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expired Posted by dn90003 • Dec 12, 2021
expired Posted by dn90003 • Dec 12, 2021

US Treasury Series I Savings Bonds Inflation Rate Earnings (Nov '21 - April '22)

(Limit $10K/Year Per Person)

7.12% Interest

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Note: This popular deal is still available.

U.S, Government Treasury is currently offering 7.12% Interest Rate in combined Fixed + Inflation Rate Earnings valid on newly issued Series I Savings Bonds purchased from November 2021 through April 2022. Limit of $10,000 / year in interest earnings per person.

Thanks to community member dn90003 for sharing this offer.

About this offer:
  • How do I buy a Series I bond?
  • What is a Series I bond? (source)
  • "A savings bond that earns interest based on combining a fixed rate and an inflation rate."
  • You may use Series I bonds to:
    • Save in a low-risk product that helps protect your savings from inflation
    • Supplement your retirement income
    • Give as a gift
    • Pay for education
    • Click here for more information about Series I Bonds
  • What interest does a Series I bond earn? (source)
    • A combination of a fixed rate that stays the same for the life of the bond and an inflation rate that is set twice a year.
    • For bonds issued from November 2021 through April 2022, the combined rate is 7.12%

Editor's Notes

Written by BostonGirl
Refer to the forum thread here for more information and details.

Original Post

Written by dn90003
Community Notes
About the Poster
Deal Details
Community Notes
About the Poster
Note: This popular deal is still available.

U.S, Government Treasury is currently offering 7.12% Interest Rate in combined Fixed + Inflation Rate Earnings valid on newly issued Series I Savings Bonds purchased from November 2021 through April 2022. Limit of $10,000 / year in interest earnings per person.

Thanks to community member dn90003 for sharing this offer.

About this offer:
  • How do I buy a Series I bond?
  • What is a Series I bond? (source)
  • "A savings bond that earns interest based on combining a fixed rate and an inflation rate."
  • You may use Series I bonds to:
    • Save in a low-risk product that helps protect your savings from inflation
    • Supplement your retirement income
    • Give as a gift
    • Pay for education
    • Click here for more information about Series I Bonds
  • What interest does a Series I bond earn? (source)
    • A combination of a fixed rate that stays the same for the life of the bond and an inflation rate that is set twice a year.
    • For bonds issued from November 2021 through April 2022, the combined rate is 7.12%

Editor's Notes

Written by BostonGirl
Refer to the forum thread here for more information and details.

Original Post

Written by dn90003

Community Voting

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Top Comments

Looks tempting. But these are only rated for inflation as fixed rate is 0%. Once inflation is back down, your rate will go down with it.
In case you're wondering, here's how the rate is computed:
Composite rate =
No, these are govt bonds. They stay in the treasury. I bonds are based on the rate of inflation. They have a fixed rate plus the current rate of inflation. Inflation goes up, you earn more. It was 3.54%. Rates went up on 11/1. To realize the full benefit you need to buy before the rates change on 5/1 and 11/1. No fees or penalties. Hold for a min.of a year. If you cash out in less than 5 years you forfeit 3 months interest. After 5 years, you don't pay anything. You can only buy $10k/yr and then up to an additional $5k if purchased directly from your tax refund.
I bought $10k in denominations of 2,3, 5 so if I want to cash out I can do it in chunks instead of having to cash out $10k.: Better than any CD or bank rate if you want to stay in cash.
By the way, using your tax refund to purchase bonds won't count toward your $10k yearly limit.

https://www.treasurydirect.gov/in...eature.htm

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Dec 12, 2021
1,183 Posts
Joined Mar 2005
Dec 12, 2021
acegolfer
Dec 12, 2021
1,183 Posts
Quote from calabasasdan :
What if some series of events leads to deflation - can the value of these go down due to the variable component?
No. Even if inflation rate is negative, the next 6-month interest rate will be 0%.

Quote from Honest-IJM :
With the official CPI at 6.8%(actually much higher), you are losing value buying this government debt. The USD is on it's last legs if the Federal reserve keeps increasing the money supply. https://tradingeconomics.com/unit...-supply-m2

Diversify yourselves folks! Fiat always fails in the end.
In my math 7.12% > 6.8%. You will lose more money, if you put in a CD/HYSA.
Dec 12, 2021
177 Posts
Joined Jun 2007
Dec 12, 2021
NICK777
Dec 12, 2021
177 Posts

Our community has rated this post as helpful. If you agree, why not thank NICK777

He is wrong, but silver and gold are both down in the last 30 days, the last 6 months, and the last year, despite rampant inflation. https://goldprice.org/
1
Dec 12, 2021
7,451 Posts
Joined Sep 2008
Dec 12, 2021
DogAndPony
Dec 12, 2021
7,451 Posts

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Quote from IndiaPaleAle :
Shame it's limited to 10 + 5k/yr.
I just loaded up $40k between myself, wife and two kids. Will do another $40k in January. That is enough for me.
2
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Dec 12, 2021
131 Posts
Joined Oct 2010

