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No. of Recommendations: 5
I-bonds don't appeal to him because they are 5+ year investments.

I-bonds can be cashed after 6 months and the penalty is only 3 months of interest if sold before 5 years. That's a little over 1 % now. You would still net over 3%, if you held for a year or more. I purchase them on line with my cash reward credit card and receive a 2% cash back bonus. Holding them for 6 months with the cash back bonus would still net you more than the 3-4% you're seeking. Holding a year would net more than 5%.
The credit card I use is from Farm Bureau Bank. The yield to date for I-bonds I bought last Feb is 4.82%, if I cashed them 1 Feb. With bonus that's 6.82%! Not bad for a 'no risk' investment. Tax is also defered, if desired, and the 2% bonus is tax free. In addition, I do no fee balance transfer to a credit card with a 0% intro interest and am able to 'float' an interest-free loan for more than the six months required holding period. Somewhat complicated, but worth it to me.
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