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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 13, 2021
6,660 Posts
Joined Mar 2004
Dec 13, 2021
practicalme
Dec 13, 2021
6,660 Posts
Quote from po-90260 :
US citizen. Paper bond is still in US. Bank says they have to visit the bank in person.
They can convert the bonds but they need the bonds to do so. So it's not that they can't cash them because they're out of the US, it's because the bonds are in the US and they aren't?
Dec 13, 2021
1,183 Posts
Joined Mar 2005
Dec 13, 2021
acegolfer
Dec 13, 2021
1,183 Posts
Quote from StephenH5221 :
What do we think about buying another $10K on January 1st?
Can't speak for others. But personally, I consider I-bonds as substitute for HYSA. So I'll be in for another $10k in 1/2022.
Dec 13, 2021
83 Posts
Joined Feb 2014
Dec 13, 2021
StephenH5221
Dec 13, 2021
83 Posts
Quote from Honest-IJM :
With the official CPI at 6.8%(actually much higher), you are losing value buying this government debt. The USD is on it's last legs if the Federal reserve keeps increasing the money supply. https://tradingeconomics.com/unit...-supply-m2
Diversify yourselves folks! Fiat always fails in the end.
If fiat fails, your portfolio won't be your biggest problem.
1
Dec 13, 2021
1,183 Posts
Joined Mar 2005
Dec 13, 2021
acegolfer
Dec 13, 2021
1,183 Posts
Quote from Pinchy :
I do have a serious question tho for the Financial experts.

Why not EE Bonds if EE is fixed though out the life of the bond.

If inflation ticks up after 6 months, I can sell the EE bond (lose 3 months of interest) and then repurchase for newer bond with higher rate.

If inflations does dive down then I just let it ride until redemption.

Especially with 0% base interest rate, I cant really lose right? LOL

Thanks
Despite the 30-yr maturity, ppl don't lock up their money in i-bond for 30 yrs. They can redeem any time after 1 yr. Many folks are using i-bond as emergency fund.

OTOH, EE bonds are designed to be kept for 20 yrs for the guaranteed 3.52% rate. So can't be used as emergency fund. If redeem before 20 yrs, you will earn 0.1% instead.
Last edited by acegolfer December 12, 2021 at 05:31 PM.
Dec 13, 2021
234 Posts
Joined Jan 2021
Dec 13, 2021
HilariousRecess268
Dec 13, 2021
234 Posts
Quote :
Quote :
Quote from Pinchy :
I do have a serious question tho for the Financial experts.

Why not EE Bonds if EE is fixed though out the life of the bond.

If inflation ticks up after 6 months, I can sell the EE bond (lose 3 months of interest) and then repurchase for newer bond with higher rate.

If inflations does dive down then I just let it ride until redemption.

Especially with 0% base interest rate, I cant really lose right? LOL

Thanks
Newly issued EE bonds are paying 0.1% interest. They are guaranteed to double in value over 20 years though regardless of the interest rate. They are not inflation protected, you you will only get 0.1%
Dec 13, 2021
337 Posts
Joined Jul 2008
Dec 13, 2021
rickster9
Dec 13, 2021
337 Posts
Do they still mail paper bonds?
Dec 13, 2021
1,183 Posts
Joined Mar 2005
Dec 13, 2021
acegolfer
Dec 13, 2021
1,183 Posts
Quote from rickster9 :
Do they still mail paper bonds?
Not for purchase from treasurydirect.gov. You will get paper bonds, if you purchase via tax refund.

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Dec 13, 2021
10,669 Posts
Joined Apr 2009
Dec 13, 2021
mdyoung
Dec 13, 2021
10,669 Posts
What a headache. Setup account and then you try to login they tell you some form needs to be submitted.
Looking at form need a certifying officer. If I go into my bank will they know what I talking about or look at me like I have two heads?
Dec 13, 2021
969 Posts
Joined Apr 2008
Dec 13, 2021
iguana
Dec 13, 2021
969 Posts
Quote from BalkiBartokomous :
Jesus Christ.... Currently Active Users Viewing This Thread: 12546 (7106 members and 5440 guests)
Jesus is lord not a swear word
5
Dec 13, 2021
1,183 Posts
Joined Mar 2005
Dec 13, 2021
acegolfer
Dec 13, 2021
1,183 Posts
Quote from mdyoung :
What a headache. Setup account and then you try to login they tell you some form needs to be submitted.
Looking at form need a certifying officer. If I go into my bank will they know what I talking about or look at me like I have two heads?
Most banks don't do "medallion" signature. Better not mention "medallion" to the branch manager. Just ask for signature guarantee.
Dec 13, 2021
536 Posts
Joined Nov 2005
Dec 13, 2021
Pinchy
Dec 13, 2021
536 Posts
^Thank you. nod

After carefully reading the difference, EE is not part of the 7%.



Quote from acegolfer :
Despite the 30-yr maturity, ppl don't lock up their money in i-bond for 30 yrs. They can redeem any time after 1 yr. Many folks are using i-bond as emergency fund.

OTOH, EE bonds are designed to be kept for 20 yrs for the guaranteed 3.52% rate. So can't be used as emergency fund. If redeem before 20 yrs, you will earn 0.1% instead.
Dec 13, 2021
26,269 Posts
Joined May 2006
Dec 13, 2021
namlook
Dec 13, 2021
26,269 Posts
Quote from JazzBlueRT :
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.
We will all be long gone before that happens.
Dec 13, 2021
1,836 Posts
Joined Mar 2007
Dec 13, 2021
anubis57
Dec 13, 2021
1,836 Posts
Quote from iguana :
Jesus is lord not a swear word


Not if you're Jewish.
1
1
1
Dec 13, 2021
26,269 Posts
Joined May 2006
Dec 13, 2021
namlook
Dec 13, 2021
26,269 Posts
This is a no brainer. 10K now, 10K in January and 5k when filing taxes.

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Dec 13, 2021
2,004 Posts
Joined Dec 2008
Dec 13, 2021
Proud2B
Dec 13, 2021
2,004 Posts
Seems better option for Tax Savings? any suggestions?

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