Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Greetings, Chris, and welcome. You asked:

<<the current 7.49% interest rate is an annual yield, no?>>


<<Cashing out at six months would yield three months worth of interest, correct?>>


<<how often is the interest compounded?>>

The interest accrues monthly and compounds semiannually, except in periods of deflation when bond value remains unchanged.

<<I'm just curious because I am wondering whether it would be worth my time to make a 0% APR purchase on my new credit card to get an I-bond that I could cash out before any finance charges accrued...>>

You could do the same thing by using a 6-month CD that wouldn't give you a 3-month interest penalty like that found in the I Bond.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.