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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

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Medic311
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Quote from bonkman :
The "it's just like the 90s internet" crowd misses one very important difference. The retailers who were thinking that e-commerce was a fad and trying to stomp it out were just that -- retailers. They were bound by the "rules" of capitalism and didn't like the disruption, but they couldn't do anything about it besides increase their marketing budgets.

You're right that "old money" is trying to stop crypto from taking over. The difference is that "old money" is the governments of the developed world. That's a very different fight than Kmart not liking Amazon.

You don't want to be a part of a financial system where 30 people own 85% of the currency. Wealth inequality in America is already bad enough and has enormous day-to-day consequences, though they're often overlooked. Crypto is way, way worse. If Elon Musk sells all of his assets, the dollar will be fine. Rug pulls by whales are a regular occurrence and they destroy the coin. That's not how the economy should function if you want the economy to have any meaning.

^ this right here
1
Jan 26, 2022
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mikeyeastside
Jan 26, 2022
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Quote from Medic311 :
such a small yield
if about 5-7% risk free, the I bond is an intelligent choice for part of a risk diversified portfolio. About $46 trillion sits in US treasuries getting only about 0.6-2%.
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practicalme
Jan 26, 2022
6,654 Posts
Quote from yourr8 :
I checked this morning no interest paid yet, I put money in last December like 20th, is this normal?
It shows with the three month penalty so you while it's earned it just doesn't show it yet. In the 4th month, you'll see the previous month, and in the 12th month, you'll see the previous 9 months.
Last edited by practicalme January 26, 2022 at 10:58 AM.
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Medic311
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Quote from mikeyeastside :
if about 5-7% risk free, the I bond is an intelligent choice for part of a risk diversified portfolio. About $46 trillion sits in US treasuries getting only about 0.6-2%.
It's merely a better than nothing approach for those who would actually need such a small yield, as I said repeatedly. And if you are going into an inflationary environment with a better than nothing approach as your game plan, you will not fair well at all.

Getting I Bond drips is insignificant to the typical investor, and if the goal is legitimate wealth preservation against inflation I Bonds won't even come close
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Pga
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Quote from mikeyeastside :
Are you taking advice from reddit or twitter or something like that? The moves on Monday included the most awesome rally since 2008. We have been getting tremendous loosely coordinated herds of lemmings in the market buying ridiculous calls on the way up and that trend finally reversed down. The ridiculous puts I sold as planned on here were up 600% and they will be worthless by Friday. I bought so many stocks near noon on Monday as the S&P 500 approached my long term buy target of 4200, and most of those stocks returned 4-6% by the end of the day. My trades based primarily on valuations and quantitative discrepancies (both to the upside and downside) have consistently outperformed since the pandemic began. The recent downside moves such as what we saw near noon on Monday were not the actions of intelligent traders with valuation models and trading plans, rather more just like mammals or lemmings with smart phones and trading apps, struggling to keep up with their herd.
No I don't. And like I said all we need is time.
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Pga
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Quote from Vision33r :
That's by far the worst explanation, the person who explained it has no clue what crypto is just like back in the 90s people who said about the internet.

Crypto will have a huge transformation and disruption of the financial system in the future and the old money is trying to stop crypto from taking over.

Today most of us already have access to some type of digital currency but blockchain will remove the dependence on current financial systems. And that's what worries banks.
Lol crypto's aren't even used as currency …..
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Pga
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Quote from mikeyeastside :
See that?
See what?

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Pga
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Quote from Medic311 :
You seem to have misread my post, coming to the conclusion that I don't have $10,000 in savings because if I did then I would be buying an I Bond. If chasing such a small yield is important to preserve your wealth from inflation (regardless of how many family members you get on board or bond gifts you take out)....it means your net worth is small enough that you should be (or should have been) taking greater investment risk. And if you are in the "should have been" column it means you are likely fixed income and will get absolutely destroyed going into an inflationary environment. Which as I said before in my post, if you need that $10,000 in savings to survive then the I Bond is your only other choice at this point.

For those not in the "should have been" and are in the "should be" column, going into an inflationary environment with appreciating assets leveraged with low rate fixed long term debt is what's needed, not giving it to the Treasury
Lol you do realize that I bonds have adjustable rate base on inflation? So whatever cash reserve you put in there is inflation protected, guaranteed…..

You don't seem to be the type that has balance investment portfolio and still ends up with bundles of cash left.
Last edited by Pga January 26, 2022 at 11:07 AM.
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mikeyeastside
Jan 26, 2022
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Quote from Medic311 :
you will not fair well at al
You don't know what will happen and classifying everyone into 2 columns is rather close minded
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coli
Jan 26, 2022
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Quote from 4thedeal :
Which card, and what are the gov fees for paying with a credit card?
BoA, 2.625% cashback, fee was 1.96%
Jan 26, 2022
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mikeyeastside
Jan 26, 2022
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Quote from Pga :
See what?
The market rallied further, so is that a stronger signal giving information about valuation?
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Medic311
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Quote from Pga :
Lol you do realize that I bonds have adjustable rate base on inflation? So whatever cash reserve you put in there is inflation protected, guaranteed…..

You don't seem to be the type that has balance investment portfolio and still ends up with bundles of cash left.

It doesn't even matter, the inflation factor is hilariously so far off base which I've repeatedly mentioned already. It's not even close, no where near close to what inflation truly is. If you can't grasp that, then there is no amount of discussion that can take place that will remove your blinders.

Playing around with $10,000 I-Bonds going into an inflationary environment thinking you're protected and preserving your wealth from inflation, is not good. Unless of course, you need that money to survive in which case it's your only option, your "better than nothing" option. Hence the "should have been" column.

"Cash" should be looked at only as a tool. Giving cash back to the Treasury and holding their debt, thinking it's all good b/c you get a little drip (taxed at your Federal income rate I might add, so they claw a chunk of it back anyways).... pegged to a inadequate inflation metric to boot, is a stupid use of that tool. Uunless as mentioned above, it's your better than nothing option.
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Pga
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Quote from mikeyeastside :
The market rallied further, so is that a stronger signal giving information about valuation?
Wait we are discussion medium term trends and you are trying to prove I'm incorrect based market moves 2 days after major sell off back to back sell off sessions?? You do realize that today we are still below Friday close and well below overall? hahah

EDIT: You might be eating crow by the time the bell is rung today, LOL
Last edited by Pga January 26, 2022 at 12:17 PM.
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Quote from Medic311 :
It doesn't even matter, the inflation factor is hilariously so far off base which I've repeatedly mentioned already. It's not even close, no where near close to what inflation truly is. If you can't grasp that, then there is no amount of discussion that can take place that will remove your blinders.

Playing around with $10,000 I-Bonds going into an inflationary environment thinking you're protected and preserving your wealth from inflation, is not good. Unless of course, you need that money to survive in which case it's your only option, your "better than nothing" option. Hence the "should have been" column.

"Cash" should be looked at only as a tool. Giving cash back to the Treasury and holding their debt, thinking it's all good b/c you get a little drip (taxed at your Federal income rate I might add, so they claw a chunk of it back anyways).... pegged to a inadequate inflation metric to boot, is a stupid use of that tool. Uunless as mentioned above, it's your better than nothing option.
So I gather you are one of those "official inflation is X% but real inflation is XXX%, I'm telling you" cognitive dissonance guys, eh? Regardless, your all risk investment strategy might work for you, but there isn't a single financial adviser that recommends your plan.
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