
When is the ideal time to cash out your I Bonds and liquidate your position?
As of January 1, 2024, interest rates and the trailing 3-month interest penalty for i bonds have decreased. It is advisable to consider cashing them out, but consulting with a financial advisor is recommended. Reinvesting in i bonds at current rates offers a bonus fixed rate of 1.3% on top of the 3.94% inflation rate, resulting in a composite rate of 5.27%.
Buying new bonds with a fixed rate is more advantageous than holding onto old bonds without one. Alternatively, exploring other high-interest investment options is also worth considering.
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