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Retirement Discussions / FIRE Wannabees
|Subject: Re: Fire Update 2012||Date: 1/21/2013 5:07 PM|
|Author: whyohwhyoh||Number: 4977 of 5048|
When looking at I-bonds one should compare relative to savings accounts and 1 year CD's. Best interest rates for CD's/savings are around 0.85%APR.
I plan to pull the money out of I-bonds after 12-months, so lose last 3-months of interest. So overall interest rate will be (1.76+0.5*the unknown interest rate).
It looks like this will beat the 0.85% rate available elsewhere.
Also I-bonds are exempt from state taxes, which are around 10% in California.
So for e-fund/cash, I-bonds look like the best deal at the moment especially for high income state/local tax locations.
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