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Comment by anonAndOn | Hacker News Reader

You can only deposit 10k/yr but how does 9.62% sound?[0]

[0]https://treasurydirect.gov/indiv/products/prod_ibonds_glance...

To add to this for next year, you can also purchase $5k more with a tax refund, for a total of $15k per year. A basic strategy is to plan ahead and over pay with your final paycheck of the tax year by updating your W-4 to withhold more to enable a tax refund if you weren't already expecting one.

To add for those that are married and/or have kids then everyone in the family can buy 10k, a trust can buy another 10k, and if you have a small business that can buy 10k.

That's not emergency fund material since there are big penalties for early (pre-12 months) withdrawal.

If you buy 10x $1000 (or 20x $500) bonds and cash out less than the full amount over the course of a year, you'll still come out ahead of whatever interest $BANK was going to pay you for the same funds in your savings account.

It's not a good emergency fund at first, but if you roll a few years into bonds then it can act as your fund after a few years.

The part of this that escapes me is that after a certain point one would more than likely have been, by historical accounts, better off the invest in equites. Then again, I am more of a proponent for emergency plans instead of just emergency funds.

However, if one wants to hold a portion of bonds and a sub-portion of said bonds happen to be I-Bonds, then I see no issues with that.

I’d agree that long term you’d be better off with more typical investment strategies. I-bonds are good right now, but as the bulk of any young persons investment it wouldn’t make sense. Savings rates have been low for some time now so I-bonds can serve a role for emergency funds if you can get them to older than 12 months safely.

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