These Savings Bonds Aren't Kids' Stuff

When their certificates of deposit mature, savers have some unappealing choices: either roll over the CDs at 4% or put the money into stocks, bonds, or mutual funds--where the principal is at risk. The situation is particularly worrisome for savers who live off interest income. They need all the yield they can get but can't afford to take risks.

Here's a prescription for CD shock that you're not likely to hear from a broker or banker: U.S. savings bonds. No, not the kind that people give as gifts for newlyweds and newborns--persons in need of long-term savings but not current income. Those are the Series EE sort, which are bought at half their face value and mature in 12 years to full value.