It looks like my post on EE Savings Bonds a few weeks ago is already obsolete, as the U.S Treasury Department announced yesterday that Series EE Savings Bonds issued on and after May 1, 2005, will earn fixed rates of interest for the lifetime of the bond. You’ll basically be buying a 30-year CD with no early withdrawal penalties after 5 years.
I would write more, but it looks like MM at PFBlog has already written a piece on it that is pretty much right on. Basically, if the rates ever get really high, lock it in. At current rates, take a look, but there are probably better options out there.
By Jonathan Ping | Savings Bonds | 4/5/05, 7:28pm