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EE vs I bonds.

Posted: 2004-05-28 08:35pm
by TrailerParkJawa
Does anyone has a reason to buy EE savings bonds vs. I bonds?
I bonds have built in protection from inflation so I think they
would be the better deal, right?

Posted: 2004-05-28 08:45pm
by Joe
You're makin' me think back to Finance...

I bonds have no guaranteed amount of return, but EE bonds do. I think that's the biggest disadvantage. But like you said they have a variable rate built in that's indexed to inflation, so maybe that isn't really a disadvantage.

Posted: 2004-05-28 09:20pm
by TrailerParkJawa
Joe wrote:You're makin' me think back to Finance...

I bonds have no guaranteed amount of return, but EE bonds do. I think that's the biggest disadvantage. But like you said they have a variable rate built in that's indexed to inflation, so maybe that isn't really a disadvantage.
The only way to not get any return on an I bond is under deflation. But even then the principle is protected. I guess with an I bond you have to pay the face value up front , while with a EE it is half the face value.