Inflation Protected Series I Bonds Now Pay 3.36%

The Bureau of the Public Debt today announced an earnings rate of 3.36% for Series I Savings Bonds issued from October 2, 2009 through April 30, 2010.

The 3.36% earnings rate for I bonds bought from November 2, 2009 through April 30, 2010 will apply for their first six months after issue. The earnings rate combines a 0.30% fixed rate of return with the 3.06% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). When the inflation rate is less than zero, a bond's earnings rate is less than its fixed rate (but the earnings rate is never less than zero).

Bob Brinker says on the radio we are seeing deflation but that is due to a bubble in inflation a year ago due to higher oil prices. Those good at math can easily see the bubble in the CPI-U data corresponding to oil prices near $150. If the CPI stays where it was for the last (Sept.'09) reading then we will see significant ANNUAL inflation in November and December. For example:

Dec. 2008 CPI-U = 210.228
Sept. 2009 CPI-U = 215.969
Change = 5.741 / 210.228 x 100%
or 2.73% annual inflation!
CPI-U Table

The fixed rate for Series-I Bonds applies for the 30-year life of I bonds purchased during this six-month period.

Minimum purchase:

• $50 for a $50 I Bond when purchasing paper bond certificates
• $25 for a $25 I bond when purchased electronically via TreasuryDirect

Maximum purchase(per calendar year):

• $5,000 in TreasuryDirect and $5,000 in paper bonds
• $10,000 total per social security number
  

Denominations:

• Paper bonds: $50, $75, $100, $200, $500, $1,000, and $5,000
• Electronic bonds via TreasuryDirect: purchase to the penny for $25 or more

For more information, see:

• I Bonds Explained
  
  
• Current iBond Rates
  
  
• iBond Rate History
  
  
• CPI-U Table
  
  
• IBOND Press Release

For older ibonds and what they will pay, see:

I Bond Composite Rates (iBonds)

Disclaimer: I own Series I Bonds in my personal account. Due to the small amount of i-bonds you can buy now, I own far more TIPS and TIPS funds in my personal and newsletter (FREE SAMPLE) portfolios.

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Moneytalk With Bob Brinker Guests - November 2009 List of their Books

Bob Brinker, host of Moneytalk, usually interviews a guest in the final hour of his three hour weekend radio show. These guests usually have a new book to promote. Bob has become good at interviewing his guests to let them express their opinions. This has become the favorite segment of the show for many of us. Below is a list of the guests for this month with links to buy their books to support this site.

Saturday November 28, 2009: Henry Mintzberg: "Managing"

Academic Henry Mintzberg is ranked nine on the "Top 20 Business Thinkers" list of the Wall Street Journal and 16 on the Financial Times' "The Thinkers 50" list. Managing may be the most revealing book yet written about what managers do, how they do it, and how they can do it better. Mintzberg concludes, "to be effective in any managerial position, there is a need for thoughtfulness--not dogma, not greed risen to some high art, not fashionable technique, not "me too" strategies, not all that `leadership' hype, just plain old judgment." An excellent, must-read book for managers and aspiring managers" says Mary Whaley in Booklist, Sep 2009.

Sunday November 22, 2009: David DeLong: "Buddy Can You Spare a Job ­

The MetLife Study of the New Realities of the Job Market for Aging Baby
Boomers"

Saturday November 21, 2009: Barbara Weltman, contributing editor to "J.K. Lasser's Your Income Tax 2010: For Preparing Your 2009 Tax Return"

Sunday November 15, 2009: Leander Kahney: Inside Steve's Brain
An in-depth profile of Apple CEO Steven Jobs.

Saturday November 14, 2009: Jim Lebenthal: Lebenthal On Munis: Straight Talk About Tax-Free Municipal Bonds for the Troubled Investor Deciding

Saturday and Sunday November 7 & 8, 2009:
Guest Host Lynn Jimenez:
Book ¿Se Habla Dinero? The Everyday Guide to Financial Success (English and Spanish Edition)
A bilingual guide to the basics of financial success.

Lynn Jimenez Fan Club

Saturday October 31, 2009: David L. Scott: "The American Heritage Dictionary of Business Terms"

Sunday October 25, 2009: Dale Robyn Siegel, author of "The New Rules for Mortgages"
Bob said the switchboard lit up like a Christmas tree with a record number of callers wanting to ask Ms. Siegel questions.

Saturday October 24, 2009: "Last Man Standing: The Ascent of Jamie Dimon and JPMorgan Chase"

Sunday October 18, 2009: Robert A. Hefner, III, author of the book "The Grand Energy Transition: The Rise of Energy Gases, Sustainable Life and Growth, and the Next Great Economic Expansion"

Saturday October 17, 2009: Micheline Maynard, senior business correspondent for the New York Times. Autor of new book "The Selling of the American Economy: How Foreign Companies Are Remaking the American Dream"

Sunday October 11, 2009: John Mullins, co-author of "Getting to Plan B: Breaking Through to a Better Business Model"

Saturday October 10, 2009: author of "Inside Larry and Sergey's Brain (English, Spanish, Japanese, Mandarin Chinese and Portuguese Edition)"


Sunday October 4, 2009: Steven Davidoff, author of the book, "Gods at War: Shotgun Takeovers, Government by Deal, and the Private Equity Implosion"

Saturday October 3, 2009: Gretchen Morgenson, author of the book "The Capitalist's Bible: The Essential Guide to Free Markets--and Why They Matter to You"

Guest Host Lynn Jimenez: Lynn Jimenez Fan Club : Book
¿Se Habla Dinero? The Everyday Guide to Financial Success (English and Spanish Edition)
A bilingual guide to the basics of financial success. ¿Se Habla Dinero? walks readers through the fundamentals of personal finance and money management and explains how to open and use bank accounts; establish and manage credit; save and borrow money for education; and master basic investing techniques. This bilingual guide makes intimidating topics easy and gives readers the confidence they need to move forward.

Buy from Amazon.com here



Disclaimer. I get a commission for books purchased with these links. Please show support and use the links.