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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
695 Posts
Joined Dec 2007
Dec 13, 2021
breakingnews
Dec 13, 2021
695 Posts
Quote from Tuckin :
Voyager I get 9% on usdc $1=$1… I'm okay with that
Is Voyager safe though??
Pro
Dec 13, 2021
8,605 Posts
Joined Aug 2009
Dec 13, 2021
AznCracker
Pro
Dec 13, 2021
8,605 Posts
Quote from dayv :
this isn't reddit, there are no downvotes for comments.
There is actually downvoted on the mobile app
1
Dec 13, 2021
969 Posts
Joined Apr 2008
Dec 13, 2021
iguana
Dec 13, 2021
969 Posts
been thinking about this (logically) for a couple of days

How can a government that is trillions of dollars in debt, a lot of it held by one warmongering protagonist, offer a premium payout, just so they can they get their hands on your real money, and give you a little bit at a time?

Ponzi scheme? Hail Mary?

Pass that bottle over here. It ain't empty.
3
Pro
Dec 13, 2021
8,605 Posts
Joined Aug 2009
Dec 13, 2021
AznCracker
Pro
Dec 13, 2021
8,605 Posts
Quote from ak15567 :
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.
Yes definitely not a investment vehicle to gain money, rather than to retain value. It might not be 7% next year but if it sits at 3% still way better than any CD right now
Dec 13, 2021
6,660 Posts
Joined Mar 2004
Dec 13, 2021
practicalme
Dec 13, 2021
6,660 Posts
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.
Quote from HilariousRecess268 :
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.
Exactly. I bought 2500 each in September, October, November and will here in December. Two bonds are currently earning 3.54, while the other two will each 7.12. The first two will shift to 7.12 in March and April for six months each while the other two will shift to the new rate (published 5/1/22) in May and June. As Hilarious states, the bonds you buy today will carry the published interest rate for six months and change (for better or worse) to the next published rate for six months and so on. Until you sell the bond. I have bonds from 2002/2003 that have a fixed rate greater than 0 so they're earning even more.
Dec 13, 2021
8,565 Posts
Joined Apr 2020
Dec 13, 2021
SlickCrowd6832
Dec 13, 2021
8,565 Posts
Quote from Mummel :
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.
might as well sign up for a credit card... get double and you don't have to pay taxes on it.
1
Dec 13, 2021
2,670 Posts
Joined Aug 2008
Dec 13, 2021
UnstableChimp
Dec 13, 2021
2,670 Posts
Quote from ak15567 :
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.
Well said. I purchased $5k in September purely for the option to have liquid assets that earn more than a savings account. I really like Voyager crypto USDC at 9%. It almost sounds too good to be true, but it's still working out, and seems to be a good way to diversify liquid assets. Perhaps Voyager Investment was already brought up in this thread? If not, I'm surprised people have not mentioned it.
1

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Dec 13, 2021
2,184 Posts
Joined Aug 2014
Dec 13, 2021
Cmurphy16
Dec 13, 2021
2,184 Posts
Quote from NunyaBidniz :
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...
The CPI has reported inflation over 5% for months.
Dec 13, 2021
2,670 Posts
Joined Aug 2008
Dec 13, 2021
UnstableChimp
Dec 13, 2021
2,670 Posts
Quote from breakingnews :
Is Voyager safe though??
Define safe? Are you asking if they can steal your money, and leave you with nothing? OR, are you asking if that rate is guaranteed indefinitely?

I would argue it can be safer than investing in the stock market, if you don't know anything about stocks.
Dec 13, 2021
2,670 Posts
Joined Aug 2008
Dec 13, 2021
UnstableChimp
Dec 13, 2021
2,670 Posts
Quote from pkp413 :
This investment has 0% protection, 100% risk. No FDIC protection.
Basically they can close shop with your money and there is no recourse for you.
These instruments are total junk, no comparison for treasury bonds.
So, I'm assuming you don't buy stock in any companies, because they could potentially close shop and there would be no recourse to recoup the money you invest? Do you even understand what Voyager is? I'm assuming you have no understanding of what the company does, and how they're able to offer 9% for USDC.
Dec 13, 2021
2,184 Posts
Joined Aug 2014
Dec 13, 2021
Cmurphy16
Dec 13, 2021
2,184 Posts
Quote from SlickCrowd6832 :
might as well sign up for a credit card... get double and you don't have to pay taxes on it.
You can only sign up for so many credit cards before you have to wait. And what am I supposed to do with 20k sitting around earning peanuts with no risk and no watching the prices go up and down on stocks or crypto? And check your math. It's a minimum of 355 on a 10k investment. Whatever the next six months brings doesn't matter as the penalty comes out of that.
Dec 13, 2021
234 Posts
Joined Jan 2021
Dec 13, 2021
HilariousRecess268
Dec 13, 2021
234 Posts

Our community has rated this post as helpful. If you agree, why not thank HilariousRecess268

Quote from iguana :
been thinking about this (logically) for a couple of days

How can a government that is trillions of dollars in debt, a lot of it held by one warmongering protagonist, offer a premium payout, just so they can they get their hands on your real money, and give you a little bit at a time?

Ponzi scheme? Hail Mary?

Pass that bottle over here. It ain't empty.
I Bonds have been around since the 90's and have always been tied to CPI-U, This is not a "special deal" to grab your money. Only reason the rate is so high now is that CPI-U (because of inflation) is high. The true crime is that the fixed rate is 0% right now because of the fed funds rate being 0%.

The bonds I bought in 2003 are paying 1.1% fixed on top of the inflation rate of 7.12%, so 8.32%. I never intended to hold the 2003 bonds this long. They were attractive because CD rates were so low and the treasury would let you buy them with a cash back credit card and no additional fee. Getting 2% cash back up front made them much better than any CD at the time. Rates have never gone back up enough to justify selling them.
2
Dec 13, 2021
1,183 Posts
Joined Mar 2005
Dec 13, 2021
acegolfer
Dec 13, 2021
1,183 Posts
Quote from ak15567 :
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.
Incorrect. The I-bond has paid more than 0.5% since 2008. What you are talking about is fixed rate. You completely ignored the inflation rate, which is part of the composite rate I-bond pays..
Dec 13, 2021
257 Posts
Joined Aug 2012
Dec 13, 2021
yoga4life
Dec 13, 2021
257 Posts
Quote from mdyoung :
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.
same happened to me. I am contacting them to see if there is a work around

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Dec 13, 2021
234 Posts
Joined Jan 2021
Dec 13, 2021
HilariousRecess268
Dec 13, 2021
234 Posts
Quote from Cmurphy16 :
The CPI has reported inflation over 5% for months.
Keep in mind that CPI is a year-over-year percentage. You are not seeing 5% one month after the next. For example if CPI was 12%, that would be an average of 1% a month for the past 12 months. Don't even get me started about all the games they play to fudge the CPI.
1

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