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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
234 Posts
Joined Jan 2021
Dec 12, 2021
HilariousRecess268
Dec 12, 2021
234 Posts
Quote from bugelrex :
I think you have a good plan... if you are patient. It needs a catalyst for the pop. Examples
- china invades taiwan
- biden steps down due to health reasons
- scandal at the fed
- china stock market implodes due to real estate bubble
- if inflation keeps increasing or stays elevated
Open a ROTH ira and fund it for 2021 and then again for 2022 after the first of the year. Stash that cash in a money market fund until you are ready to invest it.
Dec 12, 2021
756 Posts
Joined Dec 2004
Dec 12, 2021
Lancasterpa
Dec 12, 2021
756 Posts
Quote from thehash :
technically it is less if you consider the taxes you have to pay.
Some of us don't have to pay taxes!
Dec 12, 2021
635 Posts
Joined Aug 2009
Dec 12, 2021
Maxim726X
Dec 12, 2021
635 Posts
Quote from DogAndPony :
You're talking LONG Term. Ten years! You only need to hold these bonds for one year. If you're expecting a downturn in the market why put it in there for a year and lose money?
You seem to be ignoring the first part of my response, you know... The up 24 YTD.

Even if the market tanks (i.e. loses 30%), still puts you ahead of these returns.
Dec 12, 2021
356 Posts
Joined Nov 2018
Dec 12, 2021
dealonlooker
Dec 12, 2021
356 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)]
It will take sometime for it go back to 0 😎
Dec 12, 2021
1,183 Posts
Joined Mar 2005
Dec 12, 2021
acegolfer
Dec 12, 2021
1,183 Posts
Quote from zzzkid :
so can you transfer to brokerage? I couldn't find details on this
It was asked earlier and already answered. The answer is NO. These are not marketable securities.
Dec 12, 2021
10,479 Posts
Joined Jun 2006
Dec 12, 2021
kwadguy
Dec 12, 2021
10,479 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)]

Once inflation goes back down?

Haha! That's a good one.

10 years of sub-market currency inflation along with trillions of dollars in pork? It's all over now, baby blue.
Dec 12, 2021
2,506 Posts
Joined May 2006
Dec 12, 2021
tivoboy
Dec 12, 2021
2,506 Posts
These are legit, but as others have pointed out the downside is only 10k per SSN and it will reset next March 2022. I fully expect the inflation number for THIS bond to be under 4% at that time. TWT. If it's worth it to park 10K there for 4/6th of the interest between now and then then I say have at it. It is free money for sure and it's quite an anomaly in the bond/bill options at this point in the economic cycle.

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Dec 12, 2021
943 Posts
Joined Mar 2021
Dec 12, 2021
BoastfulMice8832
Dec 12, 2021
943 Posts
Quote from teckel1927 :
And what is the us dollar backed by? Bwhahahah 😅👀😅😅
So Tether is doing something even worse, great!

What do you think would collapse first? The US farking dollar backed by the United States of America, or farking Tether

The choice is clear, good job we all know the obvious
Dec 12, 2021
1,183 Posts
Joined Mar 2005
Dec 12, 2021
acegolfer
Dec 12, 2021
1,183 Posts
Quote from tivoboy :
These are legit, but as others have pointed out the downside is only 10k per SSN and it will reset next March 2022.
If anyone is reading this, it's incorrect.

If you purchase now (December), your rate will not reset next March 2022. It will reset in June 2022. You will earn half of 7.12% for 6 months.

I bought mine in October, when rate was 3.54%. It stays at 3.54% for 6 months and resets to 7.12% in April, 2022.
Last edited by acegolfer December 12, 2021 at 12:08 PM.
Dec 12, 2021
6,660 Posts
Joined Mar 2004
Dec 12, 2021
practicalme
Dec 12, 2021
6,660 Posts
Quote from tivoboy :
These are legit, but as others have pointed out the downside is only 10k per SSN and it will reset next March 2022. I fully expect the inflation number for THIS bond to be under 4% at that time. TWT. If it's worth it to park 10K there for 4/6th of the interest between now and then then I say have at it. It is free money for sure and it's quite an anomaly in the bond/bill options at this point in the economic cycle.
The rate will reset every 6 months. So if you this month, it will reset June 1 to whatever the current rate (published May 1) will be.
Dec 12, 2021
234 Posts
Joined Jan 2021
Dec 12, 2021
HilariousRecess268
Dec 12, 2021
234 Posts
Quote :
Quote from StevenL9483 :
Is this comparable to TIPS?
acegolferBoth 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.
Also keep in mind that I Bonds have deflation protection. That is not something you get with TIPS. I know that inflation is the main issue now, but we have had deflation in the past.

Dec 12, 2021
2,506 Posts
Joined May 2006
Dec 12, 2021
tivoboy
Dec 12, 2021
2,506 Posts
Quote from practicalme :
The rate will reset every 6 months. So if you this month, it will reset June 1 to whatever the current rate (published May 1) will be.
Don't confuse THIS bond with YOUR bond.. THIS bond which anyone can purchase will earn that rate through End of March, 2022. That's it, and it will reset in April 2022.. just because one buys THIS bond in December 2021, does not mean that the rate isn't going to reset in April 2022 it will for everyone of THIS bond. The pricing for THESE bonds is SET twice a year, regardless of when who buys them. Another way to look at the example is, if one buys THIS bond in Jan 2022, one doesn't keep the rate (the rate now) till the end of July 2022.. the inflation adjusted rate will adjust in April 2022 come hell or high water. Up or down.

And, remember one has to hold them AT LEAST 12 months, so if the inflation number goes to 0%, you can't just cash them out in six months. Also, if you sell them between I think 12 months and 60 months, whatever the period you don't accrue the last 90 days of interest. So, there is essentially a 60 month holding period in order to get any full months/years of interest accrual. So, just be informed.
Last edited by tivoboy December 12, 2021 at 12:17 PM.
1
Dec 12, 2021
642 Posts
Joined Dec 2015
Dec 12, 2021
henare
Dec 12, 2021
642 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 depends on where you live. in a desirable part of California you can win big. most people don't live in desirable part of California.
Dec 12, 2021
1,183 Posts
Joined Mar 2005
Dec 12, 2021
acegolfer
Dec 12, 2021
1,183 Posts
Quote from tivoboy :
Don't confuse THIS bond with YOUR bond.. THIS bond which anyone can purchase will earn that rate through End of March, 2022.
Again incorrect.
1

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Dec 12, 2021
110 Posts
Joined Nov 2010
Dec 12, 2021
crazyslick
Dec 12, 2021
110 Posts
.gov will be conveniently changing the way it calculates inflation at the beginning of the new year. I can see inflation magically dropping a few percentage points in a few months.

Why change the formula you ask? Mid terms.
2

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