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?
- Must register or sign-in to your free TreasuryDirect.gov account and link a bank account.
- Click here to view a Guided Tour
- 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%
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In case you're wondering, here's how the rate is computed:
Composite rate =
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.
https://www.treasurydir
3,498 Comments
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Over 25% of the US Dollars in existence were created in the last 12 months.
The other 75% were created over the course of 103 years.
Although inflation has not caught up, this means the dollar has lost 33% of its value in just one year.
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A bit of research seemed to indicate the balance will reflect what is available for withdrawal, and because of the 3 months of interest penalty during the first 5 years, the system won't credit your account balance with interest until 3 months have past.
So if you buy today and sell at 12 months, the first 6 months will earn the 7.12% and the penalty will come from whatever the second 6 month interest rate is.
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1. Beware that you may have to verify with a "stamp" in person if your account is randomly selected to be "verified" upon sign up (medallion signature). This is a HUGE pain, so hop you don't get selected. In my experience, I have seen this happen most often with my friends who share a joint banking account.
2. As many others have said, you can buy 10k a year. It doesn't matter when you buy during the month to get that interest, and that is when the 6 month interest rate starts. So if you buy 10k no and 10k in January, you would have 20k guaranteed at the 7% for 6 months. It could go to zero in the next 3 months, but it will never go below zero. This also protects against deflation (if you think this is a thing)
3. There is also a tax benefit, you can defer taxes until the bond matures.
4. You can also use this money to save for certain education expenses.
5. Buying this is COMPLETELY dependent on your financial situation. It definitely beats a cd, but has multiple restrictions. It may make sense, it may not. Not financial advice, DYOR
In case you're wondering, here's how the rate is computed:
Composite rate = [fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation rate)]
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Ok deal for folks over 50 otherwise just stick to voo.
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