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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 15, 2021
2 Posts
Joined Sep 2018
Dec 15, 2021
SplendidWinter6180
Dec 15, 2021
2 Posts
stupid site. Received following message in email after opening the account :
Thanks again for opening a TreasuryDirect account. We are having difficulty verifying the information you provided when opening your account. For your protection, please complete the Account Authorization form https://www.treasurydirect.gov/pd...ctauth.pdf and mail it to Treasury Retail Securities Site, P.O. Box 7015, Minneapolis, MN 55480-7015. A hold has been placed on your account that will prevent you from accessing your account. After we receive and approve the Account Authorization form, the hold on your account will be removed. When you log into your account, check the Investor InBox section of your Treasury Direct account for an important message.
Dec 15, 2021
234 Posts
Joined Jan 2021
Dec 15, 2021
HilariousRecess268
Dec 15, 2021
234 Posts
Quote from MMPG :
If you argue with me using the 1 year time frame then you might get a valid point...
People who worry about the crash and keep worrying...they are losing all the gain they could have had during the whole worrying time...sure thing it crash in 2008 but it didn't take long (approx 4 years).to recover to where it was and triple since then..
The 1929 crash took 25 years to break even. That is a long time to hold on waiting for a recovery. If you have that kind of time frame and the guts to tough it out, go for it. Don't say it can't happen again. The point is that you never know how the market will play out. You could see huge gains or a 20 year bear market. There is always a pace in everyone's portfolio for some safe cash. This bond is not about making huge gains. It is about preservation of capital.
Dec 15, 2021
26 Posts
Joined Jan 2009
Dec 15, 2021
Badlands8
Dec 15, 2021
26 Posts
Quote from luckydog97 :
So…a typical government contract.

Remember the obamacare website day one? It was something like 17x (yes, seventeen fold) over budget and months late, and it crashed day one and was down for a while after. LMAO
Much of what you said is false. The website launched on the scheduled date. The website was slow and had many glitches the first week due to the higher than anticipated traffic, but it didn't "go down for a while." I picked my plan on day 2.
1
Dec 15, 2021
1,473 Posts
Joined Sep 2011
Dec 15, 2021
sdeal_77
Dec 15, 2021
1,473 Posts
Quote from SplendidWinter6180 :
stupid site. Received following message in email after opening the account :
Thanks again for opening a TreasuryDirect account. We are having difficulty verifying the information you provided when opening your account. For your protection, please complete the Account Authorization form https://www.treasurydirect.gov/pd...ctauth.pdf and mail it to Treasury Retail Securities Site, P.O. Box 7015, Minneapolis, MN 55480-7015. A hold has been placed on your account that will prevent you from accessing your account. After we receive and approve the Account Authorization form, the hold on your account will be removed. When you log into your account, check the Investor InBox section of your Treasury Direct account for an important message.
While normally I am the one to get this, it ended up being that my wife had to be validated and mine went through without hiccups. Go to your bank and get a signature and mail it. They will unlock it
Dec 15, 2021
97 Posts
Joined Jan 2018
Dec 15, 2021
uhammer
Dec 15, 2021
97 Posts
Quote from webbiedo :
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.
Genuine question: Regarding the $10K/year, is that per calendar year? So if I buy $10K today in Dec 2021, would I be able to buy another $10K come Jan 2022? Or, is that $10K/year counted in 12 month increments between purchases? TIA.


Dec 15, 2021
234 Posts
Joined Jan 2021
Dec 15, 2021
HilariousRecess268
Dec 15, 2021
234 Posts
Quote from uhammer :
Genuine question: Regarding the $10K/year, is that per calendar year? So if I buy $10K today in Dec 2021, would I be able to buy another $10K come Jan 2022? Or, is that $10K/year counted in 12 month increments between purchases? TIA.T
This question has been answered many times in this thread. Yes, you can buy $10K now and again next month.
Dec 15, 2021
234 Posts
Joined Jan 2021
Dec 15, 2021
HilariousRecess268
Dec 15, 2021
234 Posts
Quote from optimize :
This sounds really odd. Once redeemed (= cashed) it's weird/impossible to have the restriction that only the kid in the family can spend!
Moving $10K between accounts of other people (even family members) very quickly attracts the attention of the IRS and feds watching for money laundering activities.
1

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Dec 15, 2021
2,842 Posts
Joined Jul 2009
Dec 15, 2021
keung
Dec 15, 2021
2,842 Posts

