Ibonds vs. On line savings
RE: Chicken Money
Hi Terry,
I have several i bonds from 2021, 22 and 23. When I look up the current status , the interest rate column shows 3.37% on one and 2.96% on the other three. I also have an online savings account paying 5.05%. I have never understood how to interpret the info from Treasury Direct. Would I not be better off cashing the i bonds and depositing the proceeds to the savings account? (I understand that taxes would be due.)
I feel that there’s something I’m missing, but I can’t figure out what it is.
Thank you for your anticipated reply, and all of the good info on your site and on WGN. I appreciate it 🤩.
Terry Says
I bonds carry a fixed base rate and a semiannual adjust, this the difference in bond yields.
All yields will be coming down now. It doesn’t make sense to take the penalty and cash them in at this point.
