No. of Recommendations: 2
Note that the rate on the I bond went up today to 7.49%. These look very attractive to me in a taxable account for reducing equity portfolio risk.

The rate of interest is established at the time of purchase and is guaranteed for 30 years.....

<snip>

The total annual limit for I bonds is $30,000 per person. Does anyone see any downside to I bonds?


Just a note, that's not a fixed rate. It's a mixture of fixed rate and inflation. 3.6% is guaranteed for 30 years. The remaining 3.82% is the inflation rate. This is adusted with inflation. It goes up with inflation, and goes down with inflation. During deflation, the I rate is zero - giving you only the fixed 3.6%.

http://www.publicdebt.treas.gov/com/comi500.htm

-Ortman
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