Quote from Dealerer :
Step 1: Create inflation
Step 2: Create bonds to "protect" people against inflation
Step 3: Sell bonds like hotcakes
...
Profit
If there is profit to be made every bank and financial institution will do the same product.
Never realize how smart some of our fellow SDer are, however this thread certainly pull out a lot of genius in the forum
Dec 15, 2021
4,456 Posts
Joined Nov 2013
Dec 15, 2021
luckydog97
Dec 15, 2021
4,456 Posts
Quote from arfanbarkler :
Much of what you said is false. The website launched on the scheduled date. The website was slow and had many glitches the first week due to the higher than anticipated traffic, but it didn't "go down for a while." I picked my plan on day 2.
Nice CNN style attempt at rebranding the truth.

So yes. It was quoted just shy of $100M, and ran up over $1.6B LMAO. It had more than volume issues. It was also riddled with logical bugs. Mu fiancé is a senior developer and has read deeply into it. It should have been extensively tested and for the cost, handled the volume and run like clockwork on day one but it was garbage for over a month.

Government incompetence at its finest, not to mention its a boondoggle wrapped around more government incompetence trying to run healthcare. Slow clap…
2
Dec 15, 2021
10,669 Posts
Joined Apr 2009
Dec 15, 2021
mdyoung
Dec 15, 2021
10,669 Posts
Quote from SplendidWinter6180 :
stupid site. Received following message in email after opening the account :
Thanks again for opening a TreasuryDirect account. We are having difficulty verifying the information you provided when opening your account. For your protection, please complete the Account Authorization form https://www.treasurydirect.gov/pd...ctauth.pdf and mail it to Treasury Retail Securities Site, P.O. Box 7015, Minneapolis, MN 55480-7015. A hold has been placed on your account that will prevent you from accessing your account. After we receive and approve the Account Authorization form, the hold on your account will be removed. When you log into your account, check the Investor InBox section of your Treasury Direct account for an important message.
Same thing for me. Why have you provide all your info to setup the account and then tell you you can't use it unless you submit that form. I have no idea where to get the form certified. Tried my bank and they couldn't do it.
Dec 15, 2021
223 Posts
Joined Nov 2012
Dec 15, 2021
solomonchau
Dec 15, 2021
223 Posts
I had these growing up in the 90's. They are minimal risk but also lack much growth potential. From my experience, I have had missing opportunities when Google and Amazon was less than $100. Now that I'm 36, I can verify these are garbage in comparison to what is available now like ETFs and cryptocurrency.
2
Dec 15, 2021
1,412 Posts
Joined Jan 2020
Dec 15, 2021
SiennaDeer8270
Dec 15, 2021
1,412 Posts
Quote from HilariousRecess268 :
The 1929 crash took 25 years to break even. That is a long time to hold on waiting for a recovery. If you have that kind of time frame and the guts to tough it out, go for it. Don't say it can't happen again. The point is that you never know how the market will play out. You could see huge gains or a 20 year bear market. There is always a pace in everyone's portfolio for some safe cash. This bond is not about making huge gains. It is about preservation of capital.
Preservation of capital is fine for short periods of time. If you are scared of a 25 year bear market, you will never become wealthy. Safe cash is only needed as you near retirement. Holding cash for 20 years is one of the worst financial decisions you can possibly make.
1
Dec 15, 2021
263 Posts
Joined Jul 2015
Dec 15, 2021
alfasub
Dec 15, 2021
263 Posts
Quote from HilariousRecess268 :
Moving $10K between accounts of other people (even family members) very quickly attracts the attention of the IRS and feds watching for money laundering activities.
Do you have any reference / information to support this? Could you provide any links?
Last edited by alfasub December 14, 2021 at 09:40 PM.
Dec 15, 2021
162 Posts
Joined Sep 2006
Dec 15, 2021
CinnabonBoy
Dec 15, 2021
162 Posts
Quote from coli :
If I use tax refund to buy the bond will it automatically show up in my TreasuryDirect account?
They will show up automatically if you use the direct deposit section with your TreasuryDirect info. Else, you will get paper bonds that you will have to convert to the TreasuryDirect account.

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Dec 15, 2021
162 Posts
Joined Sep 2006
Dec 15, 2021
CinnabonBoy
Dec 15, 2021
162 Posts
Quote from mdyoung :
Same thing for me. Why have you provide all your info to setup the account and then tell you you can't use it unless you submit that form. I have no idea where to get the form certified. Tried my bank and they couldn't do it.
Most banks/CUs should be able to handle this. Ask for the branch manager.

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