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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
707 Posts
Joined Dec 2013
Dec 12, 2021
dealzslick
Dec 12, 2021
707 Posts
Quote from acegolfer :
There's no secondary market so you can't short it. But why would you borrow at 7.12%? If you have good credit, you should be able to borrow at lower rate.
He's saying how to sort inflation linked bonds. I'm sure there's an ETF you can buy puts or just short. TIP for instance
1
Dec 12, 2021
60 Posts
Joined Mar 2019
Dec 12, 2021
JazzBlueRT
Dec 12, 2021
60 Posts
Quote from KMan :
Low risk? How about NO risk? The US government has never defaulted on a security, like, EVER. Its value might go down over time so there's a secondary market risk, which is true of nearly any security, plus the rate appears to be floating so you lock in nothing, but the underlying security itself is as safe as it gets.

That said, 7%? When did that happen in an era of near-0% prime rates?
These are fixed rate at 0%, The 7% is tied to inflation and the US Government can easily lower the rate of return by simply changing the definition of "inflation" as they will be doing in January.

The US will default on all debt at some time in the future, it is inevitable. So called long term investment by our politicians is being financed by short term debt. The merry-go-round of $30 trillion being rolled over annually will end catastrophically.
Dec 12, 2021
155 Posts
Joined Dec 2010
Dec 12, 2021
Matz
Dec 12, 2021
155 Posts
Quote from jonnydoo :
so how do I leverage these about 300x ?
Be a bank or hedge fund
Dec 12, 2021
2,366 Posts
Joined Oct 2005
Dec 12, 2021
ValueAmerica
Dec 12, 2021
2,366 Posts
Quote from Tuckin :
Voyager I get 9% on usdc $1=$1… I'm okay with that
This investment has 0% protection, 100% risk. No FDIC protection.
Basically they can close shop with your money and there is no recourse for you.
These instruments are total junk, no comparison for treasury bonds.
1
Dec 12, 2021
7,483 Posts
Joined Sep 2008
Dec 12, 2021
DogAndPony
Dec 12, 2021
7,483 Posts
Quote from acegolfer :
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.
I thought rates are updated every six months. And they were just updated in November, so they could change again in May. Is that not accurate?
Dec 12, 2021
395 Posts
Joined Dec 2008
Dec 12, 2021
TomHagen
Dec 12, 2021
395 Posts
Quote from Kissimmeegal :
Treasury Direct sucks. When my husband of 35 years died, they made me jump through hoops to get his money out, even though I had the Judges signed order granting me title to the funds and my husband's death certificate. Had to get my lawyer to help, even though at the time I could ill afford to put out money to pay attorney fees. Not only that, it took them two months to finally release the funds.
Good luck on getting the money back out if you need it.
Sounds like you should have sent an attorney for estate planning BEFORE his death
1
Dec 12, 2021
155 Posts
Joined Dec 2010
Dec 12, 2021
Matz
Dec 12, 2021
155 Posts
Quote from BobC8176 :
If you're not already worried about this entire Administration, you've been sleeping!
Sleeping, ironically just like the "leader" (puppet) of this administration
5

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Dec 12, 2021
25 Posts
Joined Oct 2010
Dec 12, 2021
Icarus1
Dec 12, 2021
25 Posts
Anyone know when the account balance is updated with the interest? I bought some in October and the balance is still the same. Does the balance update 6 months later?
Dec 12, 2021
31 Posts
Joined Nov 2013
Dec 12, 2021
JackPerry1976
Dec 12, 2021
31 Posts
Quote from KMan :
Low risk? How about NO risk? The US government has never defaulted on a security, like, EVER. Its value might go down over time so there's a secondary market risk, which is true of nearly any security, plus the rate appears to be floating so you lock in nothing, but the underlying security itself is as safe as it gets.

That said, 7%? When did that happen in an era of near-0% prime rates?
We are in strange new times bro!
Dec 12, 2021
1,908 Posts
Joined Sep 2014
Dec 12, 2021
1-6
Dec 12, 2021
1,908 Posts
Not today, Satan!
1
Dec 12, 2021
31 Posts
Joined Nov 2013
Dec 12, 2021
JackPerry1976
Dec 12, 2021
31 Posts
Yeah, I'll stick to crypto and precious metals, thanks!
4
Dec 12, 2021
4 Posts
Joined Nov 2020
Dec 12, 2021
EagerSink8831
Dec 12, 2021
4 Posts
Does the $10k limit apply to each individual separately? If you are filing taxes jointly and have a child, can you invest $10k in each name = $30k total?
Dec 12, 2021
1,183 Posts
Joined Mar 2005
Dec 12, 2021
acegolfer
Dec 12, 2021
1,183 Posts
Quote from DogAndPony :
I thought rates are updated every six months. And they were just updated in November, so they could change again in May. Is that not accurate?
partially correct. The new 6-mo interest rates are determined in April and October. But the rate on your i-bond gets updated at every 6 month anniversary by the prevailing rate. For example, if you bought it in 9/1/2021 when the rate was 3.54%, your 6-mo rate is 3.54% till 02/2022. Then in 3/1/2022, it updates to 7.12%. It doesn't get updated to 7.12% in 11/2021.


Quote from Icarus1 :
Anyone know when the account balance is updated with the interest? I bought some in October and the balance is still the same. Does the balance update 6 months later?
It gets updated every 1st of the month. In your case, no change because the balance reflects the 3 month penalty. On month-4, you will see change.
Dec 12, 2021
1,398 Posts
Joined Nov 2012
Dec 12, 2021
jhyman
Dec 12, 2021
1,398 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.
If your definition of always is 40 years and doesn't include real estate in Detroit or many other areas.

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Dec 12, 2021
2,184 Posts
Joined Aug 2014
Dec 12, 2021
Cmurphy16
Dec 12, 2021
2,184 Posts
Quote from JazzBlueRT :
These are fixed rate at 0%, The 7% is tied to inflation and the US Government can easily lower the rate of return by simply changing the definition of "inflation" as they will be doing in January.

The US will default on all debt at some time in the future, it is inevitable. So called long term investment by our politicians is being financed by short term debt. The merry-go-round of $30 trillion being rolled over annually will end catastrophically.
They've been saying that the US will default for decades. Through the 70s and 80: when inflation skyrocketed and interest rates soared. I'm not saying that the debt is sustainable. Each administration has increased it a lot, about 22 trillion in the last three administrations, not including the current. That's across both parties.

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