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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
556 Posts
Joined Oct 2012
Dec 13, 2021
exciter1
Dec 13, 2021
556 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.
I've been using Treasury Direct for 15 years and have never had an issue with an ACH withdrawal or cashing out. No forms needed, they'll just deposit into the same account your purchased with.
Dec 13, 2021
284 Posts
Joined Apr 2014
Dec 13, 2021
MaxV503
Dec 13, 2021
284 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.
The reason there are not 50 pages of comments like yours: savings bonds are simply, portable and redeemable anywhere in the country where there is a federally chartered bank or mailbox. Bernie Madoff never used them, so we got that going for us.
Dec 13, 2021
3,402 Posts
Joined Jan 2012
Dec 13, 2021
euuser1744668
Dec 13, 2021
3,402 Posts
Quote from SlickCrowd6832 :
For 6 months... then your rate goes close to zero and if you sell the bond you get penalized.
The base rate is 0%. The coupon is inflation right? Inflation will never go to zero.

Even if it does. You'll still get $175.
Dec 13, 2021
393 Posts
Joined Mar 2016
Dec 13, 2021
cwel
Dec 13, 2021
393 Posts
Quote from DerpVader :
Better link, takes you to the page explaining Series I bonds.
https://www.treasurydirect.gov/in...m#irateYou

We file 2021 tax next year in April 2022, and we already filed 2020 tax this past past April in 2021. So what is the process to allocate $5000 tax refund to purchase the bond now? Can you make a single $15k transaction with $10k from a bank account and $5k from 2020 tax refund?
Last edited by cwel December 13, 2021 at 11:05 AM.
Dec 13, 2021
45 Posts
Joined Feb 2015
Dec 13, 2021
cruisinforgold
Dec 13, 2021
45 Posts
Quote from Kissimmeegal :
Treasury Direct sucks. When my husband of 35 years died, they made me jump through hoops to get his money out, even though I had the Judges signed order granting me title to the funds and my husband's death certificate. Had to get my lawyer to help, even though at the time I could ill afford to put out money to pay attorney fees. Not only that, it took them two months to finally release the funds.
Good luck on getting the money back out if you need it.
Your husband should have placed a Payable On Death beneficiary which creates the transfer without need to wait on probate. Single owner bonds are part of the estate which is subject to probate rules by the state of residence.

Moral of story: create POD beneficiary at purchase
Dec 13, 2021
223 Posts
Joined Jun 2016
Dec 13, 2021
thievedrelic
Dec 13, 2021
223 Posts
Is the profit from the 10k (presumably $710) taxed at the year's end?
Dec 13, 2021
1,183 Posts
Joined Mar 2005
Dec 13, 2021
acegolfer
Dec 13, 2021
1,183 Posts
Quote from thievedrelic :
Is the profit from the 10k (presumably $710) taxed at the year's end?
First, the interest income is not $710 because 7.12% only applies for 6 months. The next 6-month rate is unknown.

Second, the default option is to pay tax when you redeem. But you can elect to pay tax each year.

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Dec 13, 2021
6,485 Posts
Joined Feb 2006
Dec 13, 2021
karrun
Dec 13, 2021
6,485 Posts
Quote from cruisinforgold :
Your husband should have placed a Payable On Death beneficiary which creates the transfer without need to wait on probate. Single owner bonds are part of the estate which is subject to probate rules by the state of residence.

Moral of story: create POD beneficiary at purchase

Can this be done after the fact?
Dec 13, 2021
45 Posts
Joined Feb 2015
Dec 13, 2021
cruisinforgold
Dec 13, 2021
45 Posts
Quote from karrun :
Can this be done after the fact?
How do I add a secondary owner or beneficiary to my securities?

Adding a secondary owner or beneficiary to securities registered in single ownership form is simple in TreasuryDirect. You can edit securities being held in Current Holdings; however, you cannot edit savings bonds held in your Gift Box. Securities in a Conversion Linked account (CLA) must first be transferred to a primary or another linked account in order to add a secondary owner.

Your electronic savings bonds and marketable securities may be registered in your name alone, your name with a secondary owner, or your name with a beneficiary. Each registrant's taxpayer identification number must be shown. Note: Registrations in entity accounts may not name a secondary owner or beneficiary. All securities in an entity account carry a registration identical to the entity account name.

To add a secondary owner or beneficiary to your securities registered in single ownership form:

Log into your primary TreasuryDirect® account.

