currently the CD rates for a 5yr term is arnd 4.5%+. From what little I understand of bonds, the interest rate does not vary with the face value. but the good thing abt savings bonds are that u can defer the tax until u encash the bonds and u may get exempt from fed tax if u use it for education purposes (people getting married - kids are not far way... or if ur still doign a double PhD or a MBA, whatever...). There are also exempt from state taxes... I couldn't determine if CDs have any such benfits.... Also seems like u can keep adding to the initial investment throughout the period, this could be a nice option... does the CD also provide this? appart from investing, u also want to put away things so that u don't spend it away when u can lay ur hands on them... I'm sure many of u identify with this... On Sun, 28 Apr 2002, Radhesh Mohandas wrote: > Kini, > For 2-3 K state taxes are not a huge numbers. So u >may be able to find better rates on CD's. Currently >the bond rates are 4.4% and going down. Either case you may be able to get >1-2% more on tying down your money. It this is a considerable portion of your >wealth, I would not recommend you to buy bonds. Bcoz - you may have some >immediate expenses where u might need the money - eg: buy a car, marriage, buy >a home .. in the next 10 yrs. >If you are an extremely busy person, or going out of US for a long time, then >bonds will be a predictable investment. But if you can devote some time for >your >personal finances, you may be better off with stocks and mutual funds. > >Boyz, > Is there any other advantage of having bonds - can they be used as > collaterals? Are there other types of >competative bonds - other than US bonds? > >-Cheers, >Radhesh >-- > >On Wed, 24 Apr 2002 02:10:26 > kiran nagaraja wrote: >> >>chax,boyz >> if I want to put away some amount 2-3K for a long period 5-10yrs, so that >>it just accumulates interest, what would be the best option, like the desi >>Indira Vikas Patra... the Savings bonds seem to be the right option, are >>there any other? >> >> >> >>On Tue, 23 Apr 2002, Kiran Srinivasan wrote: >> >>> >>>Rod, >>> You can buy US Savings Bonds online or from some >>>banks. >>>To get the details/buy the site is... >>>www.savingsbonds.gov >>>Look out for the series-I bonds... >>> >>>If you are planning to buy a large amount (5K and >>>greater) it is better to go to a bank to get them >>>(safer) and u get a receipt from the bank in >>>addition... >>> >>>cheers, >>>Kirik >>> >>> >>> >>>--- Radhesh Mohandas <financerod@xxxxxxxxx> wrote: >>>> >>>> Hi NS, >>>> >>>> Can you send a detailed message to the list as to >>>> how you went about investing in the US Bonds, the >>>> sites that you used and the details of how one can >>>> buy these bonds? >>>> >>>> Cheers, >>>> Radhesh >>>> >>>> >>>> See Dave Matthews Band live or win a signed guitar >>>> >>>http://r.lycos.com/r/bmgfly_mail_dmb/http://win.ipromotions.com/lycos_020201/splash.asp >>>> >>>> >>> >>> >>>__________________________________________________ >>>Do You Yahoo!? >>>Yahoo! Games - play chess, backgammon, pool and more >>>http://games.yahoo.com/ >>> >>> >> >> >> > > >See Dave Matthews Band live or win a signed guitar >http://r.lycos.com/r/bmgfly_mail_dmb/http://win.ipromotions.com/lycos_020201/splash.asp > > >