I Bond Investments Georgia

Built to buttress inflation and issued in eight different denominations, from $50 up to $10,000, the I Series bonds offer a fixed rate of return plus an adjustment for rising prices.

Local Companies

Best Bank
678-993-5353
3770 Data Drive
Norcross, GA
John Wieland Homes & Neighborhood
770-703-1692
4125 Atlanta Road, SE
Smyrna, GA
ACEO Capital Group Llc
(770) 396-6833
1915 Spalding Dr
Atlanta, GA
Sprayberry Insurance Agency, Inc.
(678) 654-6984
5905 steeplechase blvd
cumming, GA
RBC Centura Bank
404-495-6949
4855 Briarcliff Road
Altanta, GA
Ameriprise Financial
678-627-0149
1907 Harts Mill Road
Atlanta, GA
BestBank
678-993-5353
2175 Parklake Drive
Atlanta, GA
Branch Banking & Trust Co. (BB&T)
404-442-5043
950 E. Paces Ferry Rd.
Atlanta, GA
Brookhaven Bank 10
404-633-BANK
2987 Clairmont Road, NE
Atlanta, GA
CDC Federal Credit Union
404-325-3270
2301 Parklake Drive, NE
Atlanta, GA

Bond Investing For Dummies

Adapted From: Bond Investing For Dummies

I bonds are built to buttress inflation. Issued in eight different denominations, from $50 up to $10,000, the I Series bonds offer a fixed rate of return plus an adjustment for rising prices. Every May 1 and November 1, the Treasury announces both the fixed rate for all new I bonds and the inflation-adjustment for all new and existing I bonds. At the time of this writing, the fixed rate is 1.4 percent, and the inflation adjustment is a twice annual 1.55 percent. Adding them together, the I bonds are currently yielding 4.52 percent a year. (Yeah, 1.55 + 1.55 + 1.4 = 4.50 percent, but the added .02 percent is due to interest on interest.)

After you buy an I bond, the fixed rate is yours for the life of the bond. The inflation rate adjusts every six months. You collect all your interest only after cashing in the bond. (That is called accrual interest.)

You have to hold I bonds for at least a year, and if you sell within five years, you pay a penalty. There's a limit to how many I bonds you can invest in — $30,000 a year, per person. And in certain circumstances, the proceeds may become tax-free if used for education expenses.

Because the rate of inflation can vary dramatically from six-month period to six-month period, there are times when I bonds make for fabulous short-term investments. In November 2005, for example, after a spike in the price of oil after Hurricane Katrina, the official inflation rate shot up, and I bonds were paying a very impressive 6.73 percent. At that point, anyone who had cash to invest might have wanted to consider them very seriously. But by the following May, after inflation had cooled, the yield on I bonds dropped rather precipitously to 2.43 percent. They were no longer such a hot investment — you could have done much better with a bank CD.

If you plan to hold I bonds as a long-term investment (longer than a year or two), you should be more concerned with the fixed rate, which will be in effect throughout the life of the bond, than the inflation adjustment, which will vary. Remember that if you cash out before five years, you'll pay a penalty of three months' interest. You can purchase I bonds at your bank or by visiting TreasuryDirect.


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Featured Local Company

Best Bank

678-993-5353
3770 Data Drive
Norcross, GA
http://www.bestbank.com/

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