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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

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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

3,498 Comments

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Dec 12, 2021
123 Posts
Joined May 2013
Dec 12, 2021
pot_tiger
Dec 12, 2021
123 Posts
Quote from KMan :
The dollar is far far FAR from being worthless, based on what you wrote, for all sorts of reasons, from there being no other global currency able or likely to replace it to federal spending not being anywhere near as out of control as some folks make it out to be. The economy is growing, which sometimes leads to inflation as demand outpaces supply, and requires the money supply and federal spending to grow to match it. E.g. more people, more businesses, more consumer demand, more trade, requires more money, more infrastructure, and so on. We're experiencing inevitable bubbles, since economies don't expand or contract in a linear and steady fashion. Some are good, others bad, but they're inevitable. It's what happens over the long run that matters.
You had me until you mentioned that federal spending needs to grow. Unfortunately current circumstances are related to, among other things, excessive government spending and failure to allow private industry and its citizens too recuperate from an artificial recession during Covid.
3
Dec 12, 2021
271 Posts
Joined Jul 2009
Dec 12, 2021
Jahlapenoez
Dec 12, 2021
271 Posts

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Quote from puffyblowfish :
wait for a crash, then buy a 3x leveraged etf when everything tanks, spxl, tqqq, fas. hold for a year and slowly cash out before the next crash in 6 years.
This is terrible advice. To anyone who does not understand leveraged ETFs that rebalance daily, please do not try this. For that matter, please don't use leveraged ETFs unless you truly understand them.

Leveraged ETFs which rebalance daily will head towards zero value in a situation where you have frequent flips between positive and negative return days. You can have the market start the year at an index value of 100, end the year at 100, but see a leveraged ETF go towards a return of -90% IF during the year you had repeating cycles of up days and down days... moreso if the up and down days are highly volatile (like +3% one day, -3% the next day).
1
Dec 12, 2021
1,354 Posts
Joined Apr 2008
Dec 12, 2021
bigjonnee
Dec 12, 2021
1,354 Posts
Quote from Tuckin :
Voyager I get 9% on usdc $1=$1… I'm okay with that
Yes but the USgovernment could crack down on USDT whereas they will fight to protect these.
Dec 12, 2021
3,313 Posts
Joined Nov 2010
Dec 12, 2021
bchill
Dec 12, 2021
3,313 Posts
Quote from somax :
Getting error Page doesn't exist
https://thefinancebuff.com/how-to...bonds.html

I just pasted it into the site and it worked again. Maybe he is getting too many hits now. It is a very good and fully accurate explanation.
Dec 12, 2021
234 Posts
Joined Jan 2021
Dec 12, 2021
HilariousRecess268
Dec 12, 2021
234 Posts

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Quote from SiennaDeer8270 :
Yes this is a decent investment if you are saving up for a purchase in the next few years or if you feel stocks are overpriced and you want to time the market. But remember the guy who said he held this for 20 years? Bwahhhahahaha. Worst investment I have ever seen.
There is always a need for safe, long term, inflation protected cash. I use these bonds as the "upper tier" of my emergency funds. I keep about half of my emergency funds in I bonds and the rest in cash or CDs. Though the rate might not always be great when inflation drops, the spending power is more or less preserved. If I ever get in a situation where I need to access more than the cash I have on hand I can start selling off the I bonds with the lowest fixed rate that are older than 5 years. It is entirely about preserving a good cash stockpile for true emergencies. I like to keep my emergency fund at 1 year of expenses. Many people may think a 1 year emergency fund is excessive. I am sure there are plenty of people that wished they had that much easy to access cash available during this pandemic.
1
Dec 12, 2021
2,703 Posts
Joined Dec 2006
Dec 12, 2021
kitkat1
Dec 12, 2021
2,703 Posts
so madallion signature is needed when you change bank account info, i had a bank account info from 20 years ago that hasn't change but they haven't ask me for it yet so far.
Dec 12, 2021
3,378 Posts
Joined Sep 2007
Dec 12, 2021
Yosemity
Dec 12, 2021
3,378 Posts
Quote from KMan :
Scratching my head looking for an actual argument there, with supporting facts, logic, historical evidence, etc...

