Hi All,
I've been reading about I-Bonds which currently have a fixed rate of 0.0% and an inflation rate of 3.54%, and considering it as an alternative to CDs (which have terrible interest rates right now, and for the foreseeable future).
In my reading, I understand that an individual can purchase up to $10k per year, and an entity (which includes revocable trusts) can purchase up to $10k per year; a total of $20k per year. Does that sound correct?
It's also my understand that "I-bonds can be held for as little as one year or as long as 30 years, but if they are sold after fewer than five years, the holder sacrifices the last three months worth of interest."
I really don't see any downside to this as a form of inflation protection...but perhaps I'm missing something that I need to consider. I would appreciate any feedback. Thanks!
I've been reading about I-Bonds which currently have a fixed rate of 0.0% and an inflation rate of 3.54%, and considering it as an alternative to CDs (which have terrible interest rates right now, and for the foreseeable future).
In my reading, I understand that an individual can purchase up to $10k per year, and an entity (which includes revocable trusts) can purchase up to $10k per year; a total of $20k per year. Does that sound correct?
It's also my understand that "I-bonds can be held for as little as one year or as long as 30 years, but if they are sold after fewer than five years, the holder sacrifices the last three months worth of interest."
I really don't see any downside to this as a form of inflation protection...but perhaps I'm missing something that I need to consider. I would appreciate any feedback. Thanks!