Thanks the pupil. It's a small liquidity sacrifice though, no?
yes, it is a small liquidity sacrifice for the first year and like i said, it's not really to be used for cash that you'll move around a lot so it may not suit your purpose
Year 0-1: not liquid
Year 1-5: liquid, forfeit 3 months' interest (the amount shown in your account and above is net of this penalty)
Year 5-30: liquid with no penalty
Year 30: you must redeem
federally taxable at ordinary rates upon redemption unless used to make qualifying educational expenses if bondholder falls under a a certain income limit; not subject to state tax.
Pupil, are you doing paper ibonds with tax refund as well? Do you convert those to online or do keep it in a safe or safety deposit box at bank?