Time to cash in July issue I Bonds

I cashed in the I Bonds that I bought in July 2003 today. Based on the criteria I discussed in an earlier blog entry (Should You Sell Those Savings Bonds?), today was the day to sell my July issue bonds.

Since I haven't held them for the required minimum of five years, I had to forfeit the last three months worth of interest. I cashed them in today because I end up sacrificing three months worth of interest at 2.11%, while keeping all interest earned at the previous rate of 6.83%.

Since I have started moving some cash to 6% CDs while they are still available, I will be cashing in all of my I Bonds over the next few months due to the low rates that they are currently earning. My August 2003 I bonds are next in line and will be cashed in on November 1st.