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In the midst of rising inflation rates, I wrote extensively about using i bonds as a hedge to protect assets. Many readers have asked about the optimal time to cash out their i bonds. The answer depends on when they were purchased.
It is important to note that i bonds must be held for at least one year, and there is a 3-month interest penalty if liquidated before 5 years. Currently, everyone should have earned the previous 6.48% variable rate within the past 3 months. The date when the 3-month interest penalty drops to 3.38% varies based on the month of purchase.
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