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/biz/ - Business & Finance

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309838 No.309838 [Reply] [Original]

Since savings and CD rates are shit, how does /biz/ feel about i-bonds? They currently yield 1.38% - and the penalty for early withdrawl is only 3 month's interest.

>> No.310001
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310001

Fun Fact: EE Bonds are guaranteed to double in value in 20 years, regardless of the stated interest rate. This gives them an effective rate of 3.5% if you hold them.

The problem with both is that you can't resell. You might want to think about TIPS or Notes if you want gov't securities.

>> No.311121

>>310001
>holding bonds for 20 years
NOPE.

Rates will go up eventually.

>> No.311129

>>310001

>Maximum Purchase: $10,000

Ah, so that's why there isn't an arbitrage to be had. Oh well.

>> No.311134

>>309838
Government Bonds are too conservative for me, unless I was trying to dodge taxes in which case if I had to choose one I would choose i bonds.

>> No.311139

>>309838
op where did you get that pic?

>> No.311538

>>311139
I can't remember. It was either /a/ or one of the booru sites.

>> No.312570

>>311129
>>310001
20 year rates are around 3%. The tradeoff for the minimum 3.5% yield is giving up 20 years worth of liquidity

>> No.312702
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312702

>>312570
>20 years worth of liquidity