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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 1,448,084 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
I actually think a lot of the inflation pressure will subside as we may actually see a big glut next year due to double ordering that is clearly has been happening as businesses tramping each other for limited production capacities and thus straining the system even more. If you are running a business and you have to make a decision to either rely on just in time delivery and not have a product/supplies/commodities due to extreme lead times or double order to make sure you don't have to shut down the decision is clear. The good thing wages will remain higher and this current environment might be a really good thing afterwards. Just a thought.
Dec 12, 2021
103 Posts
Joined Jan 2016
Dec 12, 2021
bond007taz
Dec 12, 2021
103 Posts
Is this considered giving investing advice? Didn't realize this site did this
Dec 12, 2021
3,125 Posts
Joined Aug 2015
Dec 12, 2021
Pi.314
Dec 12, 2021
3,125 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)]
so if i own a ibond from 10yrs ago, i get the 7% interest rate now?
Dec 12, 2021
7,397 Posts
Joined Nov 2006
Dec 12, 2021
KMan
Dec 12, 2021
7,397 Posts
Quote from DeeDon :
I remember back in the late 90's the Treasury bonds were around this level. I don't remember if they were I or EE bonds and what the prime rate was, though. This was before the dot com crash. I was criticizing my Mom for wasting her money on bonds when tech stocks were yielding at least 50%...guess who eventually ate his words a few years later...
Well I was referring to the primary market reality that Treasure has never ever ever not paid back a single cent and it quite literally the most reliable creditor in world history, as opposed to the secondary market reality that basically nothing is as reliable an investment as Treasury issues. Not necessarily anything most people will make a lot of money off of, but also something they're very, very unlikely to lose a lot of money on, especially if they stand firm and don't panic. That wouldn't be possible if, as some say baselessly, the federal government spent massively more than it could ever pay for other than through yet more debt. It's always paid back its debts and it's always reined in deficits, and I see no reason to believe this won't happen again based on what we're seeing now.

Oh, and btw people, the feds have always paid for things with debt. Literally no other way to do it that makes sense. But it's basically just a massive line of revolving credit that allows it to balance out spending through fat and lean years, obviating the need for austerity measures that whenever other countries tried them (and we did too on occasion), they backfired. Only 2 times we haven't been in debt was under Jefferson and Jackson, accomplished through massive spending cuts. Both directly led to the worst depressions up till that time, and in Jefferson's case left us nearly unprepared for the War of 1812 (that he helped start).
Dec 12, 2021
466 Posts
Joined Nov 2014
Dec 12, 2021
avitron142
Dec 12, 2021
466 Posts
Quote from acegolfer :
Yes, it's a good choice for you. Technically, the maturity is 30 yrs but you can redeem any time after 1 yr (partially or full). Most ppl don't hold for 30 yrs.



No. It's paper form. But you can add to TD acct.



TIPS is close to the traditional bond. It has a face value and fixed coupon rate.
The CPI affects its face value. OTOH, CPI affects I-bonds interest rate.
TIPS is a marketable security, meaning you can sell it in the 2ndary market. I-bonds can only be redeemed at the TD.gov.



No.



It's 10k per calendar yr
I better fill the 10k before the year end, thanks OP for the reminder. Do TIPS have a similar max?

Also a bit confused about TIPS - can you sell in the secondary market through treasury direct, or only if you buy them through a traditional broker?
Dec 12, 2021
36 Posts
Joined Aug 2018

This comment has been rated as unhelpful by Slickdeals users.

Dec 12, 2021
6,658 Posts
Joined Mar 2004
Dec 12, 2021
practicalme
Dec 12, 2021
6,658 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?
Look them up for their worth but chances are likely you're better off holding onto them with the rate so high. I have some from 2002 that are currently earning over 8% because the composite rate was over the current 0.

The yield being high is not like a stock price being high. Those I-bonds you currently hold are earning, or will earn, this 7.12 rate for 6 months.

As far as what kind of hit you'd see, you'll have to pay federal income tax on the interest.

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Dec 12, 2021
396 Posts
Joined Jun 2017

This comment has been rated as unhelpful by Slickdeals users.

Dec 12, 2021
546 Posts
Joined Mar 2013
Dec 12, 2021
The_Phone_Guy
Dec 12, 2021
546 Posts
Quote from webbiedo :
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.
This info was really helpful. Thank you!
Dec 12, 2021
7,397 Posts
Joined Nov 2006
Dec 12, 2021
KMan
Dec 12, 2021
7,397 Posts
Quote from MeatCatalog :
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.
Prove it. Saying it is not that. Show us how one led to the other. That one followed the other is not proof.

However, Americans already eat way too much much so that's a bad thing how? No one NEEDS meat. Housing, basic nutrition, health care, schools, sure, but not red meat. But that's a WHOLE other matter...
5
Dec 12, 2021
3,487 Posts
Joined Apr 2010
Dec 12, 2021
bonbon525
Dec 12, 2021
3,487 Posts
i think this is a good place to park your emergency funds as it at least alleviate inflation.
Dec 12, 2021
223 Posts
Joined May 2011
Dec 12, 2021
Chirsf
Dec 12, 2021
223 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.
Eh it's not ignorance it's just not something people trust. It could go to 0, it could go to a million, and not thinking it could do either while dismissing people as ignorant of it shows some ignorance of your own.

People are mining or buying things which are only valuable because someone else said they were. Same as everything else. If "goes to 0" isn't in your risk model then your risk model hasn't accounted for every condition. Don't dismiss someone for something which is possible and could happen simply because you don't think it'll happen. There is a reason people have said this for such a long period of time, it doesn't hurt you to acknowledge it rather than be condescending about it.
Dec 12, 2021
294 Posts
Joined May 2013
Dec 12, 2021
puffyblowfish
Dec 12, 2021
294 Posts
Quote from somax :
I actually think a lot of the inflation pressure will subside as we may actually see a big glut next year due to double ordering that is clearly has been happening as businesses tramping each other for limited production capacities and thus straining the system even more. If you are running a business and you have to make a decision to either rely on just in time delivery and not have a product/supplies/commodities due to extreme lead times or double order to make sure you don't have to shut down the decision is clear. The good thing wages will remain higher and this current environment might be a really good thing afterwards. Just a thought.
inflation is going nowhere. the national debt is $30T and heading to $40T in a couple years. Our entire tax revenue will be used to sevice this debt, leaving nothing to pay for government expenses. so they will have to print more money to pay for that. inflation is the plan. if everything goes up in price 10x, then gdp and government invome also goes up 10x. then they have a chance at paying down the national debt.
Dec 12, 2021
943 Posts
Joined Mar 2021
Dec 12, 2021
BoastfulMice8832
Dec 12, 2021
943 Posts
Quote from Follywood :
Crypto baby!
And do what with it goofy? Tether, the the top 5 largest crypto on earth, isn't even backed by the US dollar, it's literally a sham

LMFAO it's a farking joke
3

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Dec 12, 2021
6,658 Posts
Joined Mar 2004
Dec 12, 2021
practicalme
Dec 12, 2021
6,658 Posts
Quote from Pi.314 :
so if i own a ibond from 10yrs ago, i get the 7% interest rate now?
Yes. Check TD for the current value of the bond (you don't have to have an account to check) and it will show you the current interest rate you're earning. Note that it's possible that the current rate hasn't kicked in on your bond. Depends what month you bought it. But you will get 6 months of 7.12%.

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