Better than CD/Savings account rates with US Savings Bonds

Right now type I bonds pay 1.76%, can be cashed in after a year with a 3/month interest penalty, and cashed in after 5 years with no penalty.

The rate is unlikely to go down much, it is essentially equal to the rate of inflation, though in the future it could be inflation+.

This is a MUCH better deal than the normal government bonds. For example, 10 year bonds pay under 1%, and could decline in value if rates rise by a fair amount if you need to get your funds sooner.

The only catch is that you can only buy 10K a year per SSN. Otherwise pretty much all of our trillions in debt would be I-Bonds since they pay so much more and are more flexible. Also nobody would ever buy a 1 year+ CD and market rates.

Someone with a lot of money sitting making nothing in savings account or shorter CDs could end up making several thousand more over time. 1.76% may be low, but it sure beats the current 1-year rate that is closer to 0.1%.

Finally, these bonds are exempt from state and local income taxes.

Link here:
https://www.treasurydirect.gov/in...s_ifaq.htm