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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 1,448,082 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
172 Posts
Joined Feb 2009
Dec 12, 2021
somax
Dec 12, 2021
172 Posts
Quote from KMan :
The government buying back those mortgage securities was NOT "regulation". It was economic stabilization. NOT the same thing AT ALL. The mortgage security market collapsed because of a LACK of regulation. And the government "prints" money to match its spending-based debt levels, because it HAS to. (And it doesn't literally print it, it's all digital these days.) And it's NEVER not paid back a single cent, going back to 1776. China, Russia, the Martians, none of that can or will change that. People have to stop engaging in ignorant and fuzzy pseudu-economic thinking.
Good points here! Too big to fail movie is a good recap of what happened during 2008 and some people here would certainly benefit from watching it.
Another simple video on YouTube How the Economic Machine works by Ray Dalio may help with some basics.

https://youtu.be/PHe0bXAIuk0
Dec 12, 2021
3,300 Posts
Joined Nov 2010
Dec 12, 2021
bchill
Dec 12, 2021
3,300 Posts
I'll keep posting this link since the thread is growing so fast. Just read this and ignore the segment of simpletons trying to explain this product.

https://thefinancebuff.com/how-to...bonds.html
1
Dec 12, 2021
884 Posts
Joined Sep 2004
Dec 12, 2021
DerpVader
Dec 12, 2021
884 Posts
Quote from oxnardprof :
No, they must be held in TreasuryDirect
Huh??? I think you replied to the wrong person
Dec 12, 2021
2,639 Posts
Joined Oct 2007
Dec 12, 2021
langjie
Dec 12, 2021
2,639 Posts
Quote from WiseLeopard609 :
On the surface, the deal seems fantastic but...

I am looking at historical rates over the past 5 years. The average seems to be around 2.5% a year, which isn't horrible if you are over 65 and need to park your money somewhere super safe.

Then again if you invested in Amazon 5 years ago, your investment would be worth 400% more, Walmart 200%, Bitcoin 300%.

If you are under 50, you are literally throwing money away investing in treasuries because of the time value of money. You aren't going to be wealthy turning $700 a year on $10,000.

If you believe the stock market is going to crash (it could), you should be keeping your money available, so you can buy stocks at the bottom.
Not if you think a market correction is coming... Record inflation, worker shortage, China real estate bubble popping, etc
Dec 12, 2021
3,300 Posts
Joined Nov 2010
Dec 12, 2021
bchill
Dec 12, 2021
3,300 Posts
Quote from keung :
WRONG we already have 2 CPI print out (Oct, Nov) The 2 month total is already 1.33% that means the annualize rate will be at least 2.66% even IF all 4 months (Dec-Mar) record 0% inflation you are still expect payout 2.66%

Please don't put false information if you don't know ANYTHING
Repped for calling out ignorance and deceit..
2
Dec 12, 2021
6,658 Posts
Joined Mar 2004
Dec 12, 2021
practicalme
Dec 12, 2021
6,658 Posts
Quote from TomHagen :
Have fun with the website, especially putting in your password. It's not a scam, just a gov built website from long ago.
I simply saved the password in my browser, bypassing the on screen keyboard.

I do wish the OP would have mentioned that the bonds have to be kept for a minimum of a year and that there is a 3 month interest penalty if cashed before 5 years. And that the current interest rate is only for 6 months.
Dec 12, 2021
2,639 Posts
Joined Oct 2007
Dec 12, 2021
langjie
Dec 12, 2021
2,639 Posts
Quote from avitron142 :
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?
Minimum time is 1 year then you can take it out, there is a penalty before 5 years which is 3 months of interest iirc but still way better than a bank

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Dec 12, 2021
466 Posts
Joined Nov 2014
Dec 12, 2021
avitron142
Dec 12, 2021
466 Posts
Quote from langjie :
Minimum time is 1 year then you can take it out, there is a penalty before 5 years which is 3 months of interest iirc but still way better than a bank
Thanks. How would this differ from TIPS then?
Dec 12, 2021
228 Posts
Joined Dec 2007
Dec 12, 2021
oxnardprof
Dec 12, 2021
228 Posts
Quote from avitron142 :
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?
From Treasury Direct, these are longer term investments. You can lose interest if you redeem before five years.

