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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

3,499 Comments 1,454,758 Views
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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

Community Voting

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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 19, 2021
6,660 Posts
Joined Mar 2004
Dec 19, 2021
practicalme
Dec 19, 2021
6,660 Posts
Quote from tjax123 :
Not intended to make money? If that was the case, then this is the biggest waste of time on FP. And as someone pointed out, it's not even 7%, more like half that for the duration and it must be fully invested for 5 years or lose last 3 months. WHat a load of bull.

Any half minded investor will logically stick in index funds and forget about it.

P.S. That crypto thought you had there, well the same mindset everyone had when TSLA was 180 presplit and now here we are.
Everyone would love a crystal ball when it came to stocks like TSLA. I had a broker back in 2003 that told me that she was selling my AAPL position because it wasn't going anywhere. Hint, she's not my broker anymore.

Everyone should have some sort of safe, i.e. will not lose any principal, in their portfolio. When you're young, that percentage can be low, say 5-10% tops. Diversification is important for a lot of people and this is one avenue that can be used for the safe haven.

Obviously, if an investor is willing to be risky there are places for that too. High risk, high reward. But there are a lot of people who for whatever reason (older and near retirement or got burned in 2008) that are low risk, low reward.

Bottom line: some people will like this, some people will like crypto or other high risk ventures. It doesn't make either one stupid or idiotic or the many other things some have said. It's your money, use it as you want and let others use it as they want. This is a deal site full of people trying to save money, not people with financial backgrounds. Hopefully, people are doing their own research and not relying on the advice of strangers.
Dec 19, 2021
1,079 Posts
Joined Aug 2011
Dec 19, 2021
tjax123
Dec 19, 2021
1,079 Posts
Quote from practicalme :
Everyone would love a crystal ball when it came to stocks like TSLA. I had a broker back in 2003 that told me that she was selling my AAPL position because it wasn't going anywhere. Hint, she's not my broker anymore.

Everyone should have some sort of safe, i.e. will not lose any principal, in their portfolio. When you're young, that percentage can be low, say 5-10% tops. Diversification is important for a lot of people and this is one avenue that can be used for the safe haven.

Obviously, if an investor is willing to be risky there are places for that too. High risk, high reward. But there are a lot of people who for whatever reason (older and near retirement or got burned in 2008) that are low risk, low reward.

Bottom line: some people will like this, some people will like crypto or other high risk ventures. It doesn't make either one stupid or idiotic or the many other things some have said. It's your money, use it as you want and let others use it as they want. This is a deal site full of people trying to save money, not people with financial backgrounds. Hopefully, people are doing their own research and not relying on the advice of strangers.
no i get that. believe me im not downplaying anyone who is getting in on this. my problem is that this deal aint even that good. plus nowadays you get a few cc offers that gets much more cash back than a measly 3%, not to mention with a cap 10k. there are even banks that offers 500 sign in bonus with no much effort that are superior than this deal in every way.

im seeing this deal over and over on FP and moreso gets more attention day by day. Dont really get it. It's a subpar deal thats not even worth putting any time in.

i remember back in the day there was a deal that gets you a free top of the line laptop with this amount of votes and views like this deal is getting. how times are changed
Dec 19, 2021
6,660 Posts
Joined Mar 2004
Dec 19, 2021
practicalme
Dec 19, 2021
6,660 Posts
Quote from tjax123 :
no i get that. believe me im not downplaying anyone who is getting in on this. my problem is that this deal aint even that good. plus nowadays you get a few cc offers that gets much more cash back than a measly 3%, not to mention with a cap 10k. there are even banks that offers 500 sign in bonus with no much effort that are superior than this deal in every way.

im seeing this deal over and over on FP and moreso gets more attention day by day. Dont really get it. It's a subpar deal thats not even worth putting any time in.
I agree. I have maxed out credit card deals and bank bonuses myself. But I put half my emergency fund in this because right now it's just sitting in lower interest accounts. I live in a high state income tax state so that helps a bit more.

As for FP, that's another story. For a long time I felt the same way of all these amazon deals on FP that I didn't think were a deal at all, let alone a hot deal. It seems now that they're basing it on TU or something. But honestly, there are way worse deals on the FP than this Smilie
Dec 19, 2021
1,079 Posts
Joined Aug 2011
Dec 19, 2021
tjax123
Dec 19, 2021
1,079 Posts
Quote from bonkman :
Nope. At least, there are plenty of financial situations where this isn't true.
im talking about long term (e.g >5 years) and not your monthly performance like your comment suggests
Dec 19, 2021
3,805 Posts
Joined Aug 2005
Dec 19, 2021
labboypro
Dec 19, 2021
3,805 Posts
Quote from tjax123 :
parking cash in index funds is "high risk"laugh out loud

okay buddy
Uh, buddy... I was talking about crypto. Keep up.
Dec 19, 2021
1,079 Posts
Joined Aug 2011
Dec 19, 2021
tjax123
Dec 19, 2021
1,079 Posts
Quote from labboypro :
Uh, buddy... I was talking about crypto. Keep up.
scared money dont make money. i'll see you in a million in 5 years time.
1
Dec 19, 2021
37 Posts
Joined Nov 2017
Dec 19, 2021
pepe75
Dec 19, 2021
37 Posts
Can someone summarize the 87 pages before? Wow! I thought bonds were boring but i enjoyed the 1 hour of reading ;-)

