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Are you reading what you're replying to? Series EE bonds are guaranteed to double your investment, a return of ~3.5%, if held for 20 years.

If you hold for 19 years, they are, as you point out, a terrible investment. But the 20 year yield is decent, for a low risk product, in today's market.

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I feel like I'm taking crazy pills. I said you make a rate based on the market return (as stated on the treasury site). I also said the additional return you get is based on having it be non-transferrable, and in the case of the annualized 3.5%, 20-year term, severely illiquid asset. That's also true. I think the risk of illiquidity is major risk, and I don't at all agree they are decent investments for that reason. I realize this is a zombie thread but can't help but reply. Just because there are other, also terrible, low risk debt products in today's market doesn't make this one reasonable. The value of an investment has to be measured based on what you're getting out of it, not just relative to other investments. That's why I remarked on being better to be in cash than bonds: bonds have a huge actualized and opportunity risk relative to their yield.

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