A savings account is highly liquid and even seasoned investors will say it is highly conservative.  If you think about it, how often do you hear about savings accounts on TV, on the radio or even in the newspaper?  Its the money markets and treasury bills that we hear about but don’t let that sway you.  It is your money and you choose where to put it. 

When you take time to do some research yourself online, you will discover that savings accounts can be managed online or over the phone, so what could be easier.  With instant access and flexibility that comes with a savings account, you can save regularly if you want, its up to you.  Whether you choose a CD or savings account, or any other type of investing vehicle, you are in charge.

I bonds can be either be purchased electronically or on paper. The convenience of acquiring it electronically is that you can pay for it in whatever amount you want ranging from $25 minimum to a maximum of $5,000. If you choose you purchase I bonds on paper, you would have to pay in certain denominations: $50, $75, $100, $200, $500, $1,000, or $5,000. You could acquire I bonds worth up to $5,000 each year. Both electronic and paper I bonds are sold at face value, unlike the EE paper bonds which are sold at half their face value. This implies that for a $500 I bond, you would have to pay $500 as well. Despite that, one great thing about I bonds is that rate of profit is fail-safe greater than the rate of inflation.

I bonds, like the EE bonds, impose an early redemption penalty. Your interest for the three latest months shall be forfeited if you would redeem the bond within the first five years of purchase. To avoid this, it is advisable for you wait for five years before redeeming the bonds.