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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 16, 2021
130 Posts
Joined Mar 2015
Dec 16, 2021
jshcoyle
Dec 16, 2021
130 Posts
Awesome. I just set one up myself putting in $10k.

Can I do the same with my wife and each of my two boths for $40k total? Is the $10k limit per individual? Seems like it but would like to see if anyone knows for sure.

EDIT: Someone posted a link to the answer, which I'll just paste below for anyone else.

Purchase Limit
I Bonds are such a great deal that the government puts a limit on how much you can buy each year. At current rates, you should get your full quota before you buy any other CDs or bond funds.

When you buy on the government website TreasuryDirect.gov, the limit is $10,000 each calendar year per Social Security Number as the primary owner in a personal account. When you buy using money from your tax refund, the limit is $5,000 per tax return (not per person when you file jointly).

If you have a trust, you're allowed to buy another $10,000 each calendar year in a trust account. See Buy More I Bonds in a Revocable Living Trust.

If you have a business, the business can also buy $10,000 each calendar year. See Buy I Bonds for Your Business: Sole Proprietorship, LLC, S-Corp.

If you have kids under 18, you can also buy $10,000 each calendar year in each of your kids' names. See Buy I Bonds in Your Kid's Name.

A married couple each with a trust and a self-employment business can buy up to $65,000 each calendar year, and more if they also buy in their kids' names.

$10,000 in Person A's personal account with Person B as the second owner
$10,000 in Person B's personal account with Person A as the second owner
$10,000 in an account for Person A's trust
$10,000 in an account for Person B's trust
$10,000 in an account for Person A's business
$10,000 in an account for Person B's business
$5,000 using money from their tax refund
$10,000 in the name of each of their kids under 18
Last edited by jshcoyle December 15, 2021 at 06:08 PM.
Dec 16, 2021
1,042 Posts
Joined Jun 2012
Dec 16, 2021
orangejuice57
Dec 16, 2021
1,042 Posts
Any prediction on what the next cycle rates will be based on today's fed talk?
Dec 16, 2021
1,284 Posts
Joined Jun 2006
Dec 16, 2021
surtigujju
Dec 16, 2021
1,284 Posts
can we put money on parent's name and redeem it later?
Pro
Dec 16, 2021
821 Posts
Joined Apr 2018
Dec 16, 2021
Tedusmc2009
Pro
Dec 16, 2021
821 Posts
Stock up on leads. 9mm was dollar per round. Normally it was $200 per k
1
2
Dec 16, 2021
5,289 Posts
Joined Dec 2006
Dec 16, 2021
talkbackfreebie
Dec 16, 2021
5,289 Posts
Quote from practicalme :
you can print a gift certificate. https://www.treasurydirect.gov/in...icates.htm [treasurydirect.gov]
That will work ! Thank you so much !!!!
Dec 16, 2021
590 Posts
Joined Dec 2006
Dec 16, 2021
seasix
Dec 16, 2021
590 Posts
Quote from surtigujju :
can we put money on parent's name and redeem it later?
you need to transfer it to your parents so they can redeem it, YOU can't redeem it later.
But you can wait to transfer it, don't know what your thought process is with such an incomplete question.
Dec 16, 2021
440 Posts
Joined Dec 2007
Dec 16, 2021
Daan
Dec 16, 2021
440 Posts
To get the $5k in paper bonds upon filing 2021 taxes in April (and assuming you are getting a min $5k refund): do you need to pay the extra taxes by end of 2021 or you can pay them anytime before you file your tax return?

Can anyone clarify this? It has been asked a couple of times during the exchanges with no clear outcome...

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Dec 16, 2021
220 Posts
Joined Aug 2009
Dec 16, 2021
crepps
Dec 16, 2021
220 Posts
Is there a way to get a paper bond instead?
Dec 16, 2021
5,289 Posts
Joined Dec 2006
Dec 16, 2021
talkbackfreebie
Dec 16, 2021
5,289 Posts
Quote from crepps :
Is there a way to get a paper bond instead?
Is it possible to purchase a bond through your payroll office ?
Dec 16, 2021
1,183 Posts
Joined Mar 2005
Dec 16, 2021
acegolfer
Dec 16, 2021
1,183 Posts
Quote from Daan :
To get the $5k in paper bonds upon filing 2021 taxes in April (and assuming you are getting a min $5k refund): do you need to pay the extra taxes by end of 2021 or you can pay them anytime before you file your tax return?

Can anyone clarify this? It has been asked a couple of times during the exchanges with no clear outcome...
You can overpay in 2022 for 2021 tax. But must be accompanied by an extension. You can still file before 4/15.

Quote from crepps :
Is there a way to get a paper bond instead?
Not via treasurydirect

Quote from talkbackfreebie :
Is it possible to purchase a bond through your payroll office ?
No.
Dec 16, 2021
1,604 Posts
Joined Aug 2009
Dec 16, 2021
Boglehead
Dec 16, 2021
1,604 Posts
I've been buying I-bonds for over 15 years. I just stick part of cash allocation in there.
Dec 16, 2021
30 Posts
Joined Oct 2019
Dec 16, 2021
Rzn972
Dec 16, 2021
30 Posts
10k limit per year. Does that mean 1/1/2022 we can buy 10k more?
Dec 16, 2021
67 Posts
Joined Mar 2014
Dec 16, 2021
THNKTWZ
Dec 16, 2021
67 Posts
Quote from Rzn972 :
10k limit per year. Does that mean 1/1/2022 we can buy 10k more?
Yes, 10K per individual per calendar year.
Dec 16, 2021
440 Posts
Joined Dec 2007
Dec 16, 2021
Daan
Dec 16, 2021
440 Posts
Quote from acegolfer :
You can overpay in 2022 for 2021 tax. But must be accompanied by an extension. You can still file before 4/15.
Isn't an extension asking for a later filing, extending the normal filing period that ends 4/15??

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Dec 16, 2021
1,183 Posts
Joined Mar 2005
Dec 16, 2021
acegolfer
Dec 16, 2021
1,183 Posts
Quote from Daan :
Isn't an extension asking for a later filing, extending the normal filing period that ends 4/15??
https://thefinancebuff.com/overpa...-tips.html

IRS Direct Pay
If you don't pay quarterly estimated taxes, you can make a one-time payment through IRS Direct Pay. After a year is over, you can still pay toward the previous year's taxes with an automatic extension. When you say your payment is for an extension, the payment automatically files the extension. You don't need to fill out another form.

You get extra time with an extension but you don't have to use it. You can still file your tax return on time before April 15. Choose "Extension" as the reason for payment. Select "4868" in the "Apply Payment To" field, and choose the previous year for the tax period for payment.

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