Savings Bonds beat CD ladders

We occasionally see articles, like this one from Bankrate.com, suggesting CD ladders as a strategy for increasing the yield on the low-risk portion of your portfolio. However, when you expect interest rates to rise, US Savings Bonds are a much better choice. Since Saving Bond rates adjust to the market (Series EE) or to the inflation rate (Series I) every six months, you'll come out way ahead. Yes, there's a three-month interest penalty if you redeem a Savings Bond before five years, but don't be afraid of that! You'll come out ahead even after paying the penalty! This article on United States Savings Bonds includes a detailed comparison of CDs, Money Market Accounts, and Savings Bonds. Also, here's a table of current interest rates that will give you further evidence that Savings Bonds beat CD ladders.