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Dec 19, 2021
6,660 Posts
Joined Mar 2004
Dec 19, 2021
practicalme
Dec 19, 2021
6,660 Posts
Quote from pepe75 :
Can someone summarize the 87 pages before? Wow! I thought bonds were boring but i enjoyed the 1 hour of reading ;-)
Best to do your own research to see if they fit your portfolio:

https://www.forbes.com/advisor/in...e-i-bonds/
Dec 19, 2021
432 Posts
Joined Aug 2005
Dec 19, 2021
stoneagee
Dec 19, 2021
432 Posts
Not quite getting this. I get that the columns are seasonal adjusted while the total is unadjusted(5.4).
My calculation is .6+.8+.6+.9+.5+.3+.4=4.1/7*12=7.02 using the adjusted columns.
Why it comes out to 7.12?

QUOTE=acegolfer;152124724]FYI, the current 7.12% I-bond rate was decided by 9/2021 CPI-U release. https://www.bls.gov/news.release/...132021.htm

At that time, yoy inflation rate was 5.4%. Otoh, it increased to 6.8% in 11/2021 release. If this continues (not speculating), we may have more than 7.12% rate next May.[/QUOTE]
Dec 19, 2021
1,183 Posts
Joined Mar 2005
Dec 19, 2021
acegolfer
Dec 19, 2021
1,183 Posts
Quote from stoneagee :
Not quite getting this. I get that the columns are seasonal adjusted while the total is unadjusted(5.4).
My calculation is .6+.8+.6+.9+.5+.3+.4=4.1/7*12=7.02 using the adjusted columns.
Why it comes out to 7.12?

QUOTE=acegolfer;152124724]FYI, the current 7.12% I-bond rate was decided by 9/2021 CPI-U release. https://www.bls.gov/news.release/...132021.htm

At that time, yoy inflation rate was 5.4%. Otoh, it increased to 6.8% in 11/2021 release. If this continues (not speculating), we may have more than 7.12% rate next May.
[/QUOTE]

You are not getting the exact 7.12% figure because you are using rounded monthly rates. Instead, use https://www.bls.gov/regions/mid-a..._table.htm. Look up end of 3/2021 and 9/2021 to CPI-U numbers to calculate the 6-month % increase X 2. You will get exact 7.12%.
Dec 19, 2021
38,368 Posts
Joined Nov 2006
Dec 19, 2021
bonkman
Dec 19, 2021
38,368 Posts
Quote from tjax123 :
im talking about long term (e.g >5 years) and not your monthly performance like your comment suggests
Ok...except it's impossible to guess which crypto if any will be a long term success. And while market indices indeed have better returns over a long time, there are plenty of financial situations where people don't want the unpredictable nature of the market and the risk that exists. These bonds are like a CD -- no risk, but a reasonable return (compared to other no risk investments).
Dec 19, 2021
920 Posts
Joined Jan 2008
Dec 19, 2021
MikeyMarginal
Dec 19, 2021
920 Posts
Quote from tjax123 :
Buying SPY or any of the indexes is still a lot better than buying this crap for a measly 7%. Hell even buying crypto is better if you can take on larger risk.
Lot of stupid coming in strong these days. Seems largely due to financial illiteracy, poverty, and many folks of less advanced age and wisdom.
Dec 19, 2021
234 Posts
Joined Jan 2021
Dec 19, 2021
HilariousRecess268
Dec 19, 2021
234 Posts
Quote from tjax123 :
Buying SPY or any of the indexes is still a lot better than buying this crap for a measly 7%. Hell even buying crypto is better if you can take on larger risk.
7% is not measly at all. The last time you could buy a 12 month CD that high was over 20 years ago. This investment is not in the even in the same category as index funds and should not be compared to them. As for crypto, it is pointless discussing it when crypto is light years away in terms of risk.

I was thinking we were in an asset bubble before reading this thread, now I am even more convinced. All these comments about how this bond's rates is so low when you can make 25% in an index fund or 500% in crypto. Give me a break. Buy hey every generation of investors needs to learn their risk tolerance when they get clobbered in a market downturn. Will be nice to have some cash on hand so I can take advantage of your suffering.
Dec 19, 2021
2,736 Posts
Joined Jun 2008
Dec 19, 2021
KaatuPaadi
Dec 19, 2021
2,736 Posts
So how much you can invest ??. 10K per year per person ?

If I have kids 2 below 18, can I invest 10K each
So lets assume couple with 2 kids below 18. Can I put 40K in there ??
Can I do that with same online account or do we need account for each...

This website is so confusing..

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Dec 19, 2021
3 Posts
Joined Mar 2014
Dec 19, 2021
ScottS4270
Dec 19, 2021
3 Posts
Quote from Honest-IJM :
With the official CPI at 6.8%(actually much higher), you are losing value buying this government debt. The USD is on it's last legs if the Federal reserve keeps increasing the money supply. https://tradingeconomics.com/unit...-supply-m2
Diversify yourselves folks! Fiat always fails in the end.
Not in the US Smilie

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