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Subject:  3.06% rate for tax-deferred I-Bonds Date:  11/3/2011  10:26 PM
Author:  loveoldcars Number:  33417 of 37017

The Bureau of the Public Debt Tuesday announced the new earnings rate of 3.06% for Series I (for Inflation) savings bonds issued from November 1, 2011 through April 2012.

Series I Bonds, or i-bonds, are a low-risk, liquid savings product. While you own them they earn interest and protect you from inflation. You may purchase I Bonds here and at most local financial institutions.

Inflation Bond Facts:

I Bonds earn interest from the first day of their issue month.

You can redeem them at any time after a twelve-month minimum holding period

They are an accrual-type security

They increase in value monthly and the interest is paid when you redeem the bond

I Bonds are sold at face value; i.e., you pay $50 for a $50 I Bond

I Bonds grow in value with inflation-indexed earnings for up to 30 years

If you redeem I Bonds before they’re five years old, you’ll forfeit the three most recent months’ interest; at or after 5-years old, you won’t be penalized.

Annual rates compounded semiannually

I don't own any I-bonds, but will probably buy some by the end of the yr. I do own TIPS thru VIPSX

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