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Originally Posted by baselle
First of all, I-bonds beat out ED/ING interest rates even when the fixed rate was truly crappy at 1.0%. I know, because that's when I bought them.
The other thing is you really don't want to buy in a "large chunk" IMHO. Buying a large chunk o'savings bond means that you're redeeming a large chunk o'savings bond which means that you are paying taxes on the interest of a large chunk o'savings bond. And locking in something means a bit less when the rate is set for 6 months at a pop. Why not space your large chunk into 6 medium-sized chunks? 
Also, another time tested trick is to buy consistently, month after month. When you have enough bonds that are older than a year, decide on the basis of the fixed rate whether you want to redeem them and buy new bonds. For instance, if the November fixed rate is going to 1.3%, I'm seriously thinking of redeeming my fixed rate 1.0% bonds to buy the 1.3%. |
Isn't the interest fed/state tax free?
By buying in smaller chunks you're "diversifying" in a sense - sounds good down that avenue also.