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expireddn90003 posted Dec 12, 2021 2:07 PM

US Treasury Series I Savings Bonds Inflation Rate Earnings (Nov '21 - April '22)

7.12% Interest

(Limit $10K/Year Per Person)
3,498 Comments
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Deal Details
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

Community Voting

Deal Score
+952
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Top Comments

sdpoker
1.8KComments
463Reputation
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 =
Go to Comment
webbiedo
4Comments
58Reputation
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.
Go to Comment
foxfai
5.2KComments
3.5KReputation
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
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3.5K Comments

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Dec 13, 2021 7:06 PM
10.9K Comments
Joined Apr 2009
mdyoungDec 13, 2021 7:06 PM
10.9K Comments
Went to my bank and they were unable to certify the form. More trouble than it's worth. After you have provided all your info to setup the account why the hell they need that form too, and not accept a notary seal. It's like they make it difficult on purpose to keep out the little guy.
Dec 13, 2021 7:11 PM
1.3K Comments
Joined Nov 2005
goferDec 13, 2021 7:11 PM
1.3K Comments
Quote from cwel :
Can one purchase 2 x $10k = $20k for a joint (husband&wife primary/secondary) transaction?
No, each person needs a separate account. You can make the spouse a co-owner or POD beneficiary on each account.
Dec 13, 2021 7:12 PM
253 Comments
Joined Oct 2015
NunyaBidnizDec 13, 2021 7:12 PM
253 Comments
Remember, the inflation rate they use is the "official"(ly misreported) rate from the CPI, which is far below the *real* rate. IIRC, the CPI is still being reported below 5%, when actual prices have ballooned by ~ 3x that over the past year. It's all in how you jigger w/ the "basket" of component benchmark prices...
Dec 13, 2021 7:19 PM
1.6K Comments
Joined Apr 2014
DayaODec 13, 2021 7:19 PM
1.6K Comments
Mine crypto, rather than this BS...ready for downvotes, but it's truth
1
2
Dec 13, 2021 7:21 PM
1.3K Comments
Joined Nov 2005
goferDec 13, 2021 7:21 PM
1.3K Comments
Quote from fadegs :
If I already maxed my 10K, can I purchase under my family member's SSN and redeem it later to my own bank account?
A family member could be an owner with you designated as a second owner. As I understand it, you would then have the ability to cash in the bond, except the owner (if still alive) would be ultimately responsible for the tax. If the owner dies, then you would be responsible for the tax if you cashed it in and did not declare the tax on the dead owner's final tax return.
Dec 13, 2021 7:24 PM
2.5K Comments
Joined Mar 2007
bgammillDec 13, 2021 7:24 PM
2.5K Comments
I am a well heeled OF (Old Fart). If my calculations are correct, In one year, we would earn on $10K X 2 + $5K tax refund = $25K *.0712 = $1,780...At todays rate (MAX 0.5% APY) in a Bank savings account, to earn $1,780, i would need to deposit $356,000 to yield the same $ of interest. (OBTW, it is not easy to find a yield of 0.50 APY in todays insane market!), So I am in.
Dec 13, 2021 7:28 PM
1.2K Comments
Joined Mar 2005
acegolferDec 13, 2021 7:28 PM
1.2K Comments
Quote from AznCracker :
Do you have to create separate accounts to do this or can this be managed all under one account?
separate account for each SSN.

Quote from cwel :
Can one purchase 2 x $10k = $20k for a joint (husband&wife primary/secondary) transaction?
Each can buy $10k but needs separate account.

Quote from bgammill :
I am a well heeled OF (Old Fart). If my calculations are correct, In one year, we would earn on $10K X 2 + $5K tax refund = $25K *.0712 = $1,780...At todays rate (MAX 0.5% APY) in a Bank savings account, to earn $1,780, i would need to deposit $356,000 to yield the same $ of interest. (OBTW, it is not easy to find a yield of 0.50 APY in todays insane market!), So I am in.
In the first 6 months, you will earn half of 7.12%. Nobody knows what the next rate will be for the 2nd 6 months. We will know on 4/12/2022.

