Just thought I’d mention that I used TreasuryDirect today to purchase another $5,000 of Series I savings bonds. If you buy them by the end of April, you can lock in an investment that will get you about 3.08% APR over 11 months. The deadline is fast approaching, and I didn’t want to cut it that close. More details here.
Since the interest on savings bonds is exempt from state and local taxes, based on my tax situation that will bring my tax-equivalent yield to over 3.5%. Not too shabby. I might buy some more, as I think it’s a nice place to store emergency funds – which I see as a permanent cash allocation which I hope not to use – as long as you can wait out the initial lack of liquidity over the first 12 months.