When can I cash my I bonds?
After they are 12 months old.
If you cash an I bond before it is five years old, you will lose the last three months of interest.
I bonds earn interest for 30 years if you don't cash the bonds before they mature.
If you've been affected by a disaster, special provisions may appl
Dec 12, 2021
317 Posts
Joined Nov 2013
Dec 12, 2021
ShanmugaS
Dec 12, 2021
317 Posts
Quote from Follywood :
Crypto baby!
Btc dropped from 60k to 39k. You must be idiot to think crypto is the alternative to govt bond to store your money for important life events.
Dec 12, 2021
368 Posts
Joined Sep 2015
Dec 12, 2021
single_flyer
Dec 12, 2021
368 Posts
Can you buy these with a credit card?
1
Dec 12, 2021
19 Posts
Joined Aug 2020
Dec 12, 2021
PurpleClass319
Dec 12, 2021
19 Posts
Most of you comparing this to other investments need to consider diversification. Nobody is saying you should put all your $ in I bonds. However, it can be a useful piece to a diversified portfolio.
Dec 12, 2021
172 Posts
Joined Feb 2009
Dec 12, 2021
somax
Dec 12, 2021
172 Posts
This is a great diversification way or an alternative to other investments for people with low risk tolerance. My daughter is in college and is afraid to invest her 10k saved into a stock market due to volatility so it is great for her vs keeping it in CD and etc. Another example could be someone buying a house in a near future and looking for a way to park money short term with guaranteed return and excellent yield. What is not to like here!!
Dec 12, 2021
6,658 Posts
Joined Mar 2004
Dec 12, 2021
practicalme
Dec 12, 2021
6,658 Posts
Quote from WiseLeopard609 :
On the surface, the deal seems fantastic but...

I am looking at historical rates over the past 5 years. The average seems to be around 2.5% a year, which isn't horrible if you are over 65 and need to park your money somewhere super safe.

Then again if you invested in Amazon 5 years ago, your investment would be worth 400% more, Walmart 200%, Bitcoin 300%.

If you are under 50, you are literally throwing money away investing in treasuries because of the time value of money. You aren't going to be wealthy turning $700 a year on $10,000.

If you believe the stock market is going to crash (it could), you should be keeping your money available, so you can buy stocks at the bottom.
Some people like to spread out their investments. No one ever said you'd get rich on government bonds. And with the uncertainty of inflation and a stock market bubble, diversity is even more important.

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Dec 12, 2021
16 Posts
Joined Mar 2019
Dec 12, 2021
CoralMustang137
Dec 12, 2021
16 Posts
Quote from Marc25 :
People spending isn't the cause for our current inflation or long term inflation... Artificially low rates, regulations and policies causing supply issues and borrowing and printing cash does.
"People spending isn't the cause for our current inflation or long term inflation..." uhmmm. People spending is the only driver of inflation. If people don't spend, then the price of goods drop. When you have a massive shift in the demand curve caused by giving people an extra $2 trillion that they otherwise wouldn't have, you get inflation. Demand bouncing back from COVID lows is in some way transitory, but there are now structural changes in the labor market and supply chains that will cause inflation to persist for the next couple of years. Spending trillions on infrastructure when there isn't anyone willing to work construction jobs will push wages higher and higher over the next few years. There is a limit on the amount of goods people have the desire to actually buy, so, in an attempt to make more profit, companies increase prices on goods and services to capture some of the extra disposable income. It's a vicious cycle. Unless the U.S., and the world, put a stop on new spending, inflation will persist for 3-5 years like the poster you replied to mentioned. If the solution to inflation ends up being the Fed sucking money out of the market while the government continues to spend, then you will actually see massive structural changes in investment markets as the cost of capital rapidly rises.
1

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