That title may sound like a teaser in this low interest rate world, but there is a way to earn a good interest rate on excess cash right now: I bonds
Do you remember the old US Savings Bonds we all used to buy? They’ve revamped the process and it’s mostly electronic now through TreasuryDirect.gov.
So what is an I Bond?
It’s a savings bond that earns interest via a combination of a fixed rate + an inflation rate that is set twice per year. Currently it’s at 7.12%
So what’s the catch?
You can only purchase $10,000 per year electronically (or $5000/year in paper form)
If you want to learn more about Treasury Direct and I bonds: https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm