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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%). C

Can you give me some idea of what level of interest rate risk you are discussing? I really know nothing about TIPS.

Between this risk and taxes, which I don't expect to owe even when I cash in my I-bonds given that they'll be put towards our boys' college education, I don't see how a 1% increase in fixed rate is worth it.

grateful to have a significant cache of I-bonds with a 3.5%+ fixed component
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