investing






 

Question by  lucylu (33)

Which is a better option a Savings bond I or an ee?

 
+6

Answer by  Krakus (8)

An I Bond is usually a better choice because its value goes up as inflation goes up. With an EE you are taking the risk of rising or high inflation.

 
+4

Answer by  tamarawilhite (17883)

If you expect interest rates to go much higher, as some have predicted, a series I bond is better. It can keep up even if 15% inflation. If you expect low interest rates or even deflation, a series EE bond is better because it pays about 2-4%, depending on interest rates when it is purchased.

 
+3

Answer by  Vladlen (358)

Series I bonds offer a protection from inflation, while Series EE doesn't. So if you think that inflation will rise in future go with Series I, if you think inflation will to be low go with Series EE. But keep in mind that no one can predict the future.

 
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