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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 20, 2021
6,660 Posts
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Dec 20, 2021
practicalme
Dec 20, 2021
6,660 Posts
Quote from labboypro :
The inflation rate set each May and November applies for six months to all I bonds ever issued. Source [treasurydirect.gov]

NEWS: The initial interest rate on new Series I savings bonds is 7.12 percent. You can buy I bonds at that rate through April 2022. Source [treasurydirect.gov]
Right. I'm just saying that the bond you buy has different dates of rate changes depending on when you get it. You get a full six months of the rate you buy it at. You can buy it on April 30 (issue date April 1) and still get the 7.12 for six months

We set the inflation rate every six months (on the first business day of May and on the first business day of November), based on changes in the non-seasonally adjusted Consumer Price Index for all Urban Consumers (CPI-U) for all items, including food and energy.

However, the change is applied to your bond every six months from the bond's issue date. (The dates for these changes might not be May 1 and November 1.)
Dec 20, 2021
605 Posts
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Dec 20, 2021
teckel1927
Dec 20, 2021
605 Posts
Quote from tjax123 :
scared money dont make money. i'll see you in a million in 5 years time.
Shib 🚀
2
Dec 20, 2021
7,483 Posts
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Dec 20, 2021
DogAndPony
Dec 20, 2021
7,483 Posts
So I apparently did not put in the correct banking information for my son's account and I just got an email from the treasury alerting me that they were unable to receive the funds and I cannot simply go in and correct the banking information. I need to complete a form and mail it to them. WTF

Well forget that. It's not worth the hassle. I cannot believe this is the process though. What a joke.
Dec 20, 2021
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Dec 20, 2021
labboypro
Dec 20, 2021
3,805 Posts
......
Last edited by labboypro December 19, 2021 at 06:36 PM.
1
Dec 20, 2021
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Joined Sep 2008
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DogAndPony
Dec 20, 2021
7,483 Posts
Quote from labboypro :
No, which is why I posted verbatim and provided source. I've quoted it again above. As it says, ALL I-Series bond rates are set in May and November. If you buy today, in January, or April, your rate WILL be reset in May, not 6 months from your buy date.

This is further supported by the historical rate chart down the page that goes all the way back to 1998-- November rate, May rate, November rate, etc.
From the link you posted:

"What interest will I get if I buy an I bond now?
The composite rate for I bonds issued from November 2021 through April 2022 is 7.12 percent. This rate applies for the first six months you own the bond."

So it looks like you're wrong.
Dec 20, 2021
6,660 Posts
Joined Mar 2004
Dec 20, 2021
practicalme
Dec 20, 2021
6,660 Posts
Quote from labboypro :
No, which is why I posted verbatim and provided source. I've quoted it again above. As it says, ALL I-Series bond rates are set in May and November. If you buy today, in January, or April, your rate WILL be reset in May, not 6 months from your buy date.

This is further supported by the historical rate chart down the page that goes all the way back to 1998-- November rate, May rate, November rate, etc.
I also quoted verbatim from this page (https://www.treasurydirect.gov/in...dterms.htm).

This page may spell it out a bit more: https://www.treasurydirect.gov/in...htm#change Also attached chart.

It's sort of pain to figure it all out. I bought a bond in June this year for a 3.54 rate that changed over in December to the 7.12 rate.
Last edited by practicalme December 19, 2021 at 06:28 PM.
Dec 20, 2021
2,184 Posts
Joined Aug 2014
Dec 20, 2021
Cmurphy16
Dec 20, 2021
2,184 Posts
Quote from DogAndPony :
So I apparently did not put in the correct banking information for my son's account and I just got an email from the treasury alerting me that they were unable to receive the funds and I cannot simply go in and correct the banking information. I need to complete a form and mail it to them. WTF

Well forget that. It's not worth the hassle. I cannot believe this is the process though. What a joke.
There is a lot of security dealing with the treasury department. If you don't answer all the identity questions perfectly or you make a mistake on your bank info, they will take the extra steps to secure your info.

