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?
- Must register or sign-in to your free TreasuryDirect.gov account and link a bank account.
- Click here to view a Guided Tour
- 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%
Leave a Comment
Top Comments
In case you're wondering, here's how the rate is computed:
Composite rate =
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.
https://www.treasurydir
3,498 Comments
Sign up for a Slickdeals account to remove this ad.
1. This 7.12% rate on I bond is for next six months only (April 2022).
2. If, in April inflation is higher than today, they will earn higher, if inflation is less they will earn less for next six months, so basically rate changes every six months based on inflation.
3. You can keep these for 30 years or withdraw earlier (see #4 below)
4. You need to wait for 1 year before you can withdraw
5. If you withdraw between 1 yr and 5 yr, you lose last 3 months of interest (see #2 above, so if based on inflation if interest it was paying was reduced, you lose reduced interest)
6. After 5 year, no penalty so you don't lose last 3 months of interest
7. No state taxes on distribution (as per my understanding)
8. If you used for certain causes (like education) and your AGI is below certain value, you don't pay Federal tax as well (as per my understanding)
Treasurydirect.gov disagrees with you.
"The combined rate will never be less than zero. However, the combined rate can be lower than the fixed rate. If the inflation rate is negative (because we have deflation, not inflation), it can offset some of the fixed rate."
https://www.treasurydir
possible only for US person as per my understanding but if they are not US person, I wonder how they bought it in first place.
Sign up for a Slickdeals account to remove this ad.
As far as I know, the only way to cure inflation is to cut the amount of cheap money. There was a lot of inflation in the 1970's, In the 1980'a, the head of the Fed was Paul Volker; in 1981, to kill inflation, he pushed 30-year Government bonds to 14.8%.
They tell me History doesn't repeat itself, but, it often rhymes.
Close thread
What are three things that have no intrinsic value and can go to zero.
How did I do?
(of course gold and silver have intrinsic value, but it is much lower than it's present price)
https://thefinancebuff.
I mean, if she gave you a $100 bill, 30 years later that still be $100 30 years later if you kept it.
Nobody should have their retirement in government bonds only, this is a way to beat what a "high yield" savings account is offering these days.
Sign up for a Slickdeals account to remove this ad.
Leave a Comment