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?
- Must register or sign-in to your free TreasuryDirect.gov account and link a bank account.
- Click here to view a Guided Tour
- 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%
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In case you're wondering, here's how the rate is computed:
Composite rate =
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.
https://www.treasurydir
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Even if it does. You'll still get $175.
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?
Good luck on getting the money back out if you need it.
Moral of story: create POD beneficiary at purchase
Second, the default option is to pay tax when you redeem. But you can elect to pay tax each year.
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Moral of story: create POD beneficiary at purchase
Can this be done after the fact?
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.
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.
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.
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.
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