Quote:
Originally Posted by Plinker
I have I-Bonds and several MYGA’s that accumulate interest but tax on the interest is delayed until I choose to cash out. These are non-qualified accounts. Are there other products available that offer a guaranteed fixed rate of return and are insured against loss that pay above 4%?
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You can report I Bond interest yearly, even though it’s accumulating, if you choose. With an I Bond there is a 3 month interest penalty if cashed in prior to 5 years. When you go online to check interest earned, the amount shown in the first 5 years, is less the 3 month penalty you incurred if cashed in.