Savings Bonds: Back-To-Basics Investing
SAN FRANCISCO (CBS 5) ― During this financial crisis, people are going back to basics: savings bonds. There are two types -- EE Bonds and I Bonds. Both pay a better interest rate than many regular savings accounts and are backed by the U.S. government

You can invest in both bonds with as little as $25, with a $5,000 maximum per year. Both earn interest for up to 30 years, but can be redeemed after one year. And both are exempt from state and local income taxes.

You can buy EE Bonds at half their face value. For example, a $1,000 bond costs $500. It reaches its face value in 20 years.

The difference between the two bonds? EE Bonds are now paying 1.4% and I Bonds 4.84%. I Bonds pay more because they're tied to the inflation rate.

Both can be purchased on line at www.savingsbonds.gov.

You don't even need a paper copy. You can register them, calulate their value -- all online.

If you want to learn more about financial planning, you can attend a free clinic hosted by the Financial Planning Association-East Bay Chatper. It's Saturday, October 4, from 10 AM to 4 PM at the Oakland City Hall Building.
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I was going to buy that lotus few months back.. I went with the cheaper car and bought a bunch of bonds...