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Dec 12, 2021
916 Posts
Joined Jun 2007
Dec 12, 2021
Kissimmeegal
Dec 12, 2021
916 Posts

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Quote from acegolfer :
If anyone is reading this, you can designate secondary owner as well as beneficiary at the TD.gov.
I was secondary owner. They still demanded letters of appointment, which have to be done by an attorney. I also sent them (along with Judges order and death certificate), everything they requested, including both our birth certificates and our marriage license.
7
2
Dec 12, 2021
658 Posts
Joined Jul 2007
Dec 12, 2021
343guiltyspark
Dec 12, 2021
658 Posts
Quote from thehash :
that's the type of thinking we had with real estate pre 2008. LMAO
The key difference here is that these are Treasury bills guaranteed by the U.S. Treasury to pay back.

Pre-2008 mortgage backed securities were secured by pools of risky mortgages that inevitably declined in value.

Not sure you can compare shady banks indication to pay based on values of highly speculative loans circa 2008 against the U.S. Treasury's promise to pay.
1
Dec 12, 2021
7,393 Posts
Joined Nov 2006
Dec 12, 2021
KMan
Dec 12, 2021
7,393 Posts
Quote from thehash :
that's the type of thinking we had with real estate pre 2008. LMAO
What does a hugely unregulated private sector market have to do with what has literally been the most secure, reliable and 100% default-free security in human history? There is no comparison whatsoever and only an ignorant person would say otherwise.
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QA
Dec 12, 2021
872 Posts
Joined Mar 2005
Dec 12, 2021
EZ_slickdealz
QA
Dec 12, 2021
872 Posts
Last edited by EZ_slickdealz December 12, 2021 at 07:49 AM.
1
3
Dec 12, 2021
588 Posts
Joined Sep 2019
Dec 12, 2021
SlickMask6251
Dec 12, 2021
588 Posts

Our community has rated this post as helpful. If you agree, why not thank SlickMask6251

Quote from Follywood :
Crypto baby!
You will never sell it and that's why you will never enjoy it.
1
3
6
Dec 12, 2021
999 Posts
Joined Oct 2007
Dec 12, 2021
MikeyMike01
Dec 12, 2021
999 Posts
Quote from apffel :
So crazy to me that people still think this way. Crypto has a $3 Trillion market cap. Definitely will never go to zero and still the fastest growing investment in my portfolio.
It's not the first speculative bubble and it won't be the last… make sure you get out before it goes to zero
5
Pro
Dec 12, 2021
2,742 Posts
Joined Oct 2020
Dec 12, 2021
Honest-IJM
Pro
Dec 12, 2021
2,742 Posts
Quote from NICK777 :
He is wrong, but silver and gold are both down in the last 30 days, the last 6 months, and the last year, despite rampant inflation. https://goldprice.org/
Rising gold prices are a sign of a failing currency, do you think the government would want to let that happen? The shorting on the precious metals is insane.
Here is a cautionary tale of Germany during the Weimar Republic:
https://en.m.wikipedia.org/wiki/H...r_Republic
1
9
Dec 12, 2021
793 Posts
Joined Aug 2006
Dec 12, 2021
bizcut99
Dec 12, 2021
793 Posts
Thanks. Did this in November. Will do again in January.
Dec 12, 2021
1,848 Posts
Joined Jan 2010
Dec 12, 2021
TrevorK
Dec 12, 2021
1,848 Posts
Quote from KMan :
Low risk? How about NO risk? The US government has never defaulted on a security, like, EVER. Its value might go down over time so there's a secondary market risk, which is true of nearly any security, plus the rate appears to be floating so you lock in nothing, but the underlying security itself is as safe as it gets.

That said, 7%? When did that happen in an era of near-0% prime rates?
Near 0% prime for decades is why we have inflation.
8
Dec 12, 2021
7,393 Posts
Joined Nov 2006
Dec 12, 2021
KMan
Dec 12, 2021
7,393 Posts
Quote from shortprong :
And if they continue to print money, the value of existing money drops ..... eventually to about zero.

One hundred trillion dollars—that's 100,000,000,000,000—is the largest denomination of currency ever issued. In Zimbabwe, from 2007 to 2008, the local legal tender lost more than 99.9 percent of its value (Hanke 2008).
That you would compare the government and economy of the US to that of Zimbabwe says everything one needs to know about your level of economic sophistication and intelligence. And Treasury would have to "print" money at orders of magnitude higher than it has for what you ignorantly predicted to happen. It's like saying that because you spent a bit too much on Xmas presents this year, you're going to lose everything soon. Sheesh. Get a grip people. The sky is not falling and no real economist says otherwise. If you don't want to buy US securities, then don't.
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Pro
Dec 12, 2021
2,742 Posts
Joined Oct 2020
Dec 12, 2021
Honest-IJM
Pro
Dec 12, 2021
2,742 Posts
Fed chairman Powell said it was time to retire the phrase "Transitory", so I guess someone did...
https://www.cnbc.com/2021/12/02/p...e-ecb.html
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