Lokicious:You are correct that new I-Bond purchases must be re-examined every 6 months as the rates and conditions change. I was responding to Ali's question as to whether a couple could purchase more than $60,000. year in paper I-Bonds and presented what I believe to be the best source for information on any type of US Savings Bonds. I was not attempting to comment as to the merits of investing in I-Bonds as compared with other investments avail. at this time. We began buying I-Bonds in November 1999 when the fixed rate component was 3.4% and continued buying them through May of 2001 at 3.0% fixed rate. November 1, 2001 the fixed rate dropped to 2% and we have not bought any since. The current composite rate of the bonds we hold is 8.73% to 9.13% tax deferred and exempt from state and local taxes. I only wish that I had known then that I could have purchased more than the stated $30,000. per person per year. I did not buy Tom Adams book until 2005 and through his e-mail alerts, he keeps us apprised of any significant changes in bonds. It reduces the necessity of having to rebuy his book every 6 months. I do however recommend that a copy of this book be in everyones investment library.When the rates on EE bonds were pegged to 90% of the 5 year Treasury, even the lowly EE could be included in a savings bond portfolio, however, since they are now are a fixed rate and with the fear that inflation is rearing again, it would be difficult to include them in any long range stratagy.I too wish they would raise the fixed rate of the I-Bond. Having the high inflation component and the extremely low fixed component is cause for concern if we ever have a deflationary period. If you enroll in Savings Bond Alerts e-mail alerts, he will give you his best estimates as to the rates for the next six months about April 21st and October 21st. I do recommend that everyone sign-up for these. They are free,and give you one more valuable information source to be included in your total investment package. DM
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