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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:

Also 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.


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