What is better in today's economic situation, I bonds or EE bonds and why?

Question

What is better in today's economic situation, I bonds or EE bonds and why?

Answer 1

I Bonds. 1) They're inflation protected. 2) They're tax deferred (don't pay until redemption) 3) You can avoid tax altogether if you redeem them for educational payments.

But they're recently restricted purchases to $5,000/year/person.

Answer 2

Yep, I-bonds are better because they're inflation-indexed, as said.  Actually, though, you can buy up to $10,000 of I-bonds per year: $5000 in paper bonds and $5000 in electronic bonds.

I wouldn't be buying I-bonds now, however.  The fixed rate component (as opposed to the inflation rate component), which lasts for the life of the bond, is currently 0%.  That's right, ZERO. So basically, all you can hope for with I-bonds right now is to preserve the value of your investment, but not increase it.

EE bonds I would never buy because the interest rate is pathetic.