Ask Terry Questions EE and I savings bonds…..

EE and I savings bonds…..

By Terry Savage on March 05, 2019 | Chicken Money

I just cashed in savings bonds….paid tax on them and put them in a money market that gives returns of 2%. Now I am wondering if I should put the money in a CD that is offering 3.10%?
I want to make more money on them, and think the money market is a “safe investment” but not really sure. In the money market , I don’t have to wait 5 years and can keep adding some money to the money market. The CD has a great penalty if I touch the money before the 5 years. I was advised to stop getting the bonds and to cash them in. So I did, and feel it would be equal money to the money market rates( as the savings bonds over the years…plus it is somewhat “quicker” interest money?). I am not sure, and hope you can answer some of these doubts and questions I have. Any help, sure would be appreciated.

Terry Says

Who — wait! Who advised you to cash in Series EE bonds early???  Some of them have high base rates and are still a great investment — although I wouldn’t buy them now, under the new rates and terms!    Was the person who advised that just trying to get your money??

Then, who suggested you put your money in a 5-year CD?  Was that someone in a bank?  Someone who got a bonus for selling long-term CDs???  If you just did that, I would suggest you move at least half the money out of the CDs, and buy U.S. Treasury bills of 6 months maturity.  Click here for an explanation of how to buy Treasury bills. 

You can’t earn any higher interest than that with complete safety.

I don’t understand the rest of your question, but I wish you would have written to me BEFORE you cashed in the bonds!  Let this be a warning to others.



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