If you have cash that you want to invest. Please consider Treasury Series I Savings Bond (Electronic). Interest is 7.12% right now. While it's not guaranteed that the 7.12% will remain until next year, it's still a good deal.
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You can do more if you have kids, set up minor accounts for them and buy through them.
Chief
Based on inflation reading of last 3 months, there are good chances that the rate will remain good from May onwards even if it’s not at 7
Interest is paid when redeeming the bond.
Yup. Great option if you know you'll need the cash in 1-2 years. I bought some to replace my emergency fund once it frees up.
My long term investment is still index funds though, as it should be.
Is there a con to this? Could I lose money? Sorry don’t know much about bonds but I’m very interested
No con. The downside is losing 3 months of interest if you withdraw between 1 and 5 years. The interest rate alone makes that a wash.