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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
1,183 Posts
Joined Mar 2005
Dec 13, 2021
acegolfer
Dec 13, 2021
1,183 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.
Suppose you buy $10k worth. After 12 months, suppose the balance increases to $10,500 ($10k principal + $500 interest). You can redeem partially like $1050, which includes $1k principal + $50 interest.

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?
If US defaults, your principal is not 100% safe. But I wouldn't stress about it.
Dec 13, 2021
8,138 Posts
Joined Jun 2007
Dec 13, 2021
DrRad
Dec 13, 2021
8,138 Posts
Quote from SyddDesert :
The limit is 10K. And for only 6 months. Not a good deal in my speculation
Risk free alternative that is state tax exempt? Link please....
Dec 13, 2021
3,694 Posts
Joined Jul 2019
Dec 13, 2021
94c107ea-869c-45a5-becd-c6b552
Dec 13, 2021
3,694 Posts
Quote from TrevorK :
Near 0% prime for decades is why we have inflation.
So why has inflation been on downward trend for decades until 21?
Dec 13, 2021
31 Posts
Joined Nov 2020
Dec 13, 2021
Fubar1764
Dec 13, 2021
31 Posts
Quote from Poweroverwhelmin :
Ok boomer
I never understood how this comeback was clever. . .it's an inside joke that was of dubious cleverness. It's like the participation trophy of comebacks.
Dec 13, 2021
410 Posts
Joined Mar 2004
Dec 13, 2021
DiogenesofSinope
Dec 13, 2021
410 Posts
Quote from keung :
Like what and what is the risk of losing your capital?

$NUSI
7.77% 12 month distribution yield.

https://nationwidefinancial.com/p...tails/NUSI

It's a risk managed income ETF. A Nationwide Financial product for retirees and the like who need to beat inflation but can't afford to risk their capital. The strategy is to write covered calls and buy protective puts to hedge. My capital is definitely more at risk than a Treasury Bond but I prefer this product over the longer term.
1
Dec 13, 2021
1,295 Posts
Joined Dec 2014
Dec 13, 2021
BrianH5624
Dec 13, 2021
1,295 Posts
Quote from Honest-IJM :
Rising gold prices are a sign of a failing currency, do you think the government would want to let that happen? The shorting on the precious metals is insane.
Here is a cautionary tale of Germany during the Weimar Republic:
https://en.m.wikipedia.org/wiki/H...r_Republic
Not the same as the papier mark was not the global currency.

Never before has a paper currency been the global standard.
Dec 13, 2021
1,295 Posts
Joined Dec 2014
Dec 13, 2021
BrianH5624
Dec 13, 2021
1,295 Posts
Quote from Fubar1764 :
I never understood how this comeback was clever. . .it's an inside joke that was of dubious cleverness. It's like the participation trophy of comebacks.
It's clever because boomers never understand why we say it.
2

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Dec 13, 2021
179 Posts
Joined Aug 2013
Dec 13, 2021
Poweroverwhelmin
Dec 13, 2021
179 Posts
Quote from Fubar1764 :
I never understood how this comeback was clever. . .it's an inside joke that was of dubious cleverness. It's like the participation trophy of comebacks.
Ok boomer
3
Dec 13, 2021
439 Posts
Joined Jul 2019
Dec 13, 2021
WoodenWineBox
Dec 13, 2021
439 Posts
Quote from chucktaylur :
So the only way to fund your treasury direct account is to push the money from your bank? Theres no way to pull from your bank using the treasury direct site?
I signed up two weeks ago and added my bank account number and routing and then after my account was set up I could select that bank when purchasing the I bonds, really easy
Dec 13, 2021
3,694 Posts
Joined Jul 2019
Dec 13, 2021
94c107ea-869c-45a5-becd-c6b552
Dec 13, 2021
3,694 Posts
Quote from DiogenesofSinope :
$NUSI
7.77% 12 month distribution yield.

https://nationwidefinancial.com/p...tails/NUSI

It's a risk managed income ETF. A Nationwide Financial product for retirees and the like who need to beat inflation but can't afford to risk their capital. The strategy is to write covered calls and buy protective puts to hedge. My capital is definitely more at risk than a Treasury Bond but I prefer this product over the longer term.
That's a great ETF in principal. It never ceases to amaze me how many ETFs there are for practically any investment strategy.
Dec 13, 2021
234 Posts
Joined Jan 2021
Dec 13, 2021
HilariousRecess268
Dec 13, 2021
234 Posts
Quote from DiogenesofSinope :
$NUSI
7.77% 12 month distribution yield.

https://nationwidefinancial.com/p...tails/NUSI [nationwidefinancial.com]

It's a risk managed income ETF. A Nationwide Financial product for retirees and the like who need to beat inflation but can't afford to risk their capital. The strategy is to write covered calls and buy protective puts to hedge. My capital is definitely more at risk than a Treasury Bond but I prefer this product over the longer term.
So you are willing to take on market risk for an additional 0.25% yield?
1
Dec 13, 2021
31 Posts
Joined Nov 2020
Dec 13, 2021
Fubar1764
Dec 13, 2021
31 Posts
Quote from BrianH5624 :
It's clever because boomers never understand why we say it.
Gen X here. Just never thought it was terribly clever. Perhaps I've read too much Oscar Wilde in my life. You do you though.
Dec 13, 2021
1,183 Posts
Joined Mar 2005
Dec 13, 2021
acegolfer
Dec 13, 2021
1,183 Posts
Quote from DiogenesofSinope :
$NUSI
7.77% 12 month distribution yield.

https://nationwidefinancial.com/p...tails/NUSI

It's a risk managed income ETF. A Nationwide Financial product for retirees and the like who need to beat inflation but can't afford to risk their capital. The strategy is to write covered calls and buy protective puts to hedge. My capital is definitely more at risk than a Treasury Bond but I prefer this product over the longer term.
0.68% expense ratio. This is not SD.
Dec 13, 2021
2,842 Posts
Joined Jul 2009
Dec 13, 2021
keung
Dec 13, 2021
2,842 Posts
Quote from DiogenesofSinope :
$NUSI
7.77% 12 month distribution yield.

https://nationwidefinancial.com/p...tails/NUSI [nationwidefinancial.com]

It's a risk managed income ETF. A Nationwide Financial product for retirees and the like who need to beat inflation but can't afford to risk their capital. The strategy is to write covered calls and buy protective puts to hedge. My capital is definitely more at risk than a Treasury Bond but I prefer this product over the longer term.
If this is the kind of risk I need to take I will just buy $IEP 16% yield from Uncle Icahn
How about $T @ 9%+
LUMN @ 8.4%

The whole point is iBond is a risk free investment,
if I just want yield and willing to take some risk (I also know how to write call and buy put to hedge)

People are throwing all kind of random names to comparing to a "risk free" investment
Yes US Gov always has a chance of default but IF that happens we are talking about financial armageddon and every asset class will be impacted
Last edited by keung December 13, 2021 at 08:03 AM.

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Dec 13, 2021
31 Posts
Joined Nov 2020
Dec 13, 2021
Fubar1764
Dec 13, 2021
31 Posts
Quote from Poweroverwhelmin :
Ok boomer
It's like congratulating yourself for a joke that was neither clever nor funny. Or as Oscar Wilde might put it (sic), "You deprive me of solitude without giving me company." Do better millennial, you're making everyone look bad.
1

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