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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
234 Posts
Joined Jan 2021
Dec 13, 2021
HilariousRecess268
Dec 13, 2021
234 Posts
Quote from practicalme :
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.
Correct, and very surprising how many people are missing this point entirely. There are no guarantees in life, so make the best educated guess you can.
Dec 13, 2021
234 Posts
Joined Jan 2021
Dec 13, 2021
HilariousRecess268
Dec 13, 2021
234 Posts
Quote from PhilT7175 :
Why not just buy BTC instead?
This is becoming a religion with many preachers.
Dec 13, 2021
803 Posts
Joined Mar 2010
Dec 13, 2021
coli
Dec 13, 2021
803 Posts
Quote from StefanoM3235 :
This is so helpful. Thank you. Do the extra $5,000 need to be paid before the end of 2020, or can they be paid anytime before I file my tax return?
I think needs to be by 2021 if estimated tax, otherwise you can choose extension then you can pay in 2022.
Dec 13, 2021
8,565 Posts
Joined Apr 2020

This comment has been rated as unhelpful by Slickdeals users.

Dec 13, 2021
1,183 Posts
Joined Mar 2005
Dec 13, 2021
acegolfer
Dec 13, 2021
1,183 Posts
Quote from SlickCrowd6832 :
You may need a math lesson..

And it most likely will drop to .1% not 1%... WOW.

Now for your math lesson.

$10K @6 months = $356
Less: 3 months of interest... $178.
OP is 99% correct. You misunderstood the 3-month penalty. It's the last 3 months. If redeemed after 12 months, you forfeit month 10-12 interests = $25.xx (using OP assumption).

It's highly unlikely the next rate will drop to 0.1%. For that to happen, inflation rate has to be -1.31% between 12/2021 and 3/2022.
Last edited by acegolfer December 13, 2021 at 09:21 AM.
Dec 13, 2021
77 Posts
Joined Mar 2017
Dec 13, 2021
mr.macfarlane
Dec 13, 2021
77 Posts
Don't listen to the fake news media about transitory inflation. These are inflation bonds paying the highest I've seen in the past 20 years... it's no joke... I'm in for $10k
Dec 13, 2021
6,660 Posts
Joined Mar 2004
Dec 13, 2021
practicalme
Dec 13, 2021
6,660 Posts
Quote from SlickCrowd6832 :
You may need a math lesson..

And it most likely will drop to .1% not 1%... WOW.

Now for your math lesson.

$10K @6 months = $356
Less: 3 months of interest... $178.
When can I cash my I bonds?

After they are 12 months old.

If you cash an I bond before it is five years old, you will lose the last three months of interest.

So half of the 1% ($25) or half of the .01 ($2.50). Either way, I get to keep the $356.

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Dec 13, 2021
55 Posts
Joined Dec 2018
Dec 13, 2021
JoshP4020
Dec 13, 2021
55 Posts
CPI is getting a big adjustment on 1/1/2022, but this is a good deal for the next 6-12 months.
Last edited by JoshP4020 December 13, 2021 at 09:33 AM.
Dec 13, 2021
15 Posts
Joined Jan 2021
Dec 13, 2021
NavyMallard2397
Dec 13, 2021
15 Posts
I prefer crypto gains
1
Dec 13, 2021
114 Posts
Joined Apr 2011
Dec 13, 2021
gururise
Dec 13, 2021
114 Posts
Quote from pony :
Before you invest in US currency (bonds)...

Over 25% of the US Dollars in existence were created in the last 12 months.

The other 75% were created over the course of 103 years.

Although inflation has not caught up, this means the dollar has lost 33% of its value in just one year.
The US Gov't wants to print several trillion more in the coming year.
1
Dec 13, 2021
27 Posts
Joined Aug 2021
Dec 13, 2021
zapeddd
Dec 13, 2021
27 Posts
buy monero
Last edited by zapeddd February 24, 2024 at 01:36 PM.
Dec 13, 2021
218 Posts
Joined Oct 2015
Dec 13, 2021
itsallaboutthemusic
Dec 13, 2021
218 Posts
My comment will get buried, and its too bad. I spent an hour or so on this last month, then revisited again last week, just before this was posted. I won't read all 50 pg of comments, so its possible this has been discussed. We are in the year 2021. As has already been stated, the website is utter garbage. You can use ach for buying, but luckily for me just prior to buying, my spidey sense tingled. How, may you ask, do i cashout these bonds (remember, im in an all digital environment so far)? First, you request a form, print that out, fill it out. Then drive to post office, buy stamp/envelope, mail form. This is where things get really dicey... Trust government to xfer bond to correct bank/agent. Go physically to bank/agent and request sale of bond. Best case, you get your $ then. ASSUMING everything goes perfectly. Keep in mind, you were allowed to use ach to buy, so there is no reason you shouldn't be able to do the reverse. This procedure makes it a hard pass for me. You can make 10%-16% with two stable coins in a liquidity pool, and while thats not risk free, its better opportunity/cost than these bonds imo.
1
Dec 13, 2021
207 Posts
Joined Mar 2016
Dec 13, 2021
unicowmilker1
Dec 13, 2021
207 Posts
Quote from Nrkeene :
Thx op but Holy #*×!

7% on a tbill?! Causes me to really worry about inflation!
You're just getting worried now? Have you not seen what the government has been doing this year let alone the pandemic shutdowns and riots?😝
Last edited by unicowmilker1 December 13, 2021 at 09:49 AM.
Dec 13, 2021
741 Posts
Joined Sep 2013
Dec 13, 2021
chucktaylur
Dec 13, 2021
741 Posts
Quote from JamesW12 :
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
Thanks. I thought it was like a brokerage where you had to fund your account before making a purchase.

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Dec 13, 2021
55 Posts
Joined Dec 2018
Dec 13, 2021
JoshP4020
Dec 13, 2021
55 Posts
Quote from itsallaboutthemusic :
My comment will get buried, and its too bad. I spent an hour or so on this last month, then revisited again last week, just before this was posted. I won't read all 50 pg of comments, so its possible this has been discussed. We are in the year 2021. As has already been stated, the website is utter garbage. You can use ach for buying, but luckily for me just prior to buying, my spidey sense tingled. How, may you ask, do i cashout these bonds (remember, im in an all digital environment so far)? First, you request a form, print that out, fill it out. Then drive to post office, buy stamp/envelope, mail form. This is where things get really dicey... Trust government to xfer bond to correct bank/agent. Go physically to bank/agent and request sale of bond. Best case, you get your $ then. ASSUMING everything goes perfectly. Keep in mind, you were allowed to use ach to buy, so there is no reason you shouldn't be able to do the reverse. This procedure makes it a hard pass for me. You can make 10%-16% with two stable coins in a liquidity pool, and while thats not risk free, its better opportunity/cost than these bonds imo.
Are you sure about this? I'm reading in several places that if you purchase the bonds online you can redeem them online.

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