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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 1,447,662 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

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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

3,499 Comments

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Dec 30, 2021
537 Posts
Joined May 2007
Dec 30, 2021
drivenZ
Dec 30, 2021
537 Posts
I'm in. Thanks everyone for the advice. Seems like it's a no brainer if you don't need the cash for a year. Even if I pull out at 1 year AND the rate goes down in April, it's still probably 4.00-5.00% risk free.

with the omicron surge looking to last into late January, it's only going to make supply chain issues and inflation worse in the near term. I doubt the April rate will change drastically.
Dec 30, 2021
537 Posts
Joined Dec 2012
Dec 30, 2021
scorpionguy
Dec 30, 2021
537 Posts
Just tried creating the treasury account for myself. Provided correct info and submitted the form. Received email having my treasury account number but mentioning that an account hold is placed and i need to "mail" the authorization form that will take ~15 days for approval after reciept Frown . Could it be because i provided my new Google voice number which i recall now atleast IRS definetely dont take so may be similar limitation with Treasury site as well ?

## Below error if i try to login using the account number created by TD:

The following error(s) have occurred:

We haven't received your TreasuryDirect Account Authorization form (FS 5444E) so a hold has been placed on your account. To remove the hold, print and mail us the completed form which can be found at http://www.treasurydirect.gov/pdf...ctauth.pdf.
Dec 30, 2021
20 Posts
Joined Nov 2011
Dec 30, 2021
OutsideTown
Dec 30, 2021
20 Posts
I just opened an account and didn't have to wait for any paperwork. My purchase was accepted and is listed as processing tomorrow. As others have commented, I made sure all my banking and registration information matched and I did include my license information.
Last edited by OutsideTown December 30, 2021 at 02:19 PM.
Dec 30, 2021
20 Posts
Joined Nov 2011
Dec 30, 2021
OutsideTown
Dec 30, 2021
20 Posts
Quote from scorpionguy :
Just tried creating the treasury account for myself. Provided correct info and submitted the form. Received email having my treasury account number but mentioning that an account hold is placed and i need to "mail" the authorization form that will take ~15 days for approval after reciept . Could it be because i provided my new Google voice number which i recall now atleast IRS definetely dont take so may be similar limitation with Treasury site as well ?

## Below error if i try to login using the account number created by TD:

The following error(s) have occurred:

We haven't received your TreasuryDirect Account Authorization form (FS 5444E) so a hold has been placed on your account. To remove the hold, print and mail us the completed form which can be found at http://www.treasurydirect.gov/pdf...ctauth.pdf [treasurydirect.gov].
The website said that certain browsers can be problematic. It said IE is optimal, but I used Edge. Did you use either of these?
Dec 30, 2021
5,284 Posts
Joined Dec 2006
Dec 30, 2021
talkbackfreebie
Dec 30, 2021
5,284 Posts
Quote from KaatuPaadi :
So they shutdown their systems and website on 31st??....
The Bureau of the Fiscal Service manages all federal payments and collections, and provides government-wide accounting and reporting services. You can contact them to buy bonds or to check on the maturity of bonds you own.The problem with the 31st of Dec is that the first of the month is a new year by the time your payment clears your bank.
Dec 30, 2021
1,183 Posts
Joined Mar 2005
Dec 30, 2021
acegolfer
Dec 30, 2021
1,183 Posts
Quote from scorpionguy :
Just tried creating the treasury account for myself. Provided correct info and submitted the form. Received email having my treasury account number but mentioning that an account hold is placed and i need to "mail" the authorization form that will take ~15 days for approval after reciept Frown . Could it be because i provided my new Google voice number which i recall now atleast IRS definetely dont take so may be similar limitation with Treasury site as well ?

## Below error if i try to login using the account number created by TD:

The following error(s) have occurred:

We haven't received your TreasuryDirect Account Authorization form (FS 5444E) so a hold has been placed on your account. To remove the hold, print and mail us the completed form which can be found at http://www.treasurydirect.gov/pdf...ctauth.pdf.
We both used GV# to create the TD account. No issues.
Dec 30, 2021
537 Posts
Joined Dec 2012
Dec 30, 2021
scorpionguy
Dec 30, 2021
537 Posts
I used chrome and i doubt that should be an issue since someone should have quoted it by now ..I did not get any page refreshe error etc what typically problematic might mean by TD.
Quote from OutsideTown :
The website said that certain browsers can be problematic. It said IE is optimal, but I used Edge. Did you use either of these?

