Can you sell i-bonds after 10 months?
I know this thread is several months old, but thought I'd post the minimum holding period. EE and I bonds can be redeemed after 12 months. In certain "hardship" situations they will allow you to redeem them before that period.
If you redeem the bonds between 1 year and 5 years, you forfeit the last three months of interest as a penalty. After 5 years, there is no penalty.
I actually like "I bonds" a lot. I automatically make "I bond" purchases at the end of each month. The bonds that I have purchased since 2/2011 are either earning 1.76% or 2.20%. Now most (or I think even all) of these rates are variable as I think the fixed rate component has been 0 throughout the duration of my purchases. However, the current rate can't be beat for a safe savings vehicle and I don't expect the inflation component of the bonds to be less than the average savings/money account rate anytime soon.
You should also take note of when the buy is recorded. If you buy on the 30th, it is recorded on the 1st. So, if you buy on the 28th of this month and then sell on the 1st of Feb, 2014, you will have held 11 months, plus a day or two. My 10 months above, is untrue.
Also, the inflation component of the ibonds is tied to the CPI-U. It has nothing to do with what your checking/savings account is offering. Currently, if the government was to calculate the ibond rate, it would be 0% (really it's negative).
"If you only have 1 year to live, move to Penn...as it will seem like an eternity."
Good to see you back, I was starting to miss your incisive commentary!