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Old 06-17-2022, 03:51 PM   #3631
Josh611
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Join Date: Dec 2010
Location: Michigan
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Quote:
Originally Posted by jcardstore View Post
Except you're locked in and it tracks CPI so when that comes down it's going to be yielding next to nothing.

The fixed rate on ibonds is 0% and you have to hold for what... 5 years before you take withdraw without penalty?

Imo I bonds only make sense if you think inflation is going up not when it's at a 40 year high.
I mean it all depends on what you're doing with the $10k. If it's going to sit in a bank earning nothing, might as well buy the bond.

Even if you take it out after first year they only take 3 months of interest. Would still give a ~7% risk free yield. Taxable none the less but still better than sitting in cash. I doubt inflation will roll over to nothing in the next 365 days.
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