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.