- EE Bonds will earn a remarkable 3.5% annually if held for 20 years, tax deferred and free of state income taxes.
- I Bonds will match U.S. inflation with a flexible maturity date and solid protection against deflation.
- Both of these savings bonds are likely to outperform other safe investments like U.S. Treasurys and bank CDs.
These are dire times for investors looking for both safety and a return that can surpass or at least approach U.S. inflation. If you are retired, it’s a double whammy: You want to set aside cash for future needs, but you will earn only pennies on many thousands of dollars.
Is there a way — in September 2020 — to combine reasonable yield with total safety? The answer is, yes, there is.