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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 14, 2021
695 Posts
Joined Dec 2007
Dec 14, 2021
breakingnews
Dec 14, 2021
695 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.
What's STK? Smilie
Dec 14, 2021
173 Posts
Joined Nov 2015
Dec 14, 2021
Hylin79
Dec 14, 2021
173 Posts
Not a bad alternative if you generally park some money in HYS's or CD's, plus the money is only tied up for a year. Also a great gift idea since it's below the gift tax limit to teach some young ones about money and interest basics. The $10k is a pretty good number, I wouldn't put anymore in this. People comparing this to equity, crypto, and other investment alternatives are missing the point. Don't use this as an investment or retirement savings vehicle, use it to park otherwise unused cash.

Also, there composite rate chart is misleading, here are the actual rates you would've gotten for the last 5 years:

1-Nov-21 7.12%
1-May-21 3.54%
1-Nov-20 1.68%
1-May-20 1.06%
1-Nov-19 2.22%
1-May-19 1.90%
1-Nov-18 2.83%
1-May-18 2.52%
1-Nov-17 2.58%
1-May-17 1.96%
Last edited by Hylin79 December 14, 2021 at 10:11 AM.
Dec 14, 2021
55 Posts
Joined Jun 2007
Dec 14, 2021
pipilu
Dec 14, 2021
55 Posts
Way to go, slickdeals! US government offer is officially being evaluated here for whether it is slick or not!
2
Dec 14, 2021
753 Posts
Joined Jan 2008
Dec 14, 2021
rballnut
Dec 14, 2021
753 Posts
How do you create account with your child? No driver's license....

Just throwing this out there... at 7.12%.... at 12 months minus 3 months interest.. nets ~5.34%...
Dec 14, 2021
1,183 Posts
Joined Mar 2005
Dec 14, 2021
acegolfer
Dec 14, 2021
1,183 Posts
Quote from rballnut :
How do you create account with your child? No driver's license....

Just throwing this out there... at 7.12%.... at 12 months minus 3 months interest.. nets ~5.34%...
1. How to open minor acct? https://www.treasurydirect.gov/in...#openminor

2. Your calculation assumes the rate stays at 7.12% in the 2nd 6 months. We don't know that.
Last edited by acegolfer December 14, 2021 at 10:34 AM.
Dec 14, 2021
6,660 Posts
Joined Mar 2004
Dec 14, 2021
practicalme
Dec 14, 2021
6,660 Posts
Quote from rballnut :
How do you create account with your child? No driver's license....

Just throwing this out there... at 7.12%.... at 12 months minus 3 months interest.. nets ~5.34%...
7.12 is only for the first 6 months. If the rate stays the same or similar at the second six months, you don't have to cash out at 12 months. Personally I'll wait to cash out until the rate is not great so that the three month penalty is as little as it can be. Unless interest rates rise dramatically, there's no reason to cash out if the bonds are earning more than the banks.
Dec 14, 2021
695 Posts
Joined Dec 2007
Dec 14, 2021
breakingnews
Dec 14, 2021
695 Posts
How do we get the interest that we earned at the end of 6 months ... or later? Technically, as max limit is 10k, they shouldn't hold more money than 10k, right?

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Pro
Dec 14, 2021
8,873 Posts
Joined Jul 2006
Dec 14, 2021
Nattefrost
Pro
Dec 14, 2021
8,873 Posts
When do you start earning interest? From date of deposit?
Dec 14, 2021
522 Posts
Joined Sep 2007
Dec 14, 2021
LmG7119
Dec 14, 2021
522 Posts
Quote from rballnut :
How do you create account with your child? No driver's license....

Just throwing this out there... at 7.12%.... at 12 months minus 3 months interest.. nets ~5.34%...
You have to create a custodian account.
Dec 14, 2021
522 Posts
Joined Sep 2007
Dec 14, 2021
LmG7119
Dec 14, 2021
522 Posts
Quote from breakingnews :
How do we get the interest that we earned at the end of 6 months ... or later? Technically, as max limit is 10k, they shouldn't hold more money than 10k, right?
$10K is a max contribution per year per SSN.
Dec 14, 2021
1,183 Posts
Joined Mar 2005
Dec 14, 2021
acegolfer
Dec 14, 2021
1,183 Posts
Quote from Nattefrost :
When do you start earning interest? From date of deposit?
Even if you buy today (12/14/2021), TD will consider you bought at (12/1/2021). So you already started earning interest.

However, the account balance will reflect the penalty (= last 3 months interest). So your balance will start changing from 3/1/2022, every month.
Last edited by acegolfer December 14, 2021 at 11:21 AM.
Dec 14, 2021
522 Posts
Joined Sep 2007
Dec 14, 2021
LmG7119
Dec 14, 2021
522 Posts
Quote from Nattefrost :
When do you start earning interest? From date of deposit?
https://retirementincomejournal.c...e-i-bonds/
Dec 14, 2021
634 Posts
Joined Aug 2009
Dec 14, 2021
optimize
Dec 14, 2021
634 Posts
Can one buy these for kids to bypass 10k limit e.g. self, spouse, kid 1 and kid 2 could be $40k in December 21 and another $40k in January 22?

And in that case, can one open account for minors?
Last edited by optimize December 14, 2021 at 11:21 AM.
Dec 14, 2021
1,183 Posts
Joined Mar 2005
Dec 14, 2021
acegolfer
Dec 14, 2021
1,183 Posts
Quote from optimize :
Can one buy these for kids to bypass 10k limit e.g. self, spouse, kid 1 and kid 2 could be $40k in December 21 and another $40k in January 22?

And in that case, can one open account for minors?
You can open a minor account under your account. You can buy for your kids. But it's their money. You can't spend it on you.

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Dec 14, 2021
27 Posts
Joined Jun 2011
Dec 14, 2021
advan13
Dec 14, 2021
27 Posts
Quote from acegolfer :
You can open a minor account under your account. You can buy for your kids. But it's their money. You can't spend it on you.
I think the parent can redeem and spend the ibond if they are the co-owner. So child will be primary owner and the parent the co-owner.

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