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Another question about the I-bonds:

the current 7.49% interest rate is an annual yield, no? Cashing out at six months would yield three months worth of interest, correct?

how often is the interest compounded? the article Pixy wrote indicated there was a "monthly" payment delivered upon cashing out that you receive. This leads me to believe there is a compounding factor involved here...can someone explain?

I'm just curious because I am wondering whether it would be worth my time to make a 0% APR purchase on my new credit card to get an I-bond that I could cash out before any finance charges accrued...

thoughts? and thanks for the help.

chris
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