For all you financial gurus out there... Thanks in advance!

I purchased savings bonds with my Delta American Express credit card in order to get miles for the purchase. I am asking for advice on how to proceed with these bonds with regards to my other investments. I have the following bonds:

Spent $2500 on five EE bonds, each with denom=$1000, price=$500, issued Aug-2002, interest earned per bond is $16.80, rate 2.66%, yield 2.85%

Spent $10,000 on two I bonds, each with denom=$5000, price=$5000, issued Jan-2003, interest earned per bond is $102, rate 5.17%, yield 2.71%

My money market account is paying 1.30% if balance greater than $50,000 and 0.65% if between $15,000 and $50,000.

Using the yields as indicators, it seems that keeping money invested with savings bonds provides a better return. However, the 3-month penalty might negate this benefit.

My questions: Should I cash in the bonds so that I get into the 1.30% area of my money market account? Should I invest more on savings bonds and less in my money market account to increase return and earn more miles? If yes, should I invest in bonds before end of October or in November? I know intesrest rate changes, but is the change to a higher or lower rate??? Which bond series makes mnore sense?

Note to moderator: If this does not belong on this board, please move it to a more appropriate board. Thanks!


[This message has been edited by silkworm (edited 10-29-2003).]