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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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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 14, 2021
2,164 Posts
Joined Mar 2012
Dec 14, 2021
djsvetljo
Dec 14, 2021
2,164 Posts
I see that there is no penalty after 5 years. Will I get penalty if I just cash the interest earned after 12 months?
Say I deposit $10k today, after 12 months it got to $12.5k and I cash $500?
Dec 14, 2021
969 Posts
Joined Apr 2008
Dec 14, 2021
iguana
Dec 14, 2021
969 Posts
Quote from waterfront :
q: 401k returns have been crazy off late with stock market all time highs . i would rather be interested in knowing..
if there a treasury product /bonds/note where we can park retirement savings with similar return rate? i would be more interested know about it vs this one where it is 10k capped!
though I don't like the guy, Schwab: SCHD
Dec 14, 2021
920 Posts
Joined Jan 2008
Dec 14, 2021
MikeyMarginal
Dec 14, 2021
920 Posts
Quote from tacoma99 :
I'll stay with my STK that pays about 5% quarterly and has had an average annular return of about 19% for 10 years.
So your investment will be worth about 25% less in 20 years than if you bought those stocks yourself given the 1.15% annual fee?
Dec 14, 2021
7,483 Posts
Joined Sep 2008
Dec 14, 2021
DogAndPony
Dec 14, 2021
7,483 Posts
Quote from daewoodude :
In case you need more people, feel free to PM me😂
lol, yeah just need your ssn. send it on over and I'll take care of you LMAO
Dec 14, 2021
3,829 Posts
Joined Oct 2015
Dec 14, 2021
goodness97
Dec 14, 2021
3,829 Posts
Quote from badmonopoly :
Idk what it's paid historically, but Vanguard on my 401 3B has averaged that for 4 years, now. I'm too lazy to change it and since company matches over double, I don't care.
What is STK?
Dec 14, 2021
3 Posts
Joined Oct 2021
Dec 14, 2021
SlickShopper777
Dec 14, 2021
3 Posts
It appears that the $10,000/year limit is for bond purchases, not total interest that may be earned.
Dec 14, 2021
1,208 Posts
Joined May 2004
Dec 14, 2021
Woz2000
Dec 14, 2021
1,208 Posts
Doesn't work that way. What you will get is part principle and the share of interest that the principle earned totaling $500.

Quote from djsvetljo :
I see that there is no penalty after 5 years. Will I get penalty if I just cash the interest earned after 12 months?
Say I deposit $10k today, after 12 months it got to $12.5k and I cash $500?

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Dec 14, 2021
1,183 Posts
Joined Mar 2005
Dec 14, 2021
acegolfer
Dec 14, 2021
1,183 Posts
Quote from djsvetljo :
I see that there is no penalty after 5 years. Will I get penalty if I just cash the interest earned after 12 months?
Say I deposit $10k today, after 12 months it got to $12.5k and I cash $500?
The penalty for redeeming between before 5 yrs but after 12 months is the last 3 months interest. You can redeem $500 but your account balance won't become $12.5k.

Quote from SlickShopper777 :
It appears that the $10,000/year limit is for bond purchases, not total interest that may be earned.
It's the purchase limit.
Dec 14, 2021
969 Posts
Joined Apr 2008
Dec 14, 2021
iguana
Dec 14, 2021
969 Posts
Quote from notebookgrail :
You can thru llc or s-corp. it is a seperate account using ein. I have set up for my 2 real llc and money is funded from the llc bank account. You can also buy via estates,
Not a plug: Rocket Dollar for LLC investment account. My business LLC is Northwest Agent. They handle the paperwork. Everything else is my fault.
Dec 14, 2021
234 Posts
Joined Jan 2021
Dec 14, 2021
HilariousRecess268
Dec 14, 2021
234 Posts
It is a shame what this thread has turned into. It should be about a safe, high yield option for the cash portion of your portfolio. Instead we have so many people chiming in about their risky (currently) higher yielding investments. There is a place for risk and safety in every portfolio, and I Bonds fits perfectly for many people right now. I Bonds are paying significantly higher than any other safe cash option like savings accounts or CDs. I Bonds are not a scam or gimmick, they have been around in their current form since the 90's.

I was reluctant to purchase a bond with a 0% fixed rate even with the inflation portion of the bonds paying so much. When you run the numbers, even paying the penalty that so many people are worrying about, the bonds pay much better than any 1 year CD you will find. Park the cash you can afford to tie up for at least a year in I Bonds and reevaluate after a year. If inflation is low and interest rates on savings or CDs is higher, sell the bonds put the money somewhere else. If you do your research, you will rarely find long periods of times where savings accounts beat inflation.

Diversification is the key to investment success. That same methodology also applies to many other aspects of life.
Dec 14, 2021
42 Posts
Joined Jan 2012
Dec 14, 2021
dmob336
Dec 14, 2021
42 Posts
Would it be better to just open a BlockFi account and have your money in a stablecoin like USDT earning 9.5% interest?
Dec 14, 2021
234 Posts
Joined Jan 2021
Dec 14, 2021
HilariousRecess268
Dec 14, 2021
234 Posts
Quote from dmob336 :
Would it be better to just open a BlockFi account and have your money in a stablecoin like USDT earning 9.5% interest?
You know what they say about something that seems too good to be true?
2
QA
Dec 14, 2021
872 Posts
Joined Mar 2005
Dec 14, 2021
EZ_slickdealz
QA
Dec 14, 2021
872 Posts
Just to add to what other folks are saying, this is a really good way to store your emergency fund that needs to be secure and somewhat accessible. Although it could be viewed as an "investment", I look at as a simple and safe way to park cash funds that would otherwise be sitting in a lower interest rate account like a savings or CD.

For our family, purchasing $20k of these funds is a great way to earn a few more bucks on some funds that would otherwise be sitting in a low interest account. We have other funds that are working harder for us but at much higher risk.
Dec 14, 2021
556 Posts
Joined Oct 2012
Dec 14, 2021
exciter1
Dec 14, 2021
556 Posts
The inflation rate for I Bonds has been above 7% several times over the past 10 years (as high as 7.43% in 2018). I noticed the higher rates on past bonds purchased when I was reviewing my account.
2

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Dec 14, 2021
52 Posts
Joined Jul 2010
Dec 14, 2021
unclepiu
Dec 14, 2021
52 Posts
Quote from sdpoker :
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 = [fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation rate)]
Inflation is back down? LOL what a joke

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