I Bond vs Treasury bills
Is an I Bond investment better than investing in a treasury bill?
Terry Says
That depends on your time horizon for needing the money. I bond rates are currently6.89% — very tempting. But they will likely drop in 6 months as the Fed gets inflation under control. You must hold them for at least one year — and there’s a 3 months loss of interest penalty if you sell them before 5 years.
On the other hand, you can buy T-bills in 3 and 6 month maturities, and have access to the money without penalty when they mature. The rates change according to the outlook for inflation. So at some point those rates may drop as well.
Read this before buying T-bills: https://www.terrysavage.com/t-bills-beat-cds/
