4 ms·
Actually Series I bonds are negative real yield because the interest is taxed federally.
by CameronNemo 5y ago
Actually Series I bonds are negative real yield because the interest is taxed federally.
- kube-system 5y agoWhich is still better than the savings accounts that the comment above was comparing them to, which are taxed federally and often locally.
- gkuan 5y agoAnd if one happens eventually come under the IRS Form 8815 MAGI cutoff, it has a federal income tax exclusion for education [1]. Consistent with what you say, it is exempt from state income taxes, which savings accounts typically aren't. [1] https://treasurydirect.gov/indiv/planning/plan_education.htm https://treasurydirect.gov/indiv/planning/plan_education.htm
- imtringued 5y agoNegative interest rates on cash would solve this problem by getting rid of inflation.