I have about $5000 coming in from a stock sale (ESPP). My plan with it was to invest in treasury bonds (I), since the rate is really good right now (~6.69%). It changes every 6 months (https://www.treasurydirect.gov/savings-bonds/i-bonds/). I see it remaining high for the foreseeable future, but there is no guarantee.
I also have a new car loan ($38K principal, 6.69% interest rate).
PS: I just realised my interest rate and the IBond rate are the same, but these are real numbers.
- principal: $38.7K
- finance charges: $7065
- interest rate: 6.69%
- term: 60 months
My question - would I be better off investing in treasury bonds or paying down the loan? By better I mean having more money at the end of the 5 year period.