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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

3,499 Comments 1,455,858 Views
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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
40 Posts
Joined Nov 2008
Dec 13, 2021
colclasj
Dec 13, 2021
40 Posts
Quote from sd8384 :
Exactly! People are spending money like there is no tomorrow which is causing high inflation. This is government's way to incentivize people to start saving and taking the money out of circulation to reduce inflation. It is good effort in my opinion - a controlled implosion is coming (a drastic interest rate hike or fed abruptly stop buying securities etc..) to set system right otherwise inflation is here to stay for 3-5 year
The government printing money is the cause of that inflation.
1
Dec 13, 2021
88 Posts
Joined Sep 2004
Dec 13, 2021
temote
Dec 13, 2021
88 Posts
Sorry if this was already asked. It says $10k per calendar year so can I do 10k this month and another 10k next month?
Dec 13, 2021
234 Posts
Joined Jan 2021
Dec 13, 2021
HilariousRecess268
Dec 13, 2021
234 Posts
Quote from temote :
Sorry if this was already asked. It says $10k per calendar year so can I do 10k this month and another 10k next month?
Yes that works.
Pro
Dec 13, 2021
8,874 Posts
Joined Jul 2006
Dec 13, 2021
Nattefrost
Pro
Dec 13, 2021
8,874 Posts
Quote from NotFast :
And crypto is a complete risk-free venture? Tell me more.
i get those free coinbase crypto coins and i just let it sit there- im down 50% laugh out loud
Dec 13, 2021
594 Posts
Joined Nov 2013
Dec 13, 2021
apostlej2015
Dec 13, 2021
594 Posts
Quote from sdpoker :
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 = [fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation rate)]
Buddy look who is running the show. Inflation is at 9pct now. It doesnt goto 0 overnight either.
1
Dec 13, 2021
5,362 Posts
Joined Nov 2007
Dec 13, 2021
MBZ321
Dec 13, 2021
5,362 Posts
Quote from Cdub100 :
It's cute to see the boomers get all excited. Too bad inflation is closer to 16%
Yes inflation is high. Better to put it in an account earning 7% vs. like .5% in a rare high yield savings account, no?
Dec 13, 2021
14 Posts
Joined Jul 2016
Dec 13, 2021
rrhj
Dec 13, 2021
14 Posts
much better rate with GME
3

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Dec 13, 2021
595 Posts
Joined Aug 2019
Dec 13, 2021
Blahgod
Dec 13, 2021
595 Posts
I think I'll pass and just buy 3 TVs next year like normal.
Dec 13, 2021
195 Posts
Joined Aug 2013
Dec 13, 2021
kunolivia13
Dec 13, 2021
195 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?
30 trillions in debt.... default is coming....
Dec 13, 2021
2,842 Posts
Joined Jul 2009
Dec 13, 2021
keung
Dec 13, 2021
2,842 Posts
Quote from StephenH5221 :
Do you have to overpay the taxes to get the refund to invest?
Yes we are purposely withholding more for the sole purpose for getting more IBond
Dec 13, 2021
3,018 Posts
Joined Jun 2006
Dec 13, 2021
luk350
Dec 13, 2021
3,018 Posts
Thanks!
Dec 13, 2021
695 Posts
Joined Jan 2007
Dec 13, 2021
DA BE@RS!
Dec 13, 2021
695 Posts
Quote from sdpoker :
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 = [fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation rate)]
How long do you expect inflation to go down in?
Dec 13, 2021
756 Posts
Joined Dec 2004
Dec 13, 2021
Lancasterpa
Dec 13, 2021
756 Posts
This is how money makes money.
10K electronic + 5K paper bonds = 15K plus for wife another 15K total 30K
After the first of the year, you can get another 30K .... that is 60K invested in 30Days.
If this instrument stays at the same pace for a year, I am seeing a $4,272.00 profit for about an hour's work. This will be a nice egg for next Christmas.

You can also add more from your taxes somehow.
Dec 13, 2021
4,031 Posts
Joined Nov 2011
Dec 13, 2021
Eltorito
Dec 13, 2021
4,031 Posts
Quote from eyeofthetiger :
Lmao this post is dumb, who is still buying boomer bonds. Just put it in crypto, earn at least 9% on stablecoins and you can withdraw anytime. They even have a debit card you could use for purchases!
While I agree with you, diversifying is always a good idea. I own crypto and stocks, and this might be my first bond, lol.

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Dec 13, 2021
1,340 Posts
Joined Nov 2012
Dec 13, 2021
shortprong
Dec 13, 2021
1,340 Posts
Quote from KMan :
That you would compare the government and economy of the US to that of Zimbabwe says everything one needs to know about your level of economic sophistication and intelligence. And Treasury would have to "print" money at orders of magnitude higher than it has for what you ignorantly predicted to happen. It's like saying that because you spent a bit too much on Xmas presents this year, you're going to lose everything soon. Sheesh. Get a grip people. The sky is not falling and no real economist says otherwise. If you don't want to buy US securities, then don't.
WOW.. You better reread my comment

I replied to a statement made by someone else and in it's context was correct. Maybe you should look up what the word "if" means. The statement was not a comparison. It was a real life example of what CAN happen. I didn't predict the government was going to print money at any rate. I never said the sky was falling. Yes, clearly you know my education and economic sophistication and intelligence because you were unable to comprehend what I wrote. You were even able to read stuff I must have been thinking but never actually penned! I am not as intelligent (sic) as you so I can't say what your background is. I am glad you are able to distinguish "real' economists by a simple belief of what fits your perception of reality. Maybe you could teach me who the "real" professionals are in every occupation by your accurate one sentence explanations. This would save me a lot of time in life.

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