With their modest-but-reliable interest rates, unique tax advantages, convenience, and income possibilities, savings bonds are excellent tools for consistent wealth-building.
Bonds typically bridge the gap between hyper-stable bank accounts offering next to no return on your money and equities like stocks providing higher returns for higher risk.
For several reasons, many investors prefer to keep a portion of their portfolios in bonds. Bonds facilitate cash flow into a portfolio as an investment that primarily offers income instead of growth.
Series EE bonds last for 30 years. They have a guaranteed fixed interest rate for the first 20 of those 30 years. During the final ten years of the term, the interest rate on EE bonds may change but won’t necessarily do so.
The most significant difference between EE and I bonds is how they earn interest. While EE bonds earn a fixed rate for the first 20 years, I bonds earn variable interest rates tied to inflation.
The most significant difference between EE and I bonds is how they earn interest. While EE bonds earn a fixed rate for the first 20 years, I bonds earn variable interest rates tied to inflation.