Floating Bonds

Better deal from the Treasury

When it comes to investing, few buys have been as disappointing as U.S. savings bonds. Since the program was set up in 1935, some $258 billion has been poured into the bonds. But because of inflation, bonds redeemed in recent years have been paid off in dollars worth much less than those invested. Though a yield of 9% has been available on EE series issues since 1981, sales have been slow.

Last week the U.S. Treasury Department unveiled a new, potentially higher-yielding certificate designed to help lure savers back to bonds. The new bonds, offered in denominations of...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!