Dedicated to Deposits: Deals, Data, and Discussion

6.73% I Bond vs. Bank CD?

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At first look, an I Bond with an interest rate of 6.73% may seem like a great deal since the best CD rates aren't much above 5%. Then if you include some of the I Bond's tax advantages over bank CDs and savings accounts, I Bonds may look even better. However, there are several issues about the I Bond rate that make it less attractive.

I just recently contributed a guest article to BestCashCow describing the I Bond and how it might compare to a CD. Hopefully, it'll help you decide if an I Bond purchase at this time would be a good choice for your specific investment needs.


Comments
4 Comments.
Comment #1 by Dave (anonymous) posted on
Dave
Great comments in your article. I buy I-Bonds myself. I don't look at them as short-term vehicles, so they're worthwhile for longer term investments.

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Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the feedback. I also have used them for longer term investments. I just wished the Treasury didn't lower the fixed rate last November.

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Comment #3 by Mary (anonymous) posted on
Mary
I would like to reread the article from BestCashCow on I Bonds. However, it is no longer available from that website. Is there anyway to “reprint” the article?

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Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
I'll have to look to see if I have a copy of this that I can post. In the mean time, the bottom of this post lists some of the major benefits of I Bonds. The big advantages of I Bonds over CDs are the tax advantages.

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