Date: Sun, 13 Nov 2005 21:09:41 -0600
From: "Bucky" 
Newsgroups: misc.invest.financial-plan
Subject: Re: iBonds
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john_doe_ph_d@yahoo.com wrote:
> Perhaps someone who has followed these bonds a little more in the
> recent years could tell me, for instance, how the total return on the
> bond might change. For instance, what has been the smallest inflation
> component in recent years? Does the 1% fixed rate mean that this is not
> necessarily a good time to buy ibonds?

Some people look at the 6.73% composite and are floored. But the 1%
fixed rate is at its lowest ever, so it's not very good for long term.
Put it this way, if you had I-bonds from May 2000, you'd be collecting
roughly 9.3% this period! I think it's fine to get into some I-bonds
now, just know the fixed rate is at the lowest it has ever been, so
you'll probably be redeeming and buying later.

Here's the history of rates:
http://www.publicdebt.treas.gov/sav/sbirate2.htm