Ask Terry Questions I bond vs T Bill

I bond vs T Bill

By Terry Savage on February 17, 2023 | Chicken Money

Hi Terry
I know last year you were very high on I bonds. I know the interest rate came down with the last adjustment. Are you still recommending these as an investment or are you suggesting 6 month or 12 month T Bills?

Terry Says

That depends on how long you’re willing to tie up the money. Rates on I-bonds change again in May. But if you purchase now, you get the current 6.89% rate for 6 months, before the new rate kicks in.
Like T-bills the yields will change depending on the current level of interest rates and fears of future inflation.

You can buy a maximum of $10,000 in I-bonds in one year, but there is no limit on T-bills. Minimum is $100.
Read this: https://www.terrysavage.com/t-bills-beat-cds/

Maybe do some of both?

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