Click the ManageDirect tab at the top of the page.

Under the heading Manage My Securities click "Edit" a registration.

On the Edit Security Registration page, choose the security type you want to edit and click "Select".

On the Summary page, choose the security or securities you wish to edit and click "Select" (you may edit up to 50 securities to the same registration).

On the Detail page, select the registration containing the secondary owner or beneficiary you desire from the drop-down box. (If you've never created the registration, you can do so by clicking "Add New Registration". Once you've created the new registration, the system will bring you back to the Detail page where you'll find the new registration listed in the drop-down box.) Note: Entity accounts may only have one registration. All securities in an entity account carry a registration identical to the entity account name.

Once you've selected the desired registration, click "Submit" to complete the change in registration for the security.
Dec 13, 2021
100 Posts
Joined May 2008
Dec 13, 2021
dealofsd
Dec 13, 2021
100 Posts
1) after buying a smaller amount, i dont see what interest they will give for next 6 months or its how they work?
2) after signing up, i just choose Series I under savings bonds Series I - An accrual-type security with a combination interest rate of a fixed and an inflation rate

I think this is the correct way of buying but not sure as i have never researched anything about Fed bonds.
Felt right as we get tax advantage( even if we pay taxes on interest, it will be less) and also atleast 3% even if interest goes to 1% next 6month which i feel not possible.
Pro
Dec 13, 2021
8,605 Posts
Joined Aug 2009
Dec 13, 2021
AznCracker
Pro
Dec 13, 2021
8,605 Posts
Quote from DogAndPony :
I just loaded up $40k between myself, wife and two kids. Will do another $40k in January. That is enough for me.
Do you have to create separate accounts to do this or can this be managed all under one account?
Dec 13, 2021
24 Posts
Joined May 2012
Dec 13, 2021
archygos
Dec 13, 2021
24 Posts
Quote from Slicksale :
Buy properties, safe bet.
This is a LOW yield investment. It's to keep up with inflation. If you want high yield you either invest in low risk (or high risk, if you so desire) cryptocurrencies or gamble on the stock market.
Dec 13, 2021
393 Posts
Joined Mar 2016
Dec 13, 2021
cwel
Dec 13, 2021
393 Posts
Quote from cruisinforgold :
How do I add a secondary owner or beneficiary to my securities?

Adding a secondary owner or beneficiary to securities registered in single ownership form is simple in TreasuryDirect. You can edit securities being held in Current Holdings; however, you cannot edit savings bonds held in your Gift Box. Securities in a Conversion Linked account (CLA) must first be transferred to a primary or another linked account in order to add a secondary owner.

Your electronic savings bonds and marketable securities may be registered in your name alone, your name with a secondary owner, or your name with a beneficiary. Each registrant's taxpayer identification number must be shown. Note: Registrations in entity accounts may not name a secondary owner or beneficiary. All securities in an entity account carry a registration identical to the entity account name.

To add a secondary owner or beneficiary to your securities registered in single ownership form:

Log into your primary TreasuryDirect® account.

Click the ManageDirect tab at the top of the page.

Under the heading Manage My Securities click "Edit" a registration.

On the Edit Security Registration page, choose the security type you want to edit and click "Select".

On the Summary page, choose the security or securities you wish to edit and click "Select" (you may edit up to 50 securities to the same registration).

On the Detail page, select the registration containing the secondary owner or beneficiary you desire from the drop-down box. (If you've never created the registration, you can do so by clicking "Add New Registration". Once you've created the new registration, the system will bring you back to the Detail page where you'll find the new registration listed in the drop-down box.) Note: Entity accounts may only have one registration. All securities in an entity account carry a registration identical to the entity account name.

Once you've selected the desired registration, click "Submit" to complete the change in registration for the security.
Can one purchase 2 x $10k = $20k for a joint (husband&wife primary/secondary) transaction?
Dec 13, 2021
118 Posts
Joined Feb 2011
Dec 13, 2021
Dshow
Dec 13, 2021
118 Posts
Quote from 2deal :
All the information is on the website
https://www.treasurydirect.gov/in...glance.htm [treasurydirect.gov]

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.
Thanks! I would guess that even if it adjusts every 6 months... It would still pay better than leaving the funds in a checking account...

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Dec 13, 2021
1,508 Posts
Joined Jul 2009
Dec 13, 2021
Rawimpact
Dec 13, 2021
1,508 Posts
I'm thinking of shorting this interest rate
2

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