The Clark Howard Podcast 05.22.24 An Update On Series I Savings Bonds / No-Show Fees
May 22, 2024
Discover the benefits of new Series I Savings Bonds with higher interest rates. Learn how to avoid the latest no-show fees that are making headlines. Get insights on ways to save money on mattresses and discuss the implications of Vanguard's new fee structure.
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Why Buying New Series I Bonds Pays Off
- New Series I bonds bought now pay inflation plus a fixed 1.30% premium for 30 years.
- Exchanging older I bonds for new ones can be worth forfeiting three months' interest to capture that extra yield.
Consider Cashing Old I Bonds To Rebuy New Ones
- If you bought I bonds within the last 5 years consider cashing and rebuying to get the new bond terms.
- Accept losing three months' interest now to earn the higher long-term 1.30% premium on future resets.
Clark's Long-Held I Bonds Still Paying
- Clark recalls owning Series I bonds from the late 1990s that still earn strong returns and he'll hold them 30 years.
- He compares that era's favorable terms to today's I-bond cycle differences.