing power of their investment by assuring them a real rate of return above inflation. I bonds have features that make them attractive to many investors. They are sold in electronic form in amounts of $25 and above, or in paper form at face value in denominations of $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000, and earn interest for as long as 30 years. I bond earnings are added every month and interest is compounded semiannually. They are state and local income tax exempt, and Federal income tax on I bond earnings can be deferred until the bonds are cashed or they stop earning interest after 30 years. Investors cashing I bonds before five years are subject to a 3-month earnings penalty.

Savers and investors can now open an on-line account to purchase I bonds in electronic form, as well as EE savings bonds and Treasury marketable securities, through the website www.treasurydirect.gov. Account holders can purchase, manage, and redeem such I bonds over the Internet 24 hours a day, seven days a week.

I BOND FIXED RATE 1.00%

Series I, inflation-indexed savings bonds purchased from November 2005 through April 2006 will earn a 1.00 percent fixed rate of return above inflation. The 1.00 percent fixed rate applies for the 30-year life of I bonds purchased during this six-month period.

EARNINGS RATES FOR ALL I BONDS

Earnings rates and actual yields for I bonds may be found in the I Bonds Earnings Report.

MORE INFORMATION

Information about savings bonds is available at Public Debt’s website at www.treasurydirect.gov. An Earnings Report, which contains rate and yield information for bonds is available by mail. Send a postcard asking for “Earnings Report” to Bureau of the Public Debt, 200 Third Street, Parkersburg, WV 26106-5312.

 
UNITED STATES SAVINGS BONDS EARNINGS REPORT
                        VALUES AND YIELDS FOR $100 SERIES I BONDS
                              NOV 2005 THRU OCT 2006

      The table shows semiannual values for $100 Series I bonds.*  Values for other
      denominations are proportional to the values shown.  For example, the value of
      a $50 bond is one-half the amount shown and the value of a $500 bond is five
      times the amount shown.  The "Current Earnings" column shows the annual yield
      that a bond will earn during the period indicated.  The "Earnings From Issue"
      is the bond's yield from its issue date to the date shown or date adjusted as
      described in the footnotes.

-----------------------------------------------------------------------------------------
                  |          Earnings to Date when held 5 years***        | Redeem Value
  Series I Bond   |-------------------------------------------------------|--------------
   Issue Dates    |   Start   |    End    | Start |  End  |Current| Since | Start |  End
                  |   Date**  |   Date**  | Value | Value |Earning| Issue | Value | Value
-----------------------------------------------------------------------------------------
11/2005 -  4/2006 | 11/1/2005 |  5/1/2006 |100.00 |103.36 | 6.72% | 6.72% |100.00 |101.68
 5/2005 - 10/2005 | 11/1/2005 |  5/1/2006 |102.40 |105.96 | 6.95% | 5.87% |101.20 |104.16
11/2004 -  4/2005 | 11/1/2005 |  5/1/2006 |104.20 |107.72 | 6.76% | 5.02% |103.00 |105.92
 5/2004 - 10/2004 | 11/1/2005 |  5/1/2006 |105.96 |109.52 | 6.72% | 4.60% |104.76 |107.72
11/2003 -  4/2004 | 11/1/2005 |  5/1/2006 |107.24 |110.92 | 6.86% | 4.19% |106.00 |109.04
 5/2003 - 10/2003 | 11/1/2005 |  5/1/2006 |109.76 |113.52 | 6.85% | 4.27% |108.48 |111.60
11/2002 -  4/2003 | 11/1/2005 |  5/1/2006 |113.40 |117.56 | 7.34% | 4.68% |111.96 |115.48
 5/2002 - 10/2002 | 11/1/2005 |  5/1/2006 |116.20 |120.72 | 7.78% | 4.76% |114.60 |118.44
11/2001 -  4/2002 | 11/1/2005 |  5/1/2006 |118.80 |123.40 | 7.74% | 4.73% |117.16 |121.08
=========================================================================================
                                       I BOND RATES