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Dec 13, 2021 7:31 PM
99 Comments
Joined Nov 2020
UniqueSnail619Dec 13, 2021 7:31 PM
99 Comments
Complete Noob in this matter. What's the general consensus on this?
Dec 13, 2021 7:35 PM
776 Comments
Joined Jul 2009
RockPastaDec 13, 2021 7:35 PM
776 Comments
This is an amazing way to diversify some cash. Think of it as a variable rate CD starting at 7% that only changes every 6 months.

Has inflation ever been less than 2? no. So this is already better than every single CD has been for like... 30 years?

Amazing cash investment. 7% you might actually beat the market say.. if things go to shit real quick.. like they did today.
Dec 13, 2021 7:42 PM
360 Comments
Joined Aug 2011
play2winitDec 13, 2021 7:42 PM
360 Comments
Quote from UniqueSnail619 :
Complete Noob in this matter. What's the general consensus on this?
I took a day to think about it. It wouldn't make sense to "dump" 10k at this rate if you consider inflation may go up by the time of the next reset. Maybe if you put in a few thousand this round and wait until the reset to to put in more. Your limit is 10k so this is the reason.
Dec 13, 2021 7:43 PM
12.2K Comments
Joined Jul 2005
dayvDec 13, 2021 7:43 PM
12.2K Comments
Quote from DayaO :
Mine crypto, rather than this BS...ready for downvotes, but it's truth
this isn't reddit, there are no downvotes for comments.
Dec 13, 2021 7:47 PM
259 Comments
Joined Aug 2012
yoga4lifeDec 13, 2021 7:47 PM
259 Comments
Created an account and it is on hold. I have been asked to get a 'medallia' on a document since it requires a 'Authorized certifying officer' to sign it. I took it to Chase (where I primarily bank with) and they turned me away. Do you know who would sign this? the clause in the form says

"Authorized certifying officers are available at financial institutions, including credit unions, in the United States. Certification by a
notary isn't acceptable"
Dec 13, 2021 7:49 PM
16 Comments
Joined Jan 2017
ak15567Dec 13, 2021 7:49 PM
16 Comments
Here's my two cents.

7.12% sounds flashy and and it should, especially in the world of .4% HYSA. If you take a look at the history of I-bonds there hasn't been a time where it was greater than .5% since 2008. This is why no one mentions it until now. If this I-bond continues returning 7% we have a bigger issue on our hands. This isn't something you would diversify a lot, at tops especially if you're young this is 2% of your portfolio and it serves as "cash holdings". This AT BEST is an emergency fund reserve. If you have 6 months of emergency reserves, 3 months of it converted to I-bonds is not a bad idea. To go anything more than this is absurd. I-bonds will go back down and no one will care about them once inflation is back on track.
Dec 13, 2021 7:49 PM
249 Comments
Joined Jan 2021
HilariousRecess268Dec 13, 2021 7:49 PM
249 Comments
Quote from play2winit :
I took a day to think about it. It wouldn't make sense to "dump" 10k at this rate if you consider inflation may go up by the time of the next reset. Maybe if you put in a few thousand this round and wait until the reset to to put in more. Your limit is 10k so this is the reason.
You are not understanding how I Bonds work. If you are expecting inflation will be higher at the next rate reset buy all your bonds now. You will get the current rate until then and then the bond will reset to whatever the new rate is at that time. It will continue to earn the new rate and compound the entire year using 6 months at each rate.

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Dec 13, 2021 7:54 PM
6.7K Comments
Joined Mar 2004
practicalmeDec 13, 2021 7:54 PM
6.7K Comments
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.
That printing out forms and such are for converting paper bonds I think. Cashing out electronic bonds is as simple as buying them.

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