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So you investment geniuses out there...

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kyzen

Golden Member
I'm looking for somewhere safe to stick a little bit of my spare cash for the next few years. I Bonds from the treasury right now are at a 5.64% interest rate.

So, I'm curious:

1) Given the state of the economy and the upcoming stimulus package, can I expect the interest rate to plummet when they revalue the I bonds on May 1st? Go up? Stay about the same?

2) Do E/EE bonds gain interest based off the cost of the bond (Say, $25), or off the face value of the bond ($50)?

3) Between the 2 (E/EE and I), which is the better investment option?

4) Are there any other *safe* short term (3 years minimum, cashing out if I need it to buy a house at that point, otherwise 5-10 years) places to put my money? I'm not talking much here right now; I'd be surprised if I hit the $5k annual limit on I bonds. I'd like more interest than savings accounts typically offer, but I also don't want to have my money totally locked up for any particular period of time - with bonds I'm OK sacrificing 1 quarter's interest to cash out after a year if I really need to.
 
I know you don't want to hear this, but if I had any extra cash lying around I would be looking for good companies on the cheap...
 
i am sitting on cash right now...if you willing to take risk you can do it but you will have to play with short...and you better know what you're dong or you can lose your shirt.
 
Originally posted by: looker001
i am sitting on cash right now...if you willing to take risk you can do it but you will have to play with short...and you better know what you're dong or you can lose your shirt.
Click to expand...

That's the thing; I'm not willing in taking any risks right now 🙂
 
Originally posted by: looker001
i am sitting on cash right now...if you willing to take risk you can do it but you will have to play with short...and you better know what you're dong or you can lose your shirt.
Click to expand...

You better stock up on shirts.

 
Originally posted by: kyzen
I'm looking for somewhere safe to stick a little bit of my spare cash for the next few years. I Bonds from the treasury right now are at a 5.64% interest rate.

So, I'm curious:

1) Given the state of the economy and the upcoming stimulus package, can I expect the interest rate to plummet when they revalue the I bonds on May 1st? Go up? Stay about the same?

2) Do E/EE bonds gain interest based off the cost of the bond (Say, $25), or off the face value of the bond ($50)?

3) Between the 2 (E/EE and I), which is the better investment option?

4) Are there any other *safe* short term (3 years minimum, cashing out if I need it to buy a house at that point, otherwise 5-10 years) places to put my money? I'm not talking much here right now; I'd be surprised if I hit the $5k annual limit on I bonds. I'd like more interest than savings accounts typically offer, but I also don't want to have my money totally locked up for any particular period of time - with bonds I'm OK sacrificing 1 quarter's interest to cash out after a year if I really need to.
Click to expand...

regarding 2), ee bonds gain interest off the cost (say $25), which is added to the value of the bond, until it reaches the face value (say $50). note that this is a zero coupon bond. your never get an interest payment, your bond just becomes more valuable.

i dont know the rate ee bonds are paying right now, but i dont think they're as good as the 5.64% you quoted for i bonds. and even though there's a penalty for cashing in an i bond prior to 5 years, i think they are still your best bet of the two for a short term investment.
 
i'd say the best place right now is food and water. go for a 3 month supply. then try to hit a year supply.
 
i-bonds. buy w/1.4% cashback credit card. hold the minimum 6months. take the 3month penalty and cash in.
profit
 
i thought you could not buy ibonds with credit cards anymore. that golden egg was like 5 years back when you could make easy money that way.
 
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