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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

3,499 Comments 1,448,019 Views
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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

3,499 Comments

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Dec 12, 2021
2,837 Posts
Joined Jul 2009
Dec 12, 2021
keung
Dec 12, 2021
2,837 Posts
Quote from trza :
Dang. I have some I bonds. Maybe I should sell them while the yield is so high. What kind of hit would I likely see?
Why would you sell it now they are paying the highest interest rate in last 20 years?
I Bond itself doesn't appreciate in value
Dec 12, 2021
585 Posts
Joined Sep 2012
Dec 12, 2021
saghey
Dec 12, 2021
585 Posts
Quote from trza :
Dang. I have some I bonds. Maybe I should sell them while the yield is so high. What kind of hit would I likely see?
You'll be paying taxes on the interest like a savings account. It is like income from a job.
Dec 12, 2021
640 Posts
Joined Feb 2008
Dec 12, 2021
matrixman
Dec 12, 2021
640 Posts

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

Quote from Kissimmeegal :
Treasury Direct sucks. When my husband of 35 years died, they made me jump through hoops to get his money out, even though I had the Judges signed order granting me title to the funds and my husband's death certificate. Had to get my lawyer to help, even though at the time I could ill afford to put out money to pay attorney fees. Not only that, it took them two months to finally release the funds.
Good luck on getting the money back out if you need it.
I open and close lots of accounts. Many times only in my name.

I left detailed instructions and passwords for my spouse and child. If there are any accounts with just my name, cash them out immediately to avoid any probate problems. Worry about the taxes later. I do have a will and trust that should cover most of the accounts, but there is always a straggler account. All my accounts are linked to the joint checking account making it easy to access the funds.

A couple of tips:

You can buy late in the month and sell early in the month and you will get full interest credit for both months.

If you sell a lot of bonds, watch out for that 1099. One year I sold two batches of bonds and only received one 1099. I had a lot on my mind that year. I thought it was accurate. I filed my taxes and later received a letter audit from IRS. They picked up on that second batch but no 1099 was issued. I owed a bunch of taxes and interest.
1
Dec 12, 2021
16 Posts
Joined Mar 2019
Dec 12, 2021
CoralMustang137
Dec 12, 2021
16 Posts
Quote from shark974 :
As far as I can tell stocks are the play. They historically return as much as real estate, except there is ZERO work involved. You literally sit on your ass while they go up.

The only caveat is you may experience a few years of down returns. However, I'm old. I know now when stocks go down, they ALWAYS go back up and to new records, just a matter of time.

Bitcoin is interesting and I have a little, but stocks to me seem just as tangible and as much a long term store of value as gold/crypto.
Indexes historically go up. If you are diversified or in ETFs, then returns should be fine over the long run. Stock pickers have the potential to get destroyed in a market like this. History is riddled with failed companies that people thought would be around forever or grow to enormous market caps.

The problem with this market is the large swath of speculative stocks trading at historically high valuations. For decades, excluding bubble years, a stock trading at a 2 PEG ratio or 10x sales was richly valued. Now, there are 100s of U.S. stocks trading at 3-4 PEGs and 20-30x sales. There is a lot of room for a long term structural decline in the markets. The thing propping the market up is the money supply. If the Fed has to reign in supply to battle inflation, look out below.
Dec 12, 2021
159 Posts
Joined Aug 2018
Dec 12, 2021
uclabru1
Dec 12, 2021
159 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).
Maybe repubs shouldn't have started 3 useless wars that caused 15 trillion in debt. That would have saved us a lot of time, energy, and money
6
Dec 12, 2021
382 Posts
Joined Jul 2018
Dec 12, 2021
EfficientWalrus7040
Dec 12, 2021
382 Posts
Quote from dingdong123 :
Any tax benefits here or just high yield investment?
Don't let the tax tail wag the investment dog. Is that still a saying?

