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Are you ready to pay your taxes? If so, you may be wondering which credit card to use for the payment. With big welcome bonuses and more, there are several cards that can help you earn rewards while paying off your tax bill. However, it's important to consider the credit card processing fees associated with each option.
In this post, we'll explore the best cards to pay taxes with and discuss whether it's worth it to use a credit card for this purpose. Whether you're looking for cashback rewards or status benefits, there are plenty of options available to help you make your tax payment more rewarding. So, which card will you choose?
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.
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.
