Savings Bonds Rates - Projected to go Up or Down May 1st?

[jdk]

Are savings bonds (EE and I) expected to go up or down in rates on May 1st?

 

[Rockefeller]

The Traditional EE Savings Bond is tied to five-year Treasury notes, and probably won't change much from the current 2.61%. But the rate on inflation-adjusted I Bonds could rise as high as 3.4% from the current rate of 2.19%.

 

[jdk]

Series EE is currently at 3.00% according to treasurydirect.gov

"Series I Savings Bonds To Earn 4.28%, Series EE To Earn 3.00% Fixed Rate, When Bought From November 2007 Through April 2008"

So these may go down.

I am just wondering if the fixed rate for Series I will go down from 1.2% seeing my I bonds have been outperforming EE. I just didn't want to get more I bonds for my kids college fund if they were projecting to make less than the EE bonds

 

[scottle]

If you are looking for yield and safety look at municipal bonds. Right now many of them have great yields not seen in muni's in years. Make sure you check out what you want. One reason they are a great buy is their tax benefits.