If I had a dollar for every time a client decided to go with a much lower return because "I'm not paying any taxes on this!"…

Not saying you're doing that here, it may be appropriate for you. Just a note for all you who are obsessed with giving the government as little money as you can Smilie
Dec 12, 2021
1,176 Posts
Joined Apr 2010
Dec 12, 2021
Fibrocyte
Dec 12, 2021
1,176 Posts
Quote from raf1919 :
not sure who is more annoying.. a crypto owner or cross fitter.
But you live your life jealous of both. 😆
1
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Dec 12, 2021
1,183 Posts
Joined Mar 2005
Dec 12, 2021
acegolfer
Dec 12, 2021
1,183 Posts

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

Quote from chucktaylur :
I had my checking linked to td.gov during sign up process. Im not seeing an option to pull from my bank on the td.gov website.
You don't transfer fund first, then buy I-bond with settled fund. It's a 1-step purchase process.

Quote from chucktaylur :
So the only way to fund your treasury direct account is to push the money from your bank? Theres no way to pull from your bank using the treasury direct site?
No need to push. Pull works.
1
Dec 12, 2021
16 Posts
Joined Mar 2019
Dec 12, 2021
CoralMustang137
Dec 12, 2021
16 Posts
Quote from KMan :
You got any actual economic research that backs up ANY of this? Citing some hack who said something somewhere is not that. Nor is that old saw "Oh come on! It's OBVIOUS!". Lazy minds, lazy thinking. Btw most of the money got spent. On real things. That put the money back in circulation. Where it gets taxed.
You just answered your own question. "Most of the money got spent." Inflation is too much money chasing too few goods. The spending of the $2 trillion in COVID stimulus caused inflation. Doesn't take a degree in Economics, which I have, to figure that out.
1
Dec 12, 2021
7,393 Posts
Joined Nov 2006
Dec 12, 2021
KMan
Dec 12, 2021
7,393 Posts
Quote from CoralMustang137 :
You just answered your own question. "Most of the money got spent." Inflation is too much money chasing too few goods. The spending of the $2 trillion in COVID stimulus caused inflation. Doesn't take a degree in Economics, which I have, to figure that out.
No, it isn't, and yes, it does. Only a fool thinks economics is obvious or simple.

I brushed my teeth this morning and the sun came up shortly after. Obviously I caused it to come up by brushing my teeth.

Inflation is more demand than supply. Kind of obvious but in this instance also backed by mountains of evidence.

And no, Wiemar Germany doesn't disprove that. Totally different situation that doesn't apply here. We don't have a crushing international debt burden and no one's demanding their money back on the debt we do own. They couldn't even if they wanted to because t-bills don't work that way.

The Chicago School is bunk.
Dec 12, 2021
61 Posts
Joined Sep 2014
Dec 12, 2021
ssrigane
Dec 12, 2021
61 Posts
Which tab I should use to buy the bonds? Buy direct?
Dec 12, 2021
455 Posts
Joined Nov 2010
Dec 12, 2021
mcosf
Dec 12, 2021
455 Posts
thanks for posting this, my mom's been telling me about this for months now
1
Dec 12, 2021
228 Posts
Joined Dec 2007
Dec 12, 2021
oxnardprof
Dec 12, 2021
228 Posts
Quote from DerpVader :
Better link, takes you to the page explaining Series I bonds.
https://www.treasurydirect.gov/in....htm#irate [treasurydirect.gov]
No, they must be held in TreasuryDirect
Dec 12, 2021
465 Posts
Joined Nov 2014
Dec 12, 2021
avitron142
Dec 12, 2021
465 Posts
Serious question - as someone who may need cash within the next two years, is this a good choice? I don't want to put any more into the market, and my only exposure to bonds were the 4-week rolling on treasury-direct. What's the term on these bonds?

20 years initial maturity? Am I reading that right?

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Dec 12, 2021
802 Posts
Joined Mar 2010
Dec 12, 2021
coli
Dec 12, 2021
802 Posts
If I use tax refund to buy the bond will it automatically show up in my TreasuryDirect account?

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