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When looking at I-bonds one should compare relative to savings accounts and 1 year CD's. Best interest rates for CD's/savings are around 0.85%APR.

I plan to pull the money out of I-bonds after 12-months, so lose last 3-months of interest. So overall interest rate will be (1.76+0.5*the unknown interest rate).

It looks like this will beat the 0.85% rate available elsewhere.

Also I-bonds are exempt from state taxes, which are around 10% in California.

So for e-fund/cash, I-bonds look like the best deal at the moment especially for high income state/local tax locations.

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