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Dec 30, 2021
537 Posts
Joined Dec 2012
Dec 30, 2021
scorpionguy
Dec 30, 2021
537 Posts
Thanks for confirming. So not sure but based on one other victim's quote earlier that providing the optional driver license info could cause some issue.
Quote from acegolfer :
We both used GV# to create the TD account. No issues.
Dec 30, 2021
1,512 Posts
Joined Jan 2011
Dec 30, 2021
bugelrex
Dec 30, 2021
1,512 Posts
Quote from acegolfer :
That's correct. You can look up what the fixed rates are for old i-bonds at https://www.treasurydirect.gov/in...s.htm#past

The last time the fixed rate was non-zero was 11/1/2019 at 0.20%.
Technically what happened when it went negative in may 2009???

May 1, 2009 -2.78%
Dec 30, 2021
1,183 Posts
Joined Mar 2005
Dec 30, 2021
acegolfer
Dec 30, 2021
1,183 Posts
Quote from bugelrex :
Technically what happened when it went negative in may 2009???

May 1, 2009 -2.78%
That's the inflation rate, while we were talking about fixed rate.

To answer your question, even if the inflation rate becomes negative, the i-bond rate will be non-negative. IOW, I-bonds never lose nominal value just like a savings account.
Dec 31, 2021
1,473 Posts
Joined Sep 2011
Dec 31, 2021
sdeal_77
Dec 31, 2021
1,473 Posts
Quote from KaatuPaadi :
So they shutdown their systems and website on 31st??....
My wife's hold got released today and I immediately placed an order for the I-bond. It is scheduled for tomorrow which means this looks automated. Going by what happened on my account where request was placed on 12/14 for debit on 12/15, the security got issued the same day and effective 12/01. So hoping that the same occurs for my wife's as well given that the system automatically set it for debit tomorrow and I get the security issued tomorrow, I should be good

If you go to History -> Security History it should give the trail on when the system issues the bond and its effective date tells you if this is applicable for this year or next. Will see
Last edited by sdeal_77 December 30, 2021 at 04:05 PM.
Dec 31, 2021
1,473 Posts
Joined Sep 2011
Dec 31, 2021
sdeal_77
Dec 31, 2021
1,473 Posts
Quote from OutsideTown :
The website said that certain browsers can be problematic. It said IE is optimal, but I used Edge. Did you use either of these?
Shouldn't matter. I used Chrome for both of us. mine went through instantly while my wife's didn't. Only issue is that the bank account was mine in both scenarios.
Dec 31, 2021
271 Posts
Joined Jan 2006
Dec 31, 2021
flyboyz
Dec 31, 2021
271 Posts
So can I buy 10k today Dec 30. And the. Another 10k February 2022 ? When can I withdraw the 20k. Make 7% ?
1
Dec 31, 2021
3,805 Posts
Joined Aug 2005
Dec 31, 2021
labboypro
Dec 31, 2021
3,805 Posts
Quote from flyboyz :
So can I buy 10k today Dec 30. And the. Another 10k February 2022 ? When can I withdraw the 20k. Make 7% ?
This has all been discussed already.

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Dec 31, 2021
1,183 Posts
Joined Mar 2005
Dec 31, 2021
acegolfer
Dec 31, 2021
1,183 Posts
Quote from flyboyz :
So can I buy 10k today Dec 30. And the. Another 10k February 2022 ? When can I withdraw the 20k. Make 7% ?
Yes, you can purchase $10k per calendar year.

You can redeem after 12 months so it will be 2/2023 in your example. But you won't be making 7% because we don't know the 2nd 6-month rate. 7.12% APR only applies to the 1st 6 months.
Dec 31, 2021
1,512 Posts
Joined Jan 2011
Dec 31, 2021
bugelrex
Dec 31, 2021
1,512 Posts
Quote from flyboyz :
So can I buy 10k today Dec 30. And the. Another 10k February 2022 ? When can I withdraw the 20k. Make 7% ?

After 1 year, you can withdraw and take 3 month penalty.
You will only make 7% if the new rate next year is also around 7% (who knows, but probably unlikely that high). So annualized will be between 3.5% and 7% minus the penalty

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