      Composite earnings rate --      ------------------------
 Your Series I bond earns interest at a variable composite earnings rate.
 The earnings rate has two parts:  a fixed rate that remains the same for the life  of your bond and an inflation rate that is updated every six months as your  bond enters a new rate period.  Your bond's first rate period begins on its issue date.  A new rate period begins every six months after that.  For the  full six months of each rate period, your bond earns interest at its most recently determined composite rate.  Composite earnings rates are determined each May 1 and November 1, when the fixed rate for newly issued I bonds and the  inflation rate for all I bonds are announced.
 COMPOSITE EARNINGS RATES FOR PERIODS THAT BEGIN NOV 2005 THROUGH APR 2006
               -----------------------------------------------------------
               |        Issue        | Fixed |  Semiannual  | Composite  |
               |        Dates        | Rate  |Inflation Rate|   Rate     |
               -----------------------------------------------------------
               | Nov 2005 - Apr 2006 | 1.00% |     2.85%    |    6.73%   |
               | May 2005 - Oct 2005 | 1.20% |     2.85%    |    6.93%   |
               | Nov 2004 - Apr 2005 | 1.00% |     2.85%    |    6.73%   |
               | May 2004 - Oct 2004 | 1.00% |     2.85%    |    6.73%   |
               | Nov 2003 - Apr 2004 | 1.10% |     2.85%    |    6.83%   |
               | May 2003 - Oct 2003 | 1.10% |     2.85%    |    6.83%   |
               | Nov 2002 - Apr 2003 | 1.60% |     2.85%    |    7.35%   |
               | May 2002 - Oct 2002 | 2.00% |     2.85%    |    7.76%   |
               | Nov 2001 - Apr 2002 | 2.00% |     2.85%    |    7.76%   |
               | May 2001 - Oct 2001 | 3.00% |     2.85%    |    8.79%   |
               | Nov 2000 - Apr 2001 | 3.40% |     2.85%    |    9.20%   |
               | May 2000 - Oct 2000 | 3.60% |     2.85%    |    9.40%   |
               | Nov 1999 - Apr 2000 | 3.40% |     2.85%    |    9.20%   |
               | May 1999 - Oct 1999 | 3.30% |     2.85%    |    9.09%   |
               | Nov 1998 - Apr 1999 | 3.30% |     2.85%    |    9.09%   |
               | Sep 1998 - Oct 1998 | 3.40% |     2.85%    |    9.20%   |
     ============================================================================
      How we calculate composite rates
      Here's an example of a composite rate calculation.  The example shows the
      composite rate that I bonds issued in July 2005 will begin to earn in
      January 2006.
      Fixed rate = 1.20%
      Semiannual inflation rate = 2.85%
      Composite rate = [Fixed rate + (2 x Infl. rate) + (Fixed rate x Infl. rate)]
      Composite rate = [0.0120 + (2 x 0.0285) + (0.0120 x 0.0285)]
      Composite rate = [0.0120 + 0.0570 + 0.0003420]
      Composite rate = 0.0693420
      Composite rate = 6.93420%
      Composite rate = 6.93%

Comparison of TIPS and Series I Savings Bonds

  TIPS I-Bonds
Type of Investment Marketable--can be bought and sold in the secondary securities market Non-marketable - cannot be bought or sold in secondary securities market. Registered in names of individuals or, for paper bonds only, their fiduciary estates.
How to buy At auction through TreasuryDirect, Legacy Treasury Direct, or through banks, brokers, and dealers. Starting in January 2007, 20-year TIPS are no longer available in Legacy Treasury Direct, but are available in TreasuryDirect. Electronic: Anytime online from TreasuryDirect. Paper: most banks, credit unions, or savings institutions.
Purchase Limits Auction: Non-competitive bidding:up to $5 million; Competitive bidding: up to 35% of offering amount Electronic: $5,000 per Social Security number per calendar year. Paper: $5,000 per Social Security number per calendar year.
Par Amount/Face Amount Minimum purchase is $1,000. Increments of $1,000. Electronic: purchased in amounts $25 or more, to the penny; Paper: Offered in 8 denominations ($50, $75, $100, $200, $500, $1,000, and $5,000).
Inflation Indexing Inflation adjustments measured by CPI-U published monthly Semiannual inflation rate (based on CPI-U changes) announced in May and November.
Discounts/ Face Amount Price and interest determined at auction. Electronic I Bonds - purchased in amounts of $25 or more, to the penny. Paper bonds issued at face amount (A $100 I-Bond costs $100.)
Earnings Rates Principal increases/decreases with inflation/deflation. Coupons calculated based upon adjusted principal. Fixed coupon rate. Earnings rate is a combination of the fixed rate of return, set at the time of purchase, and a variable semiannual inflation rate.
Coupons/ Interest Semiannual interest payments at the coupon rate set at auction. Inflation-adjusted principal is used to calculate the coupon amount Interest accrues over the life of the bond and is paid upon redemption
Tax Issues Semiannual interest payments and inflation adjustments that increase the principal are subject to federal tax in the year that they occur, but are exempt from state and local income taxes. Tax reporting of interest can be deferred until redemption, final maturity, or other taxable disposition, whichever occurs first. Interest is subject to federal income tax, but exempt from state and local income taxes. Interest can also be claimed annually.
Life Span TIPS are issued in terms of 5, 10, and 20 years. Earn interest for up to 30 years.
Disposal before maturity Can be sold prior to maturity in the secondary market. Redeemable after 12 months with three months interest penalty. No penalty after 5 years.

