EE and I savings bonds…..
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.