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%
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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
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Rule: Gifted I-bonds only count against the recipient's limit in the year they are transferred to the recipient, not the year they are bought for the recipient (up to $10k/year per gift recipient from any TreasuryDirect account)
Strategy: Myself (Son) + Mom + Dad
My Treasury Direct Account:
2021 Nov: Buy $10k for my limit, Buy $10k gift for dad, Buy $10k gift for mom
2022 Jan: Buy $10k for my limit, Buy $10k gift for dad, Buy $10k gift for mom
Dad's Treasury Direct Account:
2021 Nov: Buy $10k for dad limit, Buy $10k gift for me (son), Buy $10k gift for mom
2022 Jan: Buy $10k for dad limit, Buy $10k gift for me (son), Buy $10k gift for mom
Mom's Treasury Direct Account:
2021 Nov: Buy $10k for mom limit, Buy $10k gift for me (son), Buy $10k gift for dad
2022 Jan: Buy $10k for mom limit, Buy $10k gift for me (son), Buy $10k gift for dad
This would get $180k invested starting at the November semi-annual rate. Because of the $10k recipient limit per year, this means the gifted I-bonds would have to be transferred over 4-years from 2023 to 2026 to the gift recipient's TreasuryDirect account assuming no other purchases were made from each TreasuryDirect account for the account holder themselves over this period, and the I-bond interest would accrue as normal in the gift box account in the interim.
Reference:
"Do bonds I've bought as gifts through TreasuryDirect but have not yet delivered to the gift recipient apply against my annual limit?
No. Gift bonds are purchased in the name and SSN of the gift recipient. They do not count against your annual limit even if you have purchased them through your TreasuryDirect account but have not yet delivered them. Gift purchases in TreasuryDirect count toward the annual limit of the recipient in the year they are delivered."
https://www.treasurydir
Also, $10K is not a real limit. It's per individual, but drop a tent stake for an LLC, etc. and can add as much as desired. That's like a ROTH IRA fake limit. Throw unlimited to IRA and convert.
Yes, one can partially redeem. There are certain restrictions such as has to be at least $25 redemption but won't matter to most.
Also, $10K is not a real limit. It's per individual, but drop a tent stake for an LLC, etc. and can add as much as desired. That's like a ROTH IRA fake limit. Throw unlimited to IRA and convert.
You can cash a minimum of $25 or any amount above that in 1-cent increments. If you cash only a portion of the bond's value, you must leave at least $25 in the TreasuryDirect account. Redemptions are comprised of principal and interest. (In a partial redemption, we pay interest only on the partial amount you cash.)
Rule: Gifted I-bonds only count against the recipient's limit in the year they are transferred to the recipient, not the year they are bought for the recipient (up to $10k/year per gift recipient from any TreasuryDirect account)
Strategy: Myself (Son) + Mom + Dad
My Treasury Direct Account:
2021 Nov: Buy $10k for my limit, Buy $10k gift for dad, Buy $10k gift for mom
2022 Jan: Buy $10k for my limit, Buy $10k gift for dad, Buy $10k gift for mom
Dad's Treasury Direct Account:
2021 Nov: Buy $10k for dad limit, Buy $10k gift for me (son), Buy $10k gift for mom
2022 Jan: Buy $10k for dad limit, Buy $10k gift for me (son), Buy $10k gift for mom
Mom's Treasury Direct Account:
2021 Nov: Buy $10k for mom limit, Buy $10k gift for me (son), Buy $10k gift for dad
2022 Jan: Buy $10k for mom limit, Buy $10k gift for me (son), Buy $10k gift for dad
This would get $180k invested starting at the November semi-annual rate. Because of the $10k recipient limit per year, this means the gifted I-bonds would have to be transferred over 4-years from 2023 to 2026 to the gift recipient's TreasuryDirect account assuming no other purchases were made from each TreasuryDirect account for the account holder themselves over this period, and the I-bond interest would accrue as normal in the gift box account in the interim.
Reference:
"Do bonds I've bought as gifts through TreasuryDirect but have not yet delivered to the gift recipient apply against my annual limit?
No. Gift bonds are purchased in the name and SSN of the gift recipient. They do not count against your annual limit even if you have purchased them through your TreasuryDirect account but have not yet delivered them. Gift purchases in TreasuryDirect count toward the annual limit of the recipient in the year they are delivered."
https://www.treasurydir
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You can cash a minimum of $25 or any amount above that in 1-cent increments. If you cash only a portion of the bond's value, you must leave at least $25 in the TreasuryDirect account. Redemptions are comprised of principal and interest. (In a partial redemption, we pay interest only on the partial amount you cash.)
That said, 7%? When did that happen in an era of near-0% prime rates?
How many more summers like 2020 do you think it will take to have some serious "changes" to the US? I'm not too optimistic about the direction this country is heading. Something to think about in long term investments.
BTC (and other crypto) and other investments are the hedge, not the dollar based stable coins.
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