However, if I can get about the same interest rate on rotating CD's as an illiquid I- bond,I-Bonds are completely liquid after 6 months. You don't ladder I-Bonds, as you can hold them for up to 30 years.In a sense, the I-Bonds would make your cash more liquid then laddering the same funds in CD's.and given that we do not know what the future will bring, maybe the I-bonds interest rate won't be much higher than the rate of inflation.The return on I-Bond return is broken into two components - a fixed return and an inflation based modifyer. So, you'll be earning a fixed amount over the rate of inflation for up to 30 years (at least the government listed rate of inflation.) Even though I-bonds are at a good interet rate right now, maybe they will be at a less than wonderful rate in the future and then I would be stuck, so, maybe CD's are best?Most of your questions would be answered by the US Savings Bonds site:http://www.publicdebt.treas.gov/sav/sbiinvst.htmAlso keep in mind - interest on CD's will be taxed every year. Interest on I-Bonds will be tax deferred until you actually cash the bonds in.If so, any opinions on which CD's are best? Any opinions on Schwab's CD's?CD's are essentially fungible items - as all are FDIC insured. Given that, the best CD is the one which pays the most interest.-Ortman
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