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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

3,499 Comments

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Dec 12, 2021
62 Posts
Joined Jun 2014
Dec 12, 2021
idontknownada
Dec 12, 2021
62 Posts
Quote from MikeyMike01 :
Just don't be left holding the bag when crypto heads to $0
I think this is from a place of ignorance. We have been hearing that the sky is falling for about a decade now.

We cannot go back to a pre-internet society, same with crypto.
4
Dec 12, 2021
14,299 Posts
Joined May 2004
Dec 12, 2021
BalkiBartokomous
Dec 12, 2021
14,299 Posts
Jesus Christ.... Currently Active Users Viewing This Thread: 12546 (7106 members and 5440 guests)
1
Dec 12, 2021
73 Posts
Joined Jul 2016
Dec 12, 2021
sanden222
Dec 12, 2021
73 Posts
Quote from sdpoker :
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 = [fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation rate)]
Not going down soon. Hold for 3 years
Dec 12, 2021
376 Posts
Joined Dec 2007
Dec 12, 2021
James Mason
Dec 12, 2021
376 Posts
Quote from tolgabalci :
Property values right now are likely over inflated. Depending upon your area property values may actually go down in the next few years.
Ahhhhh. Bought 1st house in CA for 220K, sold for 435K. , then bought house for 500K, just sold for 1.4million. Real Estate has ALWAYS gone up through the years, even with Up and Down values. Always, just like my wife nagging me. Always.
1
4
Dec 12, 2021
314 Posts
Joined Oct 2012
Dec 12, 2021
mdbrown9999
Dec 12, 2021
314 Posts
with the end of the year coming up, you can deposit ten grand twice in a month.
Dec 12, 2021
73 Posts
Joined Jul 2016
Dec 12, 2021
sanden222
Dec 12, 2021
73 Posts
Quote from idontknownada :
I think this is from a place of ignorance. We have been hearing that the sky is falling for about a decade now.

We cannot go back to a pre-internet society, same with crypto.
It will have to be taken over by a reputed organization… (read government)
Dec 12, 2021
3,902 Posts
Joined Sep 2005
Dec 12, 2021
MeatCatalog
Dec 12, 2021
3,902 Posts

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

Quote from wacio :
The real inflation is 20%+ !!! Did you go shopping recently or bought house or car? 7% is a lie!
Indeed. But when the US govt sends $6000 to people who are are sitting on a couch doing nothing (forced or voluntarily) there are going to be consequences.

Inflation folks, will be here for at least 10 years since Biden is not going to stop the fiscal stimulus and the FED will do nothing to stop it because doing so will sacrifice the real estate and stock markets

Ground beef to $10/lb in 5 years or less.
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Dec 12, 2021
294 Posts
Joined May 2013
Dec 12, 2021
puffyblowfish
Dec 12, 2021
294 Posts
calculate your own expenses at the end of the year, if they went up more than 7%, then you are losing purchasing power if you invest in this.
Dec 12, 2021
6,658 Posts
Joined Mar 2004
Dec 12, 2021
practicalme
Dec 12, 2021
6,658 Posts
Quote from phatman98 :
Been in ibonds for a while, adding my 2 cents here.
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 Smilie
Well put. It's been my experience that the stamp requirement is mainly if you try to add another account after the initial one. I saw that happen to a couple people who didn't think about which account they were linking initially.

I'd also add that you can additionally buy up to 5K in paper bonds via your tax refund.
1
Dec 12, 2021
73 Posts
Joined Jul 2016
Dec 12, 2021
sanden222
Dec 12, 2021
73 Posts
Quote from CoralMustang137 :
The Obama administration had 8 years to end those useless wars, but didn't have any plan to do it. The wars either served some purpose, or the Obama administration has some blame in the situation and the debt it created.
How about Donnie, he just punted to next admin.
1
Dec 12, 2021
802 Posts
Joined Mar 2010
Dec 12, 2021
coli
Dec 12, 2021
802 Posts
Wow I just realize I can pay tax with credit card and I'll get more cash back then the fees. No more additional withholdings for me.
1
1
Dec 12, 2021
233 Posts
Joined Jan 2021
Dec 12, 2021
HilariousRecess268
Dec 12, 2021
233 Posts

Our community has rated this post as helpful. If you agree, why not thank HilariousRecess268

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?
Don't sell your current I Bonds. I bonds are inflation rate plus fixed rate. Current inflation rate is 7.12% with a 0% fixed rate, so essentially you are just getting the inflation rate on newly issued bonds. If you are currently holding I Bonds that are higher than 0% fixed rate, they will pay better than 7.12%. Note that this 7.12% is for 6 months until the inflation rate resets. 7.12% is the annualized rate for the 6 months. So it is essentially 7.12% divided by 2 or an actual 3.56% for the 6 months and whatever the inflation rate resets to for the next 6 months. One other thing to note is you get paid interest for the entire month even if you purchase at the end of the month. So it is always better to purchase near the end of the month and sell near the beginning. Make sure your account is ready to go and allow a couple business days for processing.
1
Dec 12, 2021
6 Posts
Joined Dec 2014
Dec 12, 2021
larrytinsley
Dec 12, 2021
6 Posts
Quote from Pseudoty :
Just buy more Gold or Silver as a hedge against inflation.
Where do you recommend to buy from?
Dec 12, 2021
88 Posts
Joined Jan 2011
Dec 12, 2021
EBT
Dec 12, 2021
88 Posts
If you have cash you're sitting on and plan on not touching it for a year, it's not a bad idea to put it here.

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Dec 12, 2021
233 Posts
Joined Jan 2021
Dec 12, 2021
HilariousRecess268
Dec 12, 2021
233 Posts
Quote from coli :
Wow I just realize I can pay tax with credit card and I'll get more cash back then the fees. No more additional withholdings for me.
(edited) I misspoke on this post and cold not figure out a way to delete.
Last edited by HilariousRecess268 December 12, 2021 at 12:48 PM.

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