Are you an actual economic expert or do you just watch a certain "news" channel all the time?

An assertion, no matter how deeply felt or loudly made, is not an argument. And no, "It's obvious!" is not an argument, either. Nor is a personal insult or face palm.
Wow… are you lost? It doesn't take a certain new channel to see the actual results as they are happening. Just look around at the inflation, boarder, spending, debt ceiling, crime, lack of leadership, etc. etc. There's currently not a functioning administration in place, that is the 800 pound elephant in the room that nobody wants to talk about. Oh, I watch the Bloomberg channel on the internet since I don't have cable.
Last edited by Yosemity December 12, 2021 at 06:03 PM.
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Dec 12, 2021
60 Posts
Joined Oct 2014
Dec 12, 2021
StevenL9483
Dec 12, 2021
60 Posts
Is this comparable to TIPS?
Dec 12, 2021
397 Posts
Joined Nov 2014
Dec 12, 2021
EliteDealHunter
Dec 12, 2021
397 Posts

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Quote from HilariousRecess268 :
There is always a need for safe, long term, inflation protected cash. I use these bonds as the "upper tier" of my emergency funds. I keep about half of my emergency funds in I bonds and the rest in cash or CDs. Though the rate might not always be great when inflation drops, the spending power is more or less preserved. If I ever get in a situation where I need to access more than the cash I have on hand I can start selling off the I bonds with the lowest fixed rate that are older than 5 years. It is entirely about preserving a good cash stockpile for true emergencies. I like to keep my emergency fund at 1 year of expenses. Many people may think a 1 year emergency fund is excessive. I am sure there are plenty of people that wished they had that much easy to access cash available during this pandemic.
Exactly. Half the peeps in here want to compare this to putting money in stocks when it's a totally different strategy. Yes, if your entire savings is $10k then don't put them in these, but if $10k is a drop in the bucket then these are a nice way to hold back some cash while at the same time earning a guaranteed rate. The proper comparison here is a savings account yielding like 0.02% interest.
1
Dec 12, 2021
1,183 Posts
Joined Mar 2005
Dec 12, 2021
acegolfer
Dec 12, 2021
1,183 Posts
Quote from StevenL9483 :
Is this comparable to TIPS?
Both have inflation protection but they operate differently. Higher inflation rate increases interest rate on I-bond. It increases the face value of TIPS. The latter is closer to to a standard coupon bond.
Dec 12, 2021
748 Posts
Joined Nov 2007
Dec 12, 2021
amelen
Dec 12, 2021
748 Posts
Limit is $10k per person per year? Anyway to do more?
Dec 12, 2021
1,183 Posts
Joined Mar 2005
Dec 12, 2021
acegolfer
Dec 12, 2021
1,183 Posts
Quote from amelen :
Limit is $10k per person per year? Anyway to do more?
$10k limit per SSN per calendar year.

Trick: If married, you can technically front load now and gift $10k to each other every year. But also has caveats.
Dec 12, 2021
655 Posts
Joined Feb 2008
Dec 12, 2021
tolgabalci
Dec 12, 2021
655 Posts
Quote from James Mason :
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.
That's pretty awesome. I know you are bragging, but it's good to point out the value of how profitable real-estate can really be. Of course the Real Estate market does NOT always go up. There have been areas that have lost significant value. I remember a friend of mine lost about half the value of their homes in Florida about a decade back. Glad you've done well.
Dec 12, 2021
2,184 Posts
Joined Aug 2014
Dec 12, 2021
Cmurphy16
Dec 12, 2021
2,184 Posts
I had a bunch of money a few years back I didn't need anytime soon and had already maxed out all retirement options so I started buying 1k/month Feb-nov to create a tiered payout down the road.

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Dec 12, 2021
20 Posts
Joined Nov 2012
Dec 12, 2021
zzzkid
Dec 12, 2021
20 Posts
so can you transfer to brokerage? I couldn't find details on this

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