IBONDS or CDS??

[Snoopy2645]

If I am understanding this correctly ibonds are better than cds right now or am I missing something?? Just want to check considering moving the kids money to ibonds instead of a cd just want to make sure I understand it before I do

[terry1156]

Re: IBONDS or CDS??

If I am understanding this correctly ibonds are better than cds right now or am I missing something?? Just want to check considering moving the kids money to ibonds instead of a cd just want to make sure I understand it before I do

Ibonds are better than CDs for the next 6 months, but it's anyone's guess what the rate will be after that - it could go as low as 1% in a worse case scenario. Also, you have to hold onto Ibonds for 1 year minimum, but if you want to cash them out before 5 years, you lose 3 months of interest.

[genchan]

Re: IBONDS or CDS??

I asked this in another thread, but will ask again here. Is it the base rate or the inflation rate that is most important when looking at the i-bonds?