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US Treasury Series I Savings Bonds Inflation Rate Earnings (Nov '21 - April '22) Expired

7.12% Interest
(Limit $10K/Year Per Person)
+951 Deal Score
1,415,566 Views
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%

Original Post

Written by
Edited January 25, 2022 at 02:44 PM by
Due to the very high level of inflation the US government is paying un unprecedented 7.12% interest on its Security I bonds. There is a limit of $10,000 per year per person.

https://www.treasurydirect.gov/in...glance.htm

There are quite a few articles around which share why this could be a potentially low risk investment with a high yield.

https://www.usatoday.com/story/mo...?gnt-cfr=1

You would have to create your own account through the Treasury Direct website and then link a bank account. You can additionally invest another $5K in paper bonds during the time you file your tax returns.

Please do your own diligence and invest at your own risk.
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7.12% Interest

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Featured 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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Joined Aug 2005
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> bubble2 3,755 Posts
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labboypro
04-28-2023 at 11:14 AM.
04-28-2023 at 11:14 AM.
May 2023 rate set

4.3%, includes 0.9% fixed

https://www.treasurydirect.gov/sa...s/i-bonds/
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StefanoM3235
04-28-2023 at 12:20 PM.
04-28-2023 at 12:20 PM.
Quote from labboypro :
May 2023 rate set

4.3%, includes 0.9% fixed

https://www.treasurydirect.gov/sa...s/i-bonds/

if buying over the weekend we still lock in the previous rate for six months right?
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gja
04-28-2023 at 12:36 PM.
04-28-2023 at 12:36 PM.
Quote from StefanoM3235 :
if buying over the weekend we still lock in the previous rate for six months right?
No, yesterday was the last day.
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Joined Aug 2005
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labboypro
04-28-2023 at 03:19 PM.
04-28-2023 at 03:19 PM.
Quote from StefanoM3235 :
if buying over the weekend we still lock in the previous rate for six months right?
Nope. Uncle Sam works Monday-Friday.
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Joined Jan 2007
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raimar
04-29-2023 at 07:24 AM.
04-29-2023 at 07:24 AM.
How long does it take for the withdrawal to take place/process from Treasury Direct once you start a cashout request? I am planning on withdrawing funds to pay for college tuition in the summer and would like to wait until close to the tuition payment deadline at my school before withdrawing.
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Cmurphy16
04-30-2023 at 08:07 AM.
04-30-2023 at 08:07 AM.
Quote from raimar :
How long does it take for the withdrawal to take place/process from Treasury Direct once you start a cashout request? I am planning on withdrawing funds to pay for college tuition in the summer and would like to wait until close to the tuition payment deadline at my school before withdrawing.

I redeemed a few smaller bonds that were over 20 years old last month and it was a similar timeline to buying. Deposit was in my connected bank the next day (though I redeemed early in the morning the day before).
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Cmurphy16
04-30-2023 at 08:08 AM.
04-30-2023 at 08:08 AM.
Quote from StefanoM3235 :
if buying over the weekend we still lock in the previous rate for six months right?

The second to last business day of the month is the latest you can buy to receive that months issue date. I usually leave 3-4 biz days in case of a transfer issue.
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phonic
05-01-2023 at 06:16 PM.
05-01-2023 at 06:16 PM.
Quote from gja :
No, yesterday was the last day.
No, April 27th was the last day to buy them and have the purchase clear in time. Assuming your account doesn't get flagged.
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gja
05-03-2023 at 03:40 AM.
05-03-2023 at 03:40 AM.
Quote from gja :
No, yesterday was the last day.
Quote from phonic :
No, April 27th was the last day to buy them and have the purchase clear in time. Assuming your account doesn't get flagged.
I wrote that on the 28th.
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mrshinsa
05-22-2023 at 03:28 PM.
05-22-2023 at 03:28 PM.
So what's the general consensus on what will happen if the government defaults?
I'm not asking about the likelihood of default, but if and when they default.
I understand the likelihood is low and we'll have bigger things to worry about, but let's think of the possibility.
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calisoldier83
05-30-2023 at 03:37 PM.
05-30-2023 at 03:37 PM.
What's a good exit point? CDs, MMs, and savings are beating the bond rate. 3 mos interest penalty sucks and separate from normal banking/brokerage accounts is lame. There's no way I'm going to hold for 61 months.
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puddnhead
06-02-2023 at 12:04 PM.
06-02-2023 at 12:04 PM.
Quote from Cmurphy16 :
I redeemed a few smaller bonds that were over 20 years old last month and it was a similar timeline to buying. Deposit was in my connected bank the next day (though I redeemed early in the morning the day before).
Curious why you did that? Any reason other than personal need for cash? I have some I-bonds that are *just* over 20 years old, so I know that bonds of that epoch carry decent fixed rate components, I guess I'd be loath to discontinue keeping those around as my "emergency reserve" - even if the fixed rate offering in the future surpasses what those had, it would have to be by more than a bit for me to want to go back to a situation w/o having immediate liquidity and no interest credit penalties ...
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labboypro
06-02-2023 at 01:38 PM.
06-02-2023 at 01:38 PM.
Quote from calisoldier83 :
3 mos interest penalty sucks and separate from normal banking/brokerage accounts is lame.
You knew this going in and should have added that reality to your calculus.
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calisoldier83
06-04-2023 at 03:32 PM.
06-04-2023 at 03:32 PM.
Quote from labboypro :
You knew this going in and should have added that reality to your calculus.
I mean I should've known, but you live you learn. I'm just trying to figure out what the logical breakeven point is now to pull out money before the 61mo mark and put it into another high yield investment.
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occasional7
06-14-2023 at 04:34 AM.
06-14-2023 at 04:34 AM.
Trying to compute the 3 months of low (3.4% annual) rates before i sell..

I bought in Dec 2021. Based on this eyebonds link http://www.eyebonds.info/ibonds/1...21_12.html it appears that i should sell on Oct 1 or later,

Did i read that right?
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