3 upvotes, 1 direct replies (showing 1)
View submission: Favorite High Yield Savings Account?
Pls tell me more about this!
Comment by Garlic_and_Onions at 10/08/2021 at 09:48 UTC
11 upvotes, 2 direct replies
They are a great US savings vehicle and not well known (probably because they aren't new and never had a big marketing campaign behind them) but are an amazing option. Wall Street Journal called them the best kept secret hiding in plain sight or something similar earlier this spring https://www.wsj.com/articles/i-bonds-the-safe-high-return-trade-hiding-in-plain-sight-11622213324[1][2]
1: https://www.wsj.com/articles/i-bonds-the-safe-high-return-trade-hiding-in-plain-sight-11622213324
2: https://www.wsj.com/articles/i-bonds-the-safe-high-return-trade-hiding-in-plain-sight-11622213324
You purchase them at treasurydirect.gov and as I mentioned, the savings are tied up for one year, but between year 2 and year 5, you pay a 3 month interest penalty if you cash in before year 5 but at this return rate, you'd still come out ahead compared to online savings, and it is rock solid safe.
You're limited to purchasing $10K a year unless you take a tax return in Ibonds. That's the only downside I can find. :)
Spread the word! It's fun to tell the banks to go F off with their ridiculous 0.5% savings while they kill us with credit card interest.