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EE Bonds vs. I Bonds
Old 01-08-2012, 10:52 AM   #1
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EE Bonds vs. I Bonds

With EE Bonds earning a fixed .6% interest, and I Bonds earning a variable 3.06% interest rate, would it make sense for anyone to invest in EE Bonds right now?

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Old 01-08-2012, 11:45 AM   #2
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Originally Posted by daystar
With EE Bonds earning a fixed .6% interest, and I Bonds earning a variable 3.06% interest rate, would it make sense for anyone to invest in EE Bonds right now?
I keep plugging away with I Bonds. I do it more as a hedge against inflation down the road, than the current yield. Remember the 3.06 is only for the this current sixth month cycle, and remember the following 6 months could possibly be 0% fixed and 0% inflation. The EE at .06% provides little value as you have to hold a year, and I can get 1% 1 year CD locally. If you plan to hold the EE bonds 20 years, they are guaranteed to double. That equates to a little over 3.5% a year plus shielding from state income tax. EE bonds held to 20 years compares very favorably to the 30 year govt bond right now. I guess it depends on a lot of factors if they hold any value for you.
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