I half-started a whimsical intro, but have more pertinent priorities to attend to. I’m sure one of the two people that ever reads this things was looking forward to being disappointed. Guess you’ll just have to wait for another time to experience how your wife feels twice a week.

We aren’t yet in a position to get deeper into Bonds, even casually off-the-cuff. That’d just be irresponsible. However, myself and all of the Rockydennis Presents Crew would be remiss if…..what?

… Yes, it is just me. I don’t see what that really has to do with….OH RIGHT

SERIES I BONDS 7.2% from Nov 2021 - Apr 2022. So if you buy any in that timeframe, you’ll get that 7%.

SERIES EE BONDS - 0.10% for the same period. YEP, that’s right, it’s only .08% away from being as terrible as your bank.

Series I bonds are issued with a fixed rate + variable rate. It’s a hybrid rate.

Series EE bonds are issued with a fixed rate. Which is currently 0.10%.

Series JUST KIDDING THERE ISN’T ONE. Floating Rate Notes (FRN’s) do what you’re about to ask about.

Just to be sure, we’re going to copy/paste some internet definitions to see how close we were.

What Is a Series EE Bond?

The Series EE Bond is a non-marketable, interest-bearing U.S. government savings bond. These bonds are guaranteed to at least double in value over the typical 20-year initial term. Some Series EE bonds have total interest-paying lives that extend beyond the original maturity date, up to 30 years from issuance. Coupon rates for Series EE Bonds are determined at the time of issuance and are based on the percentage of the long-term Treasury rates.

It goes on, but to be clear, if the interest alone does not produce double the face value, the US Government makes up the difference at maturity, typically 20 years. You can get 30 year bonds that will continue paying interest, so that’s kind of cool. Or, would be if the rates were better.

Series I U.S. Savings Bonds

Series I savings bonds are a relative newcomer, having been introduced in 1998.12 Unlike EE bonds, Series I bonds don't come with a guarantee to double in value over 20 years. Instead, Series I bonds are issued for a period of 30 years and have a rate of return that is fixed for the life of the bond plus an inflation-adjusted interest rate.

The adjustable rate is revise semi-annually, in May and November, and is based on the Consumer Price Index for All Urban Consumers (CPI-U). This CPI figure takes into consideration the products purchased by nearly 90% of the American population and is considered a better gauge of consumer spending. Series I bonds purchased during the six months ending October 2021, are paying 3.54% interest.

So really the only difference is that with Series I you might not double your investment (though most likely you will substantially exceed that amount). The fixed rate for Series I is still presently 0.10%, same as series EE.

Just to point out, in case you’re like me and immediately start planning for the day rates go back to near-zero, these are SAVINGS bonds. You can’t trade them. Regular Government bonds can be traded, but not the EE and I series savings bonds. Also, unlike regular bonds, you don’t miss out on any potentially profitable moves because there’s no moves you can make. Cash out early, I guess, but that’s dumb. I’d be really interested to see a viable strategy that involves cashing your bonds early.

Point being, savings bonds are a super safe investment that don’t punish you because you don’t know what you’re doing. Yes, friends, you can tell the Treasury to shut up and take your money all day without unforeseen consequences!

We cannot predict the future, but at this time it is recommended that you head to treasurydirect.gov and buy Series I savings bonds. You future self will thank you.