I am planning to cash a 12/2021 Series I Bond to pay my property taxes rather than using some 5% money market fund or selling stock. The calculator shows 2.96% rate. I will lose 3 months interest as the early penalty.
Does it make sense to wait until July to cash it? Will I get some interest posted on July 1st that I would not get cashing tomorrow?
Does my general plan of ditching the low yielding Series I Bond to protect higher earning T Bills make sense? I realize I will give up some tax defered compounding but the extra 2% would seem to make up for that.
I also have a 1/2022 bond. Both seem to have a fixed rate of zero. This bond should recalculate interest on 7/1.
I should also add that I have very little in money market although I do have a weekly T Bill roll but in my IRA. So beyond taxes I could use the other bond for living expenses to allow rolling T Bills.
Does it make sense to wait until July to cash it? Will I get some interest posted on July 1st that I would not get cashing tomorrow?
Does my general plan of ditching the low yielding Series I Bond to protect higher earning T Bills make sense? I realize I will give up some tax defered compounding but the extra 2% would seem to make up for that.
I also have a 1/2022 bond. Both seem to have a fixed rate of zero. This bond should recalculate interest on 7/1.
I should also add that I have very little in money market although I do have a weekly T Bill roll but in my IRA. So beyond taxes I could use the other bond for living expenses to allow rolling T Bills.