I - Bonds

Does anyone mess with these?
Only $10k allowed per year


so a fixed rate that is essentially 0 and a variable rate that goes with inflation. how is this any different from tips? anyways, what i know is us govt bonds are garbage. id rather have cash for liquidity and take the inflation hit w/o any interest.

If I understand correctly, these I-bonds seem to be puttable at 100% of principal (regardless of where interest rates are) after 1 year. Seems like a reasonable vehicle to park cash beyond immediate liquidity needs (<1 yr) and get a rate better than a savings account?

Here are some additional details:

  1. current yield: 3.54%
  2. Annual max - $10k
  3. State and local tax-free
  4. federal taxes are deferred until the bond is sold
  5. must be held at least one year
  6. if redeemed before 5 years, lose 3 months of interest