Did you know that if you buy a treasury bill, such as a Series I or Series EE savings bond, at the end of the month, you get the interest for the entire month? Yep, it’s true and it’s a well known hack used by many a treasury investor. I’m not exactly sure why the government calculates it that way but that means you can actually hold a bond for 11 months and get “credit” for the full year.
For example, if you were to buy a savings bond today, you could redeem it April 1, 2009 (you can’t redeem a savings bond within a year). That’s 11 months, rather than the full twelve, because April 2008 counted as a full month even though you bought it on the last day.
If you ever intend to buy savings bonds, do so at the end of the month and double dip on the interest!
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