They’re very safe (and conservative), and compared with a number of other safe investments, the yield isn’t too bad. As of May 1, Series EE bonds earn 3.5%. That’s about the same as a one-year certificate of deposit, beats money-market deposit accounts and certainly is more than the typical savings or interest checking account.

The current combined rate for I bonds is a respectable 4.8%. This beats many other conservative investments.

Savings bonds are also free of state and local income taxes, so that adds to your yield, too. Check out the effect on the tax advantages calculator.

But keep in mind that you can’t redeem savings bonds for the first year. And if you redeem them in less than five years, you lose the most recent three months’ interest.

Keywords: Savings, Bonds, Local, Income, Tax, Yield, Interest, Safe, Deposit

Filed under: Cash Savings Bonds Article by admin