Pricing U.S. Savings Bonds Tools.

 
Whether you're a savings bond owner, a financial institution, or a software developer, we have several different pricing tools available to help you. Read the descriptions below, then choose the option that best meets your needs!
Online Savings Bond Calculator
  • For Savings Bond Owners
 Find out what your bonds are worth with our new online calculator. Our calculator will price Series EE, E, I bonds and Savings Notes. Features include current interest rate, next accrual date, final maturity date, year-to-date interest earned, and more..
Savings Bond Wizard™
  • For Savings Bond Owners
The Savings Bond Wizard helps you manage your savings bond inventory. This Windows® application allows you to maintain an inventory of your bonds and determine the current redemption value, earned interest, and other information. You can also print your bond inventory, providing you with an important record if you ever need to replace any of your savings bonds. The Wizard makes it easy and fun to manage your savings bond investment!
Savings Bond Pro®
 
  • For Financial Institutions
Savings Bond Pro® is a new savings bond pricing system that helps financial institutions cash, and price customers' savings bonds. Savings Bond Pro uses the latest technologies and runs on Windows '95, '98, and NT 4.0 or higher. Best of all, it's free to authorized paying agents!
Bond Earnings Reports
  • For Savings Bond Owners
These tables show savings bond redemption values, 6-month earnings as an annual yield, and yield from issue date for $100 Series EE/E bonds, Series I bonds, and savings notes. Values for other denominations can be calculated using the values shown.
Savings Bond Value Files
  • For Savings Bond Owners
  • For Software Developers
These files are used by programmers developing applications for calculating the current redemption values of Series EE, E & I United States Savings Bonds and Savings Notes and by users of programs that require updating with current values. Some historical files are also available, dating back to May 1992.
PD 3600 - Basic Savings Bond Value Tables
  • For Savings Bond Owners
Use this form to find current values for any $25 Series E Bond, $50 Series EE Bond, $50 I Bond, or $25 Savings Note bought from 1941 through today. You'll need to do some simple computations to figure current values for larger denominations or to figure the amount of interest your bond has earned. An updated version of this form is available every six months.
Comprehensive Savings Bond Value Tables
  • For Savings Bond Owners
  • For Financial Institutions
Use this file to find values for any Series E Bond, Series EE Bond, I Bond, or Savings Note bought from 1941 through today. The file gives you values and interest earned for all denominations; you don't have to compute any values. An updated version of this file is available every six months.
Fun Calculators
  • For Savings Bond Owners
These calculators can help you plan your financial future. Use the Growth Calculator to see how savings bonds can help you reach your financial goals. With the Savings Planner, you can find out how to set up a regular savings plan. Our Tax Advantages Calculator shows just how competitive your savings bond investment can be.
I Bond Interest Rates
I Bond interest rates have two parts:
  • A fixed rate that lasts for 30 years
  • An inflation rate that changes every six months
    		•

    FIXED RATES

    I bond fixed rates are determined each May 1 and November 1. Each fixed rate applies to all I bonds issued in the six months following the rate determination. For example, a fixed rate determined on May 1, 1999 applies to all I bonds issued from May 1999 through October 1999.

    DATE FIXED RATES*
    NOV 1, 2005 1.00%
    MAY 1, 2005 1.20%
    NOV 1, 2004 1.00%
    MAY 1, 2004 1.00%
    NOV 1, 2003 1.10%
    MAY 1, 2003 1.10%
    NOV 1, 2002 1.60%
    MAY 1, 2002 2.00%
    NOV 1, 2001 2.00%
    MAY 1, 2001 3.00%
    NOV 1, 2000 3.40%
    MAY 1, 2000 3.60%
    NOV 1, 1999 3.40%
    MAY 1, 1999 3.30%
    NOV 1, 1998 3.30%
    SEP 1, 1998 3.40%
    *annual rates compounded semiannually

    SEMIANNUAL INFLATION RATES

    The semiannual inflation rate is determined each May 1 and November 1. It is the percentage change in the Consumer Price Index for all Urban Consumers (CPI-U) over six months. Each semiannual inflation rate applies to all outstanding I bonds for six months.

