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The $10k limit makes I-Bonds mostly suitable for parking emergency funds. If you’re saving up more money (for buying a house etc), a savings account is still th

by ra7 5y ago

The $10k limit makes I-Bonds mostly suitable for parking emergency funds. If you’re saving up more money (for buying a house etc), a savings account is still the best bet. I’m in this position and the interest rates are frustrating, but everything else is very risky IMO.

imtringued 5y ago
It sounds like I-Bonds are not meant to subsidize the poor instead of the rich which is a nice change for once.
JumpCrisscross 5y ago
> If you’re saving up more money (for buying a house etc), a savings account is still the best bet Open a TreasuryDirect account and buy bills, currently yielding about 50 bps for 4 weeks [1]. Or search out a high-yield online (FDIC insured) savings account, presently paying up to 80 bps [2]. [1] https://www.treasurydirect.gov/instit/annceresult/annceresult.htm https://www.treasurydirect.gov/instit/annceresult/annceresul... [2] https://www.bankrate.com/banking/savings/best-high-yield-interests-savings-accounts/ https://www.bankrate.com/banking/savings/best-high-yield-int...
- ra7 5y ago
  Thanks for the recommendation! I’ve never bought bills, I will check it out. I use Marcus savings which just increased its rate from 50 bps to 60 bps yesterday. (PS: I always search for your comments in any finance-related threads as I learn a lot from them. Just an appreciation!)
  - JumpCrisscross 5y ago
    Thanks!
  - aklein 5y ago
    You can buy CDs from a Vanguard brokerage account that are yielding about 50% more than the equivalent durations offered at gsbank/Marcus: https://personal.vanguard.com/us/FixedIncomeHome https://personal.vanguard.com/us/FixedIncomeHome
    - doktorhladnjak 5y ago
      Brokerage CDs are a pain if you need your money back early. Unlike a normal CD, which you can redeem early for a penalty, you can only sell brokerage CDs on a secondary market. They trade at huge discounts, and you have to pay fees to involve a broker because they are not liquid enough to trade yourself. At least this is how it was when I tried to do this a few years back.

by ra7 5y ago

imtringued 5y ago

It sounds like I-Bonds are not meant to subsidize the poor instead of the rich which is a nice change for once.

JumpCrisscross 5y ago

> If you’re saving up more money (for buying a house etc), a savings account is still the best bet Open a TreasuryDirect account and buy bills, currently yielding about 50 bps for 4 weeks [1]. Or search out a high-yield online (FDIC insured) savings account, presently paying up to 80 bps [2]. [1] https://www.treasurydirect.gov/instit/annceresult/annceresult.htm https://www.treasurydirect.gov/instit/annceresult/annceresul... [2] https://www.bankrate.com/banking/savings/best-high-yield-interests-savings-accounts/ https://www.bankrate.com/banking/savings/best-high-yield-int...

ra7 5y ago
Thanks for the recommendation! I’ve never bought bills, I will check it out. I use Marcus savings which just increased its rate from 50 bps to 60 bps yesterday. (PS: I always search for your comments in any finance-related threads as I learn a lot from them. Just an appreciation!)
- JumpCrisscross 5y ago
  Thanks!
- aklein 5y ago
  You can buy CDs from a Vanguard brokerage account that are yielding about 50% more than the equivalent durations offered at gsbank/Marcus: https://personal.vanguard.com/us/FixedIncomeHome https://personal.vanguard.com/us/FixedIncomeHome
  - doktorhladnjak 5y ago
    Brokerage CDs are a pain if you need your money back early. Unlike a normal CD, which you can redeem early for a penalty, you can only sell brokerage CDs on a secondary market. They trade at huge discounts, and you have to pay fees to involve a broker because they are not liquid enough to trade yourself. At least this is how it was when I tried to do this a few years back.