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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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
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Some argue that you don't get additional purchasing power with the money you put in, which is true. Then again if you plan on making a purchase with this money you would want it in the most liquid form possible. Also, even if you are making money in the other instruments, to covert that into purchasing power you are still being squeezed by inflation.
Bonds always have a place in your portfolio some time, some where. I think this will fit nicely for the money I don't need immediately, and keep an eye on inflation levels should it subside then move it elsewhere.
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
I am looking at historical rates over the past 5 years. The average seems to be around 2.5% a year, which isn't horrible if you are over 65 and need to park your money somewhere super safe.
Then again if you invested in Amazon 5 years ago, your investment would be worth 400% more, Walmart 200%, Bitcoin 300%.
If you are under 50, you are literally throwing money away investing in treasuries because of the time value of money. You aren't going to be wealthy turning $700 a year on $10,000.
If you believe the stock market is going to crash (it could), you should be keeping your money available, so you can buy stocks at the bottom.
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PS I know it's not the same type of bond, but it made me think of this.
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.
7.12% is great but only for 6 month kills it, I bet they will slash the rate in half after a while like any institutions would do. You would get better long term return with stock or crypto IMO.
If its through online, Wondering if I can redeem them even while I stay out of U.S as long as I have the active bank account ?
make sure you enter the extra payment in your tax return https://ttlc.intuit.com/community.../00/461340 [intuit.com]
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I mean, come on, folks. Peanuts.
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