4 ms·
Yes, I know that. EE Bonds are not intended to be that liquid, they are meant to be held to maturity.
by phonon 10y ago
Yes, I know that.
EE Bonds are not intended to be that liquid, they are meant to be held to maturity.
- umanwizard 10y agoOkay... so they're higher risk than a savings account.
- phonon 10y agoWell, depends on what "risk" means...default risk? Inflation risk? How about currency risk? What if the dollar gets weaker? You need a totally different hedge for that...a savings account would not help.
- phonon 10y agoYou also nicely elide that since a savings account currently averages a 6 basis point APY[1], it's already giving an inflation adjusted negative return. So a savings account has gone past the "risk" stage to the "losing money" stage. [1] https://www.fdic.gov/regulations/resources/rates/ https://www.fdic.gov/regulations/resources/rates/
- phonon 10y agoIn any case, my answer was only half-serious. But you wanted to know "What gives higher returns but near-zero risk?" and assuming by "risk" you meant "default risk" there you go....a high interest low denomination savings instrument backed by the federal government.