    DATE INFLATION
    RATES*
    NOV 1, 2005 2.85%
    MAY 1, 2005 1.79%
    NOV 1, 2004 1.33%
    MAY 1, 2004 1.19%
    NOV 1, 2003 0.54%
    MAY 1, 2003 1.77%
    NOV 1, 2002 1.23%
    MAY 1, 2002 0.28%
    NOV 1, 2001 1.19%
    MAY 1, 2001 1.44%
    NOV 1, 2000 1.52%
    MAY 1, 2000 1.91%
    NOV 1, 1999 1.76%
    MAY 1, 1999 0.86%
    NOV 1, 1998 0.86%
    SEP 1, 1998 0.62%
    *semiannual rates

    COMPOSITE EARNINGS RATES

    We combine fixed rates and semiannual inflation rates to determine composite earnings rates. An I bond's composite earnings rate changes every six months after its issue date. For example, the earnings rate for an I bond issued in March 1999 changes every March and September.

    EARNINGS RATES THAT BONDS WILL BEGIN
    EARNING  BETWEEN NOV 2005 AND APR 2006
    ISSUE
    DATES    		 EARNINGS
    RATES*
    NOV 2005 - APR 2006 6.73%
    MAY 2005 - OCT 2005 6.93%
    NOV 2004 - APR 2005 6.73%
    MAY 2004 - OCT 2004 6.73%
    NOV 2003 - APR 2004 6.83%
    MAY 2003 - OCT 2003 6.83%
    NOV 2002 - APR 2003 7.35%
    MAY 2002 - OCT 2002 7.76%
    NOV 2001 - APR 2002 7.76%
    MAY 2001 - OCT 2001 8.79%
    NOV 2000 - APR 2001 9.20%
    MAY 2000 - OCT 2000 9.40%
    NOV 1999 - APR 2000 9.20%
    MAY 1999 - OCT 1999 9.09%
    NOV 1998 - APR 1999 9.09%
    SEP 1998 - OCT 1998 9.20%
    *annual rates compounded semiannually

    HOW WE SET COMPOSITE RATES
     

    Here's how we set the composite rate for I bonds issued Nov 2005 - Apr. 2006:

    Fixed rate = 1.00%
    Semiannual inflation rate = 2.85%
    Composite rate = [Fixed rate + 2 x Semiannual inflation rate + (Fixed rate X Semiannual inflation rate)]
    Composite rate = [0.0100 + 2 x 0.0285 + (0.0100 X 0.0285)]
    Composite rate = [0.0100 + 0.057 + 0.000285]
    Composite rate = [0.067285]
    Composite rate = 0.0673
    Composite rate = 6.73%
    line divider     
    What's the
    Difference
    Between
    I Bonds and
     EE Bonds?
    The chart below will help you understand, at a glance, the major differences between I Bonds and EE Bonds. If you want to learn more, see our main menus for I Bonds and EE Bonds.
      EE Bond I Bond
    Features Issued at 50% of face value. (A $100 EE Bond costs $50.) Issued at face value. (A $100 I Bond costs $100.)
    Offered in 8 denominations ($50, $75, $100, $200, $500, $1,000, $5,000, and $10,000). Offered in 8 denominations ($50, $75, $100, $200, $500, $1,000, $5,000, and $10,000).
    $30,000 issue price annual purchase limit per person. $30,000 annual purchase limit per Social Security Number.
    Interest Calculated as 90% of 6-month averages of 5-year Treasury Securities yields. Calculated as an earning of a fixed rate of return and a semiannual inflation rate based on CPI-U.
    Rates announced every May 1 and November 1.

    Please Note: Series EE bonds purchased May 2005 and after will earn a fixed rate of return. See our press release for more information.    		 Rate Announcement: Same as EE.
    Guaranteed to reach face value in 20 years. No guaranteed level of earnings.
    Increases in value monthly and compound semiannually. Interest is paid when the bond is redeemed. Generally increases in value monthly and interest compounds semiannually (except in periods of deflation when the bond value could remain unchanged). Interest is paid when the bond is redeemed.
    Earn interest for up to 30 years. Life span: Same as EE.
    Cashing Can be cashed any time after 12 months. Same as EE.
    A 3-month interest penalty applies to bonds redeemed during the first 5 years. Same as EE.
    Financial institution reports interest earnings (difference between redemption value and purchase price) on IRS form 1099-INT. Savings bonds are exempt from state and local income taxes. Same as EE.
    Eligible for tax benefits upon redemption when used for qualified education expenses. Same as EE.

    Invest money? Who? Me? 
    Where do I put it?
    How much risk can I take?
    One option is to  purchase     United States Government "I Bonds" This site is a compendium of  Information and Frequently  Asked Questions about I Bonds a secure Investment product.

    You are at: http://www.MoneyAndFinanceDirectories.com/I-Bonds/Investment-Security.html ud 08/28/2009 06:57 PM -0500