pygmypony
Well-Known Member
i just put a little bit of our savings into one of these. i don't think many people realize these even exist, but it's a pretty sweet deal
- 7.12% interest for the next 6 months
- the rate changes based upon CPI every 6 months. the next rate change is in April
- you can purchase up to $10K / calendar year / individual (so you and a spouse can buy $10K each)...and you can buy one in December, and another in January and still get that sweet 7.12%
- you can put another $5K of your Fed Tax refund toward them as well
- they earn interest for 30 years
- you cannot cash out before 1 year
- after 1 year, if you cash out prior to 5 years, you forfeit the last 3 months of interest
- after 5 years, you can cash out penalty free
- oh, and state and local tax free, and fed tax free if you use proceeds for higher ed - and you don't pay taxes until you cash out
I bonds — TreasuryDirect
www.treasurydirect.gov