Would electronic EE bonds be a good investment right now?

Question

The interest seems a little low since changing in May '08 but are they still a good idea?

Answer 1

No.  Right now they are paying 1.4% and inflation is 5-6%.  You would be losing over 3% in the short term on your money.

Answer 2

A little low?  You are one for understatements.  1.4% is not a little low, it is theft.   Inflation is running at 8%, and the government is willing to pay you 1.4% to steal your money and then on top of that tax you on the money you didn't make.  Cute beyond belief.

Answer 3

Bonds generally yield lesser returns when compared to other investment instruments.  But they are less riskier with lesser rewards.

Answer 4

No.  At this time only I-bonds make any sense.