Re: savings bond?
I always thought the penalty was presumed because you don't get interest on a daily basis, but semi annually when the rates fluctuate. I believe May 15th is the date, but don't quote me there. If you cash the bond on June 15th, you just get interest until May15th. Same if you cash it out on December 15th, you don't get the benefit for the months between rate change and when you cash in, thus penalized.
Humm, this is something I need to read up on.
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