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by goldfish3 1350 days ago
>But the thing most miss about the I bonds is you receive no interest until maturity/cashing it in. So no compound interest.

That's incorrect. I bonds compound semi-annually.

https://www.treasurydirect.gov/savings-bonds/i-bonds/i-bonds...

1 comments

Technically you are correct, but it is only when you cash them in.

Please see this for other questions.

>3). Tax Deferred - I-bonds do not throw off interest. You only owe tax on the internally compounding interest once the bonds are cashed in, which means you control when you pay tax. Always a good thing!

https://www.reddit.com/r/personalfinance/comments/qprqpy/ibo...