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Originally Posted by jmjj215
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.
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Buying smaller chunks has nothing to do with diversification. Diversification means you have different types of investments or savings. So.... holding a mutual fund and a mix of bonds like the i-bond is diversification.
Now you could look at it as a diversification of rates but this instead is called laddering. You hold bonds or CD's with different issuances and maturity rates.