With the falling rates of bank CDs, I have been hearing more about Series I US Savings Bonds as investment opportunities. Do you believe these are worthy investments? –Chris, VT
Series I bonds are a low-risk, liquid investment. They are worthy investments and may be appropriate for a percentage of your overall diversified portfolio. Current rates are 5.64% through April 30, 2009 and there are some tax benefits, too. Interest earnings are exempt from state and local income taxes but subject to Federal income tax.
You can purchase them at most local financial institutions, through payroll deduction or via Treasury Direct at http://www.treasurydirect.gov/
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