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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
410 Posts
Joined Mar 2004
Dec 13, 2021
DiogenesofSinope
Dec 13, 2021
410 Posts
Quote from HilariousRecess268 :
So you are willing to take on market risk for an additional 0.25% yield?
$NUSI is hedged with protective puts. Market goes down, my capital is protected although it'll be more volatile.

Additional yield is for longer term...The 7.12% here is because we have historically high inflation.
Dec 13, 2021
2,842 Posts
Joined Jul 2009
Dec 13, 2021
keung
Dec 13, 2021
2,842 Posts
Quote from Mummel :
How do you use a tax refund to make the purchase on their website?
Form 8888 in your tax return you need to file it when file your tax
https://www.irs.gov/refunds/using...ings-bonds
Dec 13, 2021
3,402 Posts
Joined Jan 2012
Dec 13, 2021
euuser1744668
Dec 13, 2021
3,402 Posts
Quote from keung :
Form 8888 in your tax return you need to file it when file your tax
https://www.irs.gov/refunds/using...ings-bonds
But if you place a $5k order today, you need to specify your bank as the account.

Do you then get an extra $5k on your return or what? This makes no sense.

How do you buy $5k worth right now using tax refund money? Thanks.

EDIT: Ah ok, it seems like you cannot purchase it right now. Only when you file the return and the treasury mails you the bond directly.
Dec 13, 2021
1,447 Posts
Joined Apr 2016
Dec 13, 2021
StefanoM3235
Dec 13, 2021
1,447 Posts
Quote from Mummel :
But if you place a $5k order today, you need to specify your bank as the account.

Do you then get an extra $5k on your return or what? This makes no sense.

How do you buy $5k worth right now using tax refund money? Thanks.
From my understanding you can't do it now you need to wait until your return?
Dec 13, 2021
16 Posts
Joined Sep 2012
Dec 13, 2021
PhilTr
Dec 13, 2021
16 Posts
Why not just buy BTC instead?
3
Dec 13, 2021
429 Posts
Joined Nov 2006
Dec 13, 2021
fadegs
Dec 13, 2021
429 Posts
If I already maxed my 10K, can I purchase under my family member's SSN and redeem it later to my own bank account?
Dec 13, 2021
3,402 Posts
Joined Jan 2012
Dec 13, 2021
euuser1744668
Dec 13, 2021
3,402 Posts
Are there other bonds like this where there are no caps? 7% is a decent return.

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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 DiogenesofSinope :
$NUSI is hedged with protective puts. Market goes down, my capital is protected although it'll be more volatile.

Additional yield is for longer term...The 7.12% here is because we have historically high inflation.
The protective hedge DOESNT fully hedge your capital look at the ETF from 2020/02/14 to 2020/03/14 It dropped from 26.94 to 23.76 a 11% lost of value, if NASDAQ didn't recover you are sitting at 10% lost. You are assuming NASDAQ will always go up.
Dec 13, 2021
3,009 Posts
Joined Dec 2008
Dec 13, 2021
badmonopoly
Dec 13, 2021
3,009 Posts
I'm not trading my meh toilet paper for single ply commercial TP. Nice try, OP.

The country needs to default. The politicians need burned at the stake.
2
Dec 13, 2021
234 Posts
Joined Jan 2021
Dec 13, 2021
HilariousRecess268
Dec 13, 2021
234 Posts
Quote from DiogenesofSinope :
$NUSI is hedged with protective puts. Market goes down, my capital is protected although it'll be more volatile.

Additional yield is for longer term...The 7.12% here is because we have historically high inflation.
Hedging works well until the hedging model breaks due to extreme market conditions. Hedged market risk is still risk, but less. Chances are that when the rate on I bonds resets in 6 months inflation will still be high. Way off topic here...
Dec 13, 2021
8,565 Posts
Joined Apr 2020
Dec 13, 2021
SlickCrowd6832
Dec 13, 2021
8,565 Posts
Quote from Mummel :
Are there other bonds like this where there are no caps? 7% is a decent return.
For 6 months... then your rate goes close to zero and if you sell the bond you get penalized.
Dec 13, 2021
3,460 Posts
Joined Oct 2006
Dec 13, 2021
waterfront
Dec 13, 2021
3,460 Posts
Pundits feel market in bubble . Cryptos will have tough times with China banning and India regulating and USA Europe soon to follow !!! This seems a good long term investment . Rates can't get any lower worst is seen
Dec 13, 2021
8,565 Posts
Joined Apr 2020
Dec 13, 2021
SlickCrowd6832
Dec 13, 2021
8,565 Posts
Quote from badmonopoly :
I'm not trading my meh toilet paper for single ply commercial TP. Nice try, OP.

The country needs to default. The politicians need burned at the stake.
Default on what?

Thank god for Joe.
3
Dec 13, 2021
6,660 Posts
Joined Mar 2004
Dec 13, 2021
practicalme
Dec 13, 2021
6,660 Posts
Quote from SlickCrowd6832 :
For 6 months... then your rate goes close to zero and if you sell the bond you get penalized.
It won't go to 0 in the next six months but it will probably go down. Even if it drops to 1%, still a decent return for a year.

10K at 7.12 for 6 months is $356
10K at 1.00 for 6 months is $50

Penalty for cashing prior to 5 years, last three months interest. $25

No bank CD is giving over 3% for 12 months. Plus I save another 5% in state income taxes over a bank.

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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 PhilT7175 :
Why not just buy BTC instead?
this is about high return with negligible risk.

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