The next I Bond inflation rate number will be 3.07%. This means depending on the fixed rate above inflation of the bond you own you could be earning 6.52% (Sept / Oct 1998) to 3.17% (May09 - October 09). Of course, if you had them the last 6 months they paid 0% so you have to average this out but given this is a Government insured, state tax free and federal tax free (if used for education under some conditions) this is an incredible deal.
I also agree with the article over at Savings Bond Adviser which is betting the Feds will increase the fixed rate on new bonds (currently at a paltry .1%) because starting next year they will be offered as an option for your tax refund versus cash. If they do increase that fixed rate, I HIGHLY ENCOURAGE people to buy more of these bonds. They are a "God Send".
As I have stated before, you will NEVER hear a "financial adviser" recommend them because no financial adviser makes any money off of them. Don't let that fool you. These are well worth the investment.
You Can Resist Even if You are In The Military!
