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URL:  https://boards.fool.com/and-i-bonds-are-a-horrible-deal-right-now-why-23457822.aspx

Subject:  Re: Keep or Sell? Date:  12/21/2005  1:04 PM
Author:  jrr7 Number:  7371 of 14292

And I-bonds are a horrible deal right now,

Why?

The fixed rate is extremely low. Even if you are in a high-tax state the I-bond will probably lose to a ladder of bank CDs. If you really need inflation protection, buy TIPS -- yes you have a little bit of interest rate risk to your principal, and yes there are some taxes to pay, but TIPS (fixed rate ~2%) look like such a better deal than I-bonds (fixed rate 1%).
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