Savings bond rates jump, making them even more attractive

Inflation protection is the highlight of the day when it comes to U.S. Savings Bonds.

This morning, the Treasury Department announced the new rates for savings bonds issued from November 1st, 2008 through April 30th, 2009. With that announcement came a surprise to the 45 million Americans who own or continue to purchase this old but safe investment. In a time when spending is slowing and the Fed cut rates by 50 basis points only a couple of days ago, the I bond rate has jumped to 5.64% (up 0.8% from the previous six-month period), while the EE bond rate dropped to 1.30% (down a modest 0.1%).