Debating what to do. Pretty much have to put the request in tonight if you want the current 6 month I Bond rate, a combined 5.27%. Which isn't much better than what some CDs and savings accounts offer, but it's state tax free, and includes a fixed 1.3% component for the life of the bond. Supposedly in May the total rate is expected to drop to around 4.3% and who knows what the fixed/variable parts will be.
Meanwhile, short term CDs are paying higher interest rates than 1 year ones, which in turn are paying more than multi-year ones. Because people expect rates to drop, so "locking in" higher rates for long term is considered worth the loss.
I have a savings account paying 5.05% right now w/o any commitment on my end, but by the same token, they can drop the rate any time they like.
So...trying to figure out what I should do w/ my savings. I might do the I Bonds just b/c it's capped at $10K per person per year so it's not like it's pretty limited how much can be put in anyway, and worst case scenario I remove it in 15 months, losing 3 months of trash interest and maybe the 2nd 6 months was lower than a CD would've paid, but still no state tax.
Capital One is offering a 10 month CD for 5.10%, which at least "locks in" for nearly a year if rates do come down, and I doubt there's any risk of them going up....
What is CE doing w/ their savings currently?