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Should I purchase EE/E or I bonds?

I want to start buying bonds for my young nephews. I know the difference between the 2 types, but which one is a better investment. I'm thinking of buying about 2, $100 bonds per year.

2 Answers

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  • 1 decade ago
    Favorite Answer

    I-bonds, The government knows this and that's why there is a bond purchase limit on I-bonds. Both are poor choices because neither beats inflation plus taxes. Even though the monitary value will go up, the purchasing power will go down or be stable as with I-bonds. Right now 7% investment is the break even point (where the gains are even with inflation plus taxes), but since inflation might be rising, that number will need to go up.

  • Anonymous
    1 decade ago

    If you are wanting to choose between the two, I would be much more inclined to choose the I bonds. They are inflation protected more or less and I doubt there is anyone currently that doubts that inflation is going to be a real problem during the next 20 years. I say more or less, but it will more likely be less than more since it is the government selling the bonds and the same government telling us what the inflation rate is. Talk about conflict of interest.

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