Bonds

1. What is the current interest rate on EE Bonds purchased today?
The current interest rate is 1.20% on EE Bonds purchased today.

2. Explain the advantages of purchasing bonds.
The advantages of purchasing bonds is that you will know how much interest you can expect to receive, how often you'll receive it, and when the maturity date is. Bonds are very steady and the interest rates paid by bonds typically exceed those paid by banks on savings accounts, especially short-term bonds.

3. Which would you prefer to buy an I or EE bonds? Explain.
We would rather prefer to buy an EE bond because it is more stable and the I bond is based on inflation so the interest on the bond can go up and down depending on the inflation.

4. Why must you wait until the bond matures before you redeem it?
You must wait until the bond matures before you redeem it because you will be able to receive the full worth of the bond by receiving all the interest it collected over time.