Thanks for the reply. The problem I have with the I Bond is that I was comparing CD rates and the I Bond. I chose the bond because it appeared the rate of interest was about 2% higher than any CD. I have been investing for a long time, and am still not quite sure how I was not understanding the I Bond rate from the treasury web site. It was showing a rate over 7% when I bought it, now the calculator is showing 2%, more than just a little difference. I figured in both componants when I was evaluating the bond-fixed and variable, and I was amazed at its high rate. I am now amazed again, and can't wait to reach the 1 year mark so I can get rid of this junk!