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Dec 20, 2021
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Dec 20, 2021
labboypro
Dec 20, 2021
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Quote from DogAndPony :
So it looks like you're wrong.
It's happened exactly once before in my lifetime. Will delete previous post.
1
Dec 20, 2021
6,660 Posts
Joined Mar 2004
Dec 20, 2021
practicalme
Dec 20, 2021
6,660 Posts
Quote from labboypro :
It's happened exactly once before in my lifetime. Will delete previous post.
With all of the misinformation in this thread, I can see why you thought it worked that way. I was only trying to clarify it.
Dec 20, 2021
3,805 Posts
Joined Aug 2005
Dec 20, 2021
labboypro
Dec 20, 2021
3,805 Posts
Quote from practicalme :
With all of the misinformation in this thread, I can see why you thought it worked that way. I was only trying to clarify it.
Unfortunately it was 'explained' to me by my fiduciary EEK!
Dec 20, 2021
234 Posts
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Dec 20, 2021
HilariousRecess268
Dec 20, 2021
234 Posts
Quote from teckel1927 :
Shib 🚀
A fool and their money...
Dec 20, 2021
198 Posts
Joined Jun 2020
Dec 20, 2021
FancyKite319
Dec 20, 2021
198 Posts
Quote from DogAndPony :
So I apparently did not put in the correct banking information for my son's account and I just got an email from the treasury alerting me that they were unable to receive the funds and I cannot simply go in and correct the banking information. I need to complete a form and mail it to them. WTF

Well forget that. It's not worth the hassle. I cannot believe this is the process though. What a joke.
If you have an account that has correct banking information, you can buy in that account with his name / SSN and then deliver the purchased bond to his account or keep in your account as a gift. I do this for my kids - they don't have their own account, rather it stays in my account as a gift I purchased. I deliver bonds purchased for my spouse to her account but I do all purchases from 1 account that has been setup and validated correctly.
QA
Dec 20, 2021
872 Posts
Joined Mar 2005
Dec 20, 2021
EZ_slickdealz
QA
Dec 20, 2021
872 Posts
Quote from practicalme :
With all of the misinformation in this thread, I can see why you thought it worked that way. I was only trying to clarify it
Agreed. Applause Like I stated several pages back, this thread is FULL of bad information mixed in with the good. Anyone looking at these should do their own research and verify any of the info they find here. Trying to correct the information in a forum like this is difficult because it often leads to arguing etc. HTH
Dec 20, 2021
7,483 Posts
Joined Sep 2008
Dec 20, 2021
DogAndPony
Dec 20, 2021
7,483 Posts
Quote from FancyKite319 :
If you have an account that has correct banking information, you can buy in that account with his name / SSN and then deliver the purchased bond to his account or keep in your account as a gift. I do this for my kids - they don't have their own account, rather it stays in my account as a gift I purchased. I deliver bonds purchased for my spouse to her account but I do all purchases from 1 account that has been setup and validated correctly.
Thank you. I did not know that was an option. I opened four separate accounts for myself, my wife and my two kids. Would have been easier if I could have kept it to one or two accounts.

I'll try to do this tomorrow. Thanks!

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Dec 20, 2021
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Dec 20, 2021
FancyKite319
Dec 20, 2021
198 Posts
Quote from kahoots :
I have the same question. Anyone else know?
You can setup 1 account and do all purchases in that account. The bonds you have purchased for others stay in your account as a gift and if you ever open an account for them, you can deliver the bonds to their account.

We purchase $40k of bonds from my account and then I keep the kids bonds in my account but deliver the bonds for my spouse to their account. All purchases are done from my account which has bank information tied to it. Just make sure when you buy bonds for your spouse / kids, you use only their information / SSN as the owner - you can make someone else the beneficiary but only one owner and not a joint owner.

We buy $40k of bonds using below:
$10k in Spouse 1 with Child 1 as beneficiary
$10k in Spouse 2 with Child 2 as beneficiary
$10k in Child 1 with Child 2 as beneficiary
$10k in Child 2 with Child 1 as beneficiary.

All of these are purchased in the Spouse 1's account and stay as a gift till you open accounts for others and deliver the gift you purchased for them to their account.

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