Should I invest in Series EE bonds?

Series EE savings bonds can be good choices because of their low risk and tax advantages when compared with CDs and because the federal tax is deferred until the bonds are redeemed. The interest is also exempt from state tax. For clients with joint modified adjusted income below $68,250 (indexed for inflation), the interest is free of federal income tax if the proceeds are used for qualifying educational expenses. However, certificates of deposit and EE savings bonds offer little protection against inflation.