We have recently recommended iBonds for intermediate term savings. United States iBonds offer a flexible and rewarding savings option, boasting a competitive interest rate of 4.3%. With a minimum one-year holding period and the ability to cash out if needed, iBonds cater to intermediate-term savings goals (home renovations, big vacations, car upgrades) while providing financial security and growth potential.
Key Points:
- Bonds paying 4.3% interest
- Required minimum one-year holding period
- Three-month interest penalty applies after one year until five years
- Ideal for savings towards big trips or home repairs
- Flexibility to cash out if necessary
We recommend holding current iBonds, but we would not aggressively be adding more dollars at 4.3% to your iBond account as you could find CD’s that pay more for 1-3 year terms.
