Cash in I Bonds for CDs?

[Molly]

Thanks - That was very helpful. I have trouble calculating though, since the IBond rates change every six months. I will keep an eye on interest rates, and if the gap becomes bigger in favor of the CDs, I may switch at that point.

[jp1]

Thanks - That was very helpful. I have trouble calculating though, since the IBond rates change every six months. I will keep an eye on interest rates, and if the gap becomes bigger in favor of the CDs, I may switch at that point.

I agree that the regular change in I Bond rates complicates things since you can't predict the future i Bond rate. My guess is that it's going to keep drifting down. But that's just a guess and I have no idea how much. However, if it keeps sliding down then CD rates will likely do the same, but that won't matter if you've locked in a good rate for several years. I've got some money in a high interest savings account that is currently paying just over 4% but that rate changes month to month, so it is also likely to go down and since it's just a standard savings account that rate is not locked in beyond the current month so who knows what the "right" investment of that money is.