Quote:
Originally Posted by tophcfa
The interest rate is fixed, but the bonds principal increases based on an inflation index. When the principal increases, it is considered taxable income during the year, causing you to have to pay taxes even though no cash flow is generated from the principal accrual portion of the bonds taxable income. The easiest way to invest in them is through a dedicated I bond mutual fund with the likes of Vanguard of Fidelity.
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I don't care about mutual Funds, taxable income etc.
I only want to know if the current 6.85% on I Bonds will be good for the entire 30 years of the bond or does the Bond I currently have at that rate change at any time during the 30 years when the inflation rate goes down?