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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
118 Posts
Joined Feb 2011
Dec 13, 2021
Dshow
Dec 13, 2021
118 Posts
Just wondering how these work... I have an 'emergency fund' that I never intend to use that sits in a bank account earning next to nothing. If I invest that in I-Bonds, will it pay 7.12% on those funds forever until I sell it?

Thank you-
Dec 13, 2021
681 Posts
Joined Sep 2013
Dec 13, 2021
2deal
Dec 13, 2021
681 Posts
Quote from Dshow :
Just wondering how these work... I have an 'emergency fund' that I never intend to use that sits in a bank account earning next to nothing. If I invest that in I-Bonds, will it pay 7.12% on those funds forever until I sell it?

Thank you-
All the information is on the website
https://www.treasurydirect.gov/in...glance.htm

Short answer is no. Every 6 months the interest rate is recalculated for the next 6 months. It could go up if inflation goes up. It could go to 0% when inflation is low. Minimum 12 month term and you forfeit 3 months interest if you redeem before 60 months.

Series EE bonds do pay fixed interest for 30 years and are guaranteed to double in value after 20 years. EE bonds pay a pathetic 0.10 % interest now. If EE bonds ever get to 7% buy those. Fixed 7% no risk return would be great. Interest rates have been kept low for decades to prop up the stock market, housing market and broader economy in my opinion.
Last edited by 2deal December 13, 2021 at 06:04 AM.
Dec 13, 2021
1,183 Posts
Joined Mar 2005
Dec 13, 2021
acegolfer
Dec 13, 2021
1,183 Posts
Quote from Juans16 :
Hmm ok. So How will I know my earned? When ai cash it the bank will tell me?
If you log in to TD.gov, it will display the current balance for each i-bond you bought. It gets updated every month starting from month-4.

Quote from Dshow :
Just wondering how these work... I have an 'emergency fund' that I never intend to use that sits in a bank account earning next to nothing. If I invest that in I-Bonds, will it pay 7.12% on those funds forever until I sell it?

Thank you-
Many folks are using this as part of their emergency fund. No, 7.12% is not a fixed rate. It will stay at 7.12% APR for 6 months and gets adjusted to the new prevailing rate every 6 months. Nobody knows what the future rates are.
Global Mod
Dec 13, 2021
2,430 Posts
Joined May 2008
Dec 13, 2021
pur
Global Mod
Dec 13, 2021
2,430 Posts
Quote from Dshow :
Just wondering how these work... I have an 'emergency fund' that I never intend to use that sits in a bank account earning next to nothing. If I invest that in I-Bonds, will it pay 7.12% on those funds forever until I sell it?

Thank you-
The rate changes every six months. Can't really count it as an emergency fund until after the first year since your money is locked up until then (and then there is a 3-months interest withdrawal penalty for 4 more years)
Last edited by pur December 13, 2021 at 06:04 AM.
Dec 13, 2021
55 Posts
Joined Nov 2014
Dec 13, 2021
ttdevo
Dec 13, 2021
55 Posts
Quote from calabasasdan :
What if some series of events leads to deflation - can the value of these go down due to the variable component?
Nope. The rate never goes below zero. So these are super safe if deflation happens.
Dec 13, 2021
55 Posts
Joined Nov 2014
Dec 13, 2021
ttdevo
Dec 13, 2021
55 Posts
Quote from StevenS8282 :
Interest earned on I bonds are exempt from federal and local taxes (not financial advice).
No, ibonds are not exempt from federal tax. Only state and local taxes are exempt. You pay federal taxes on income earned from the interest.
Dec 13, 2021
2,842 Posts
Joined Jul 2009
Dec 13, 2021
keung
Dec 13, 2021
2,842 Posts
Quote from bobromano4 :
Thanks! This is great information. It sounds like you will be mailed paper bonds. I've recently had missed mail so this makes me nervous. Do you know if there's a way to have the bonds deposited into a Treasurydirect account instead of getting mailed paper bonds? Thanks!
Yes you get paper bonds from Tax return in $25, $50, $100, $200, for example I got $4000 tax return instead of 20 x$200 they sent me a mix of $25, $50, $100, $200.

