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Author: goodald Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35387  
Subject: Re: Question On I Bonds Date: 6/5/2003 5:12 PM
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Thank you Foolferlove and JB

You both answered my questions and raised an interesting point.

>>>>>
What happens if the inflation rate is -1.8% or lower? I'll admit the likelihood of this isn't high but run the numbers in this case.

"the redemption value of your I Bonds will remain the same until the earnings rate becomes greater than zero."
<<<<<

I actually didn't realize that I bonds could have zero growth, I thought the fixed portion would always pay. I'll keep thinking about my options for now. I'm not really in a hurry to stick my cash anywhere.

-My E-fund's pretty built up
-I've also saved an additional 5K that i'll eventually be using to help pay off my student loans.

Still Fulltime worker+student, loans won't come due for 2-3 years. I'm looking for a safe account with yields near to my student loan interest rate. Currently my E fund and tuition fund are both in INGdirect, which is paying 2% (just lowered again, sigh). I'm trying to keep as much cash on hand as possible in case "something" happens where I work. I'm almost certain that i'm safe here... but "almost certain" doesn't mean much nowadays :)

Thanks again for your feedback!
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