An article by Ravi Nagarajan regarding using Series I savings bonds as an alternative to one year Treasury Bills appeared today exclusively on GuruFocus.com. Read this post for a link to the article on GuruFocus.com.
With one year Treasury Bills yielding 0.35% and even the highest yielding one year Certificate of Deposit paying under 2%, investors are searching for higher returns on idle cash while maintaining safety of principal. There have been very few options available for investors in recent months and the luxury of holding cash has meant suffering negative real returns. An interesting opportunity now exists for investors to obtain higher yields for small amounts of cash.
The Bureau of the Public Debt has announced an earnings rate of 0% for Series I Bonds issued between May 1, 2009 and October 31, 2009. The fixed rate (also known as the real return) of new Series I Bonds