Once you received the paper bonds then you need to goto TD to create a manifest with the bond# and value then you mail in those paper bond to TD. It took around 2 weeks for my deposited bond to show up and took my wife 4 weeks for her to show up in the account. I sent them in Oct 2021.

https://www.treasurydirect.gov/in...e_0508.htm

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Dec 13, 2021
12,166 Posts
Joined Jul 2005
Dec 13, 2021
dayv
Dec 13, 2021
12,166 Posts
Quote from thehash :
that's the type of thinking we had with real estate pre 2008. LMAO
if the government defaults on it's debt obligations you have a much larger problem to worry about.
Dec 13, 2021
15,688 Posts
Joined Nov 2010
Dec 13, 2021
80is
Dec 13, 2021
15,688 Posts
Quote from IndiaPaleAle :
Shame it's limited to 10 + 5k/yr.
that is to limit external buyers. the point is to pull the money out of the US
Dec 13, 2021
574 Posts
Joined Jan 2006
Dec 13, 2021
catman17
Dec 13, 2021
574 Posts
Quote from shark974 :
This is completely incorrect. But the party in power sure wants you to believe that.

Large scale macro inflation is ALWAYS the result of money printing and not one other thing. Some people will go to the ends of the earth to refuse to acknowledge this.

Anybody who thought we were going to inject 2 trillion of covid stimulus into the economy and it not have any inflationary effect was smoking crack. What a gigantic pork filled boondoggle beyond comprehension. Who even knows where any of that money went, other than what went directly to the public. It didn't accomplish a darn thing I promise you that. Not one road, daycare, or anything else was built. It all went poof, as always.
Conspiracy theory much? This is a post about I-bonds not politics. I bought these years ago and received over 6%. It was an awesome way to save money. This is a good safe play from my experience. Not risky crypto or stock market.
Last edited by catman17 December 13, 2021 at 06:30 AM.
Dec 13, 2021
2,640 Posts
Joined Oct 2007
Dec 13, 2021
langjie
Dec 13, 2021
2,640 Posts
Quote from keung :
He already pivoted and said to retire "transitory" u need watch news more often
And btw the inflation is transitory, if you look at definition of transitory = not permanent
Inflation can be going higher for 10-50 years then it drop back to below 2% , saying that is "transitory" is correct. since it is not permanent
using the term "transitory" in the first place was misleading at best. many people already knew that this was going to last for awhile. him and his buddies needed time to sell their stocks before the recession.
Dec 13, 2021
2,842 Posts
Joined Jul 2009
Dec 13, 2021
keung
Dec 13, 2021
2,842 Posts
Quote from 80is :
that is to limit external buyers. the point is to pull the money out of the US
Are you confusing this with TIPS? You cant buy iBond without a SSN so I don't think there is external (overseas?) buyer for this
Dec 13, 2021
13 Posts
Joined Oct 2020
Dec 13, 2021
LivelyFog1095
Dec 13, 2021
13 Posts
Question about interest. Can the interest be withdrawn every year and pay the federal tax? Or it can be withdrawn only when you cash out? Thinking of passive income strategy if we can cash out interest every year.
Dec 13, 2021
15,688 Posts
Joined Nov 2010
Dec 13, 2021
80is
Dec 13, 2021
15,688 Posts
Quote from dayv :
if the government defaults on it's debt obligations you have a much larger problem to worry about.
you can't default on your debt when you have the power to print. it's like someone running out of water standing next to the sea.

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Dec 13, 2021
108 Posts
Joined Dec 2007
Dec 13, 2021
Cdub100
Dec 13, 2021
108 Posts
Quote from MBZ321 :
Yes inflation is high. Better to put it in an account earning 7% vs. like .5% in a rare high yield savings account, no?
Yes, it's better to be in 7% than 0.5%, but the point is, and has been pointed out already in this thread there is a way better option with better rates that don't lock up your money.

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