US Treasury Series EE savings bond

[sealsmith217]

I recently saw an article on The Wall Street Journal and this sounded appealing for a savings bond vehicle. Current yield is ~3.5% which doubles the amount you put in after 20 years. There's a catch wherein it is not inflation protected, federally taxable at maturity, and limited to $10,000 per year per person.

Anyone have any experience buying/holding these as part of your bond allocation? Do you have any better recommendation for a savings bond vehicle?

I wanted to get forum input before I possibly buy these for the first time. Thanks.

[VagabondMD]

Actually, the current yield is 0.1%, but if you hold them for twenty years, they double in value, for an effective yield of 3.5% (if you hold them for 20 years).

I do not see that as a compelling proposition for me at this time.

[sealsmith217]

Yes, Vagabond MD is correct. My mistake. You do have to hold it for 20 years to get the effective yield of 3.526% which doubles your initial investment money. Before the full 20 years however, interest accrues only at the current rate of 0.1% annually.

Anyone with experience in owning these as part of your bond allocation? I feel that this is something worth discussing since it does help you defer taking Social Security when you reach retirement age assuming you hold on to it for the full 20 years. There may be better bond vehicles out there.