Sunday, November 27, 2005

I Bond, one way to beat inflation

You can say I can finally sleep without the worry of mounting inflation.

I-Bond, wihich you can buy at www.publicdebt.treas.gov, at no additional fee. The interest will be 1% higher than inflation rate. From now until April 2006, it's 6.73%, which is twice of what I am getting from ING Direct.

 

It's also free from local (state) tax and deferrable for federal tax.

 

Sounds too good to be true? Here's the catch. If you redeem I-Bond within the first 5 years of issurance, you lose 3 months interests.

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