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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
1,183 Posts
Joined Mar 2005
Dec 12, 2021
acegolfer
Dec 12, 2021
1,183 Posts
Quote from moops1 :
Btw treasury direct says you can open an account for your kids too. How do taxes work on these bonds - do u pay when you sell? Don't want to file taxes for the kids for now
Google Kiddie tax. Assuming your kid has no other income and the interest/investment income is less than $1150, he doesn't have to file 1080 and owes $0 tax. Parents don't include kid's unearned income in their 1080, either.
Dec 12, 2021
565 Posts
Joined Oct 2021
Dec 12, 2021
ShrewdStar3676
Dec 12, 2021
565 Posts
Quote from thehash :
technically it is less if you consider the taxes you have to pay.

Only Fed, not state
Dec 12, 2021
373 Posts
Joined Nov 2013
Dec 12, 2021
BrandonS5958
Dec 12, 2021
373 Posts
Quote from Pseudoty :
Just buy more Gold or Silver as a hedge against inflation.
Yea, cause that worked out well 🙄
Dec 12, 2021
916 Posts
Joined Jun 2007
Dec 12, 2021
Kissimmeegal
Dec 12, 2021
916 Posts
Quote from FrankFurter64 :
This wouldn't be an issue if your husband had also listed your name on the investments. This actually gives me faith that the system is working to prevent money from falling into the wrong hands. Maybe he intended it for himself only or for someone else.
As I already stated in this post, my name was also on the bonds. We did it that way to avoid any problems should something happen. It didn't help.
Dec 12, 2021
1,189 Posts
Joined Feb 2007
Dec 12, 2021
puzzleman
Dec 12, 2021
1,189 Posts
Gold.
They way the clowns in DC are handling things, US paper will be as welcomed as a check from your Nigerian uncle.
3
Dec 12, 2021
565 Posts
Joined Oct 2021
Dec 12, 2021
ShrewdStar3676
Dec 12, 2021
565 Posts
Quote from acegolfer :
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.




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.
not every first of the month. Every quarter
QA
Dec 12, 2021
872 Posts
Joined Mar 2005
Dec 12, 2021
EZ_slickdealz
QA
Dec 12, 2021
872 Posts
I recommend anyone looking at these, to do their own research on how they work... along with the accurate information on SD there is a lot of misinformation in this post. To go through all the posts here and correct the misinformation would take lots of effort and I'm sure would lead to further arguments from the internet experts. So, again, just make sure that you confirm the information on here prior to making any final decisions on whether these bonds are right for you and your situation. HTH

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Dec 12, 2021
1,398 Posts
Joined Nov 2012
Dec 12, 2021
jhyman
Dec 12, 2021
1,398 Posts
Quote from SarhoshAmiral :
There is no safe investment if US government defaults on these bonds. Any foreign currency would also be impacted big time by such an event. Bitcoin or likes wouldn't be safe either.

So for all practical purposes, one should assume US government will not default.
I don't know why people keep taking about the US government defaulting in this thread or how the dollar is no different than bitcoin. He might as well have just said the sun's gonna supernova at some point. While it's technically true, it's not something that should impact where you are putting 10K for the next year.
Dec 12, 2021
1,800 Posts
Joined Nov 2015
Dec 12, 2021
sdpoker
Dec 12, 2021
1,800 Posts
Quote from wacio :
The real inflation is 20%+ !!! Did you go shopping recently or bought house or car? 7% is a lie!
Well, 20% maybe for car. But for houses, it's more like 200%. EEK!
Dec 12, 2021
1,183 Posts
Joined Mar 2005
Dec 12, 2021
acegolfer
Dec 12, 2021
1,183 Posts
Quote from ShrewdStar3676 :
not every first of the month. Every quarter
What? The account balance in TD.gov only updates quarterly not monthly? That's different from what I was told. Can anyone confirm this?
Dec 12, 2021
916 Posts
Joined Jun 2007
Dec 12, 2021
Kissimmeegal
Dec 12, 2021
916 Posts
Quote from bsfatboy :
Did he have a will?
Yes, we did, and provided them a copy of it.
Dec 12, 2021
415 Posts
Joined Sep 2007
Dec 12, 2021
Bobmuhthol
Dec 12, 2021
415 Posts
Quote from acegolfer :
What? The account balance in TD.gov only updates quarterly not monthly? That's different from what I was told. Can anyone confirm this?
Interest is earned monthly.
Dec 12, 2021
916 Posts
Joined Jun 2007
Dec 12, 2021
Kissimmeegal
Dec 12, 2021
916 Posts
Quote from keung :
If your husband simply put you as his beneficiary (POD) or secondary owner the process should be a lot simpler.. https://www.treasurydirect.gov/in...dsecondary
I was the secondary owner. Didn't help.
Dec 12, 2021
3,456 Posts
Joined Nov 2013
Dec 12, 2021
Hatersgonnahate
Dec 12, 2021
3,456 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?
I used to price these for the government. (No joke, I used to compute the EE and I series rates for the government). The I rate is artificially high because legally a " savings bond" cannot lose money, even though TIPS/real yield is negative. So the floor is artificially 0% and then you get the benefits of the semiannual inflation computation looking back in the recent CPI-U print.

To give you an idea of the artificial pricing, if you purchase an actual marketable inflation protected security, TIPS, you will have to pay the issuer (government), for the inflation protection.

These are essentially subsidized rates. Good for investors and savers so take advantage of it.
Last edited by Hatersgonnahate December 12, 2021 at 05:16 PM.

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Dec 12, 2021
60 Posts
Joined Mar 2019
Dec 12, 2021
JazzBlueRT
Dec 12, 2021
60 Posts
Quote from Cmurphy16 :
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.
Everyone who said the US will default will be eventually proven right.

All empires end, whether through violent revolution or financial ruin. Trump, Obama, Clinton Bush, Biden none of them matter, it is the corruption of Congress which spends the money.

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