3.54% risk free - I bonds

[zoro]

In a world where bonds and cds are paying nothing. You can put up to $10k in a US govt backed (they own the printing press) I bond which pays CPI+0% interest rate. As CPI is 3.54% you will get that for the next six months, and this current 5% cpi rate will feed into the rate over then next six months depending on when you buy the bonds.

You can cash it at any time after a year with a 3 month interest penalty, and if you keep 5 years there is no penalty. they are state tax free, and you can use them to pay for kids education tax free if you have low income (less than about $135k) which may benefit mustachians.

You can buy them directly online through treasury direct.

[dabighen]

I have been buying them for the last 15 years steadily.  They constitute my complete emergency fund.  Have always paid better than a savings account.

[RWD]

This came up earlier this month as well. Discussion here:
https://forum.mrmoneymustache.com/welcome-to-the-forum/series-i-savings-bonds-for-emergency-fund-3-54-interest-rate/