Posts with keyword 1-year-cd→
Buy I Bonds by April 30 to earn 4.28–6.06%
I just came across this Savings Bond Advisory
:
Given that the current fixed base rate is 1.20%, it would much better to invest in I bonds this month rather than waiting until May 1 or later. I bonds you purchase today will earn a composite rate of 4.28% for six months, followed by six month of 6.06%. These are much higher rates than are available in bank CDs or even other US Treasury securities
“Real” and “nominal” interest rates
(This post is a part of the series on Basics of Finance and Investing.)
You have bought a 1-year CD for $10,000 at 5% interest rate. After one year you collect $10,500 – a gain of $500. What is your real gain? This depends on what $10,000 can buy one year later, compared to what it does now.
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