Back when there was inflation or normal interest rates I bonds made sense . In those days you could buy up to 30k per year worth each individual.
I bonds had two components a fixed rate and a variable rate based on current inflation. They are similar to Tips . but I bonds are tax deferred until you sell up to 30 years.
Current return on next 6 months (rates figured in April and Nov each year.
You can only buy 10 k of electronic bonds and you can buy up to 5 k with a tax refund in paper bond.
If like me you think inflation will remain high for a good while they will be an excellent fixed income component. For young people good place for college funds ...saving for down payment on house etc. If you cash in before 5 years they charge you 3 months interest penalty. There is nothing approaching it that I am aware of for totally guaranteed principal investment . if there is no inflation of course there is no benefit. You get them online at Treasury Direct. There is no middleman or commission involved ..why you don't hear much about them .
I bonds had two components a fixed rate and a variable rate based on current inflation. They are similar to Tips . but I bonds are tax deferred until you sell up to 30 years.
Current return on next 6 months (rates figured in April and Nov each year.
You can only buy 10 k of electronic bonds and you can buy up to 5 k with a tax refund in paper bond.
If like me you think inflation will remain high for a good while they will be an excellent fixed income component. For young people good place for college funds ...saving for down payment on house etc. If you cash in before 5 years they charge you 3 months interest penalty. There is nothing approaching it that I am aware of for totally guaranteed principal investment . if there is no inflation of course there is no benefit. You get them online at Treasury Direct. There is no middleman or commission involved ..why you don't hear much about them .
