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Hello,
I was wondering if anyone here is putting any money into US treasury savings bonds? Specifically, I'm thinking of buying 10K in EE bonds, which will double in 20 years, yielding a rate of 3.5% (EE bonds offer a current fixed rate of 0.10%, but the treasury doubles the cash in value after 20 years). I'd probably continue to do this yearly, depending on whether the doubling term remains attractive in compared to long term treasury rates vs I bond rates. It seems like a nice way to lock in greater than current (guaranteed) rates, while also a hedge against poor growth or deflation. At my current savings rate, and asset location, this would make up approximately 1/3 of my bonds.
Any thoughts? Thanks
I was wondering if anyone here is putting any money into US treasury savings bonds? Specifically, I'm thinking of buying 10K in EE bonds, which will double in 20 years, yielding a rate of 3.5% (EE bonds offer a current fixed rate of 0.10%, but the treasury doubles the cash in value after 20 years). I'd probably continue to do this yearly, depending on whether the doubling term remains attractive in compared to long term treasury rates vs I bond rates. It seems like a nice way to lock in greater than current (guaranteed) rates, while also a hedge against poor growth or deflation. At my current savings rate, and asset location, this would make up approximately 1/3 of my bonds.
Any thoughts? Thanks