[cornstalks]

> invest $40k earning 7.12% for at least 6 months

I'm sure you know this so this comment is more for the casual reader: "I bonds earn interest for 30 years unless you cash them first. You can cash them after one year. But if you cash them before five years, you lose the previous three months of interest."[1]

Worth keeping in mind these aren't really short-term investment vehicles. But earning 2x inflation rate is pretty decent for a low-risk investment.

[1]: https://www.treasurydirect.gov/indiv/research/indepth/ibonds...

[pvitz]

> But earning 2x inflation rate is pretty decent for a low-risk investment.

Maybe you mean this anyway, but your statement could be misunderstood: One doesn't earn twice the inflation rate. It is multiplied by two to give an annual rate that can then be combined with the annual fixed rate. When calculating the coupon, you would of course have to adjust for half a year.

[timr]

These are a good place to store your emergency fund (assuming you roll your money into them 10k at a time, so that you have short-term liquidity when needed.)