Quote:
Originally Posted by kork13
That obviously doesn't bring as high of a return as the other options
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But remember that the CD rate is fixed for the term. The I-bond rate adjusts every 6 months. If inflation rises, as it has to since it is sitting at zero right now, the bonds become more valuable. Also, the I-bonds have tax advantages over the CDs.
To deal with the fact that you can't redeem an I-bond in the first year, you could put some money in CDs and some in I-bonds so that you can access funds if needed. Once the first year is up on the initial I-bonds, you can move the rest of the money into them.