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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
2,842 Posts
Joined Jul 2009
Dec 13, 2021
keung
Dec 13, 2021
2,842 Posts
Quote from langjie :
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.
I don't believe in conspiracy theory.
Frankly most all the Fed Governor could make a lot more money outside of the Government.
And if you look at how much of so call their shady investment made, the return is probably less than a daily gain of BTC, TSLA, RIVN or meme stock if their goal is just to milk $$, a career in the Fed Reserve is NOT the right place
2
Dec 13, 2021
681 Posts
Joined Sep 2013
Dec 13, 2021
2deal
Dec 13, 2021
681 Posts
Quote from StevenS8282 :
Interest earned on I bonds are exempt from federal and local taxes (not financial advice).
You pay federal tax on all savings bonds interest when you redeem them, unless you have less than $12500 (single) or $25000 (married) income that year.

If you want low risk low tax consider municipal bonds. They pay about 3 to 4% per year in dividends that are free of federal tax. The state income tax rate for muni bonds varies, in most states it is reduced or zero. If you make $80K per year or more that is comparable to a 4 to 5% taxable return.
Last edited by 2deal December 13, 2021 at 06:45 AM.
Dec 13, 2021
2,842 Posts
Joined Jul 2009
Dec 13, 2021
keung
Dec 13, 2021
2,842 Posts
Quote from Cdub100 :
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.
Like what and what is the risk of losing your capital?
Dec 13, 2021
2,842 Posts
Joined Jul 2009
Dec 13, 2021
keung
Dec 13, 2021
2,842 Posts
Quote from LivelyFog1095 :
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.
You only withdraw when you cash out
1
Dec 13, 2021
179 Posts
Joined Aug 2013

This comment has been rated as unhelpful by Slickdeals users.

Dec 13, 2021
234 Posts
Joined Jan 2021
Dec 13, 2021
HilariousRecess268
Dec 13, 2021
234 Posts
Quote from Poweroverwhelmin :
Ok boomer
Every generation of investors needs to learn their lesson by getting their ass handed to them by making a bad investment choice. Crypto may be yours.
1
Dec 13, 2021
2,640 Posts
Joined Oct 2007
Dec 13, 2021
langjie
Dec 13, 2021
2,640 Posts
Quote from keung :
I don't believe in conspiracy theory.
Frankly most all the Fed Governor could make a lot more money outside of the Government.
And if you look at how much of so call their shady investment made, the return is probably less than a daily gain of BTC, TSLA, RIVN or meme stock if their goal is just to milk $$, a career in the Fed Reserve is NOT the right place
https://www.cnbc.com/2021/09/09/f...cerns.html

sure, when the economy looks like it's about to recession is when these guys start having "ethics".

sure, being part of the fed influencing policy, no way of making money on that. it's a revolving door from fed to private.
https://www.bloomberg.com/news/ar...egal-chief

but you do you. I wish I had as much faith in the fed as you

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Dec 13, 2021
144 Posts
Joined Oct 2012
Dec 13, 2021
MarkT6712
Dec 13, 2021
144 Posts
In the event of a government default is my principal safe?

Is my only risk on this investment the loss of my interest payments or is it possible to lose my principal as well?
Dec 13, 2021
2,512 Posts
Joined Mar 2013
Dec 13, 2021
giantbruin
Dec 13, 2021
2,512 Posts
Quote from MarkT6712 :
In the event of a government default is my principal safe?

Is my only risk on this investment the loss of my interest payments or is it possible to lose my principal as well?
In the event of a government default, you'll have much bigger issues to worry about.
1
Dec 13, 2021
2,512 Posts
Joined Mar 2013
Dec 13, 2021
giantbruin
Dec 13, 2021
2,512 Posts
How does the IRS reporting for these work? I have an EIN that I opened a few years back in order to apply for a business credit card, but don't have a fully functioning business and thus don't actually pay any taxes on anything related to that EIN. What would my reporting requirements be if I buy I Bonds using that EIN?
Dec 13, 2021
234 Posts
Joined Jan 2021
Dec 13, 2021
HilariousRecess268
Dec 13, 2021
234 Posts
Quote from giantbruin :
How does the IRS reporting for these work? I have an EIN that I opened a few years back in order to apply for a business credit card, but don't have a fully functioning business and thus don't actually pay any taxes on anything related to that EIN. What would my reporting requirements be if I buy I Bonds using that EIN?
No offence, but this is probably the last place you want to go for tax information.
1
Dec 13, 2021
2,512 Posts
Joined Mar 2013
Dec 13, 2021
giantbruin
Dec 13, 2021
2,512 Posts
Quote from HilariousRecess268 :
No offence, but this is probably the last place you want to go for tax information.
Oh absolutely, I'm not looking for tax advice here, just asking from people who already hold these how these appear on tax returns.
Dec 13, 2021
1,003 Posts
Joined Jul 2012
Dec 13, 2021
annestrauss
Dec 13, 2021
1,003 Posts
Quote from Cdub100 :
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.
Tell me what they are please
Dec 13, 2021
12,166 Posts
Joined Jul 2005
Dec 13, 2021
dayv
Dec 13, 2021
12,166 Posts
Quote from 80is :
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.
that's not really how it works. can't satisfy debt obligations if they lack the authority to increase their debt.

it's more like dying of thirst because someone won't let you on their land to access water.

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Dec 13, 2021
13,819 Posts
Joined Oct 2007
Dec 13, 2021
godfather927
Dec 13, 2021
13,819 Posts
Quote from shaqoneal :
10k is a joke.

I mean, come on, folks. Peanuts.
It's $10k per SSN, per calendar year. Meaning $40k per couple over the next two months. Or $80k for a family of four. Yes, that still might be "peanuts" to you, but reminder that this is a website where a deal for a $1 off coupon on a $3 bottle of hand soap literally made the front page today. Everything is relative.
3

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