https://www.doctorofcre
Code:
https://www.doctorofcredit.com/us-treasury-bonds-rate-set-to-increase-to-7-12-rate-i-bonds/
Comparing Series EE and Series I Savings Bonds
https://www.treasurydir
Code:
https://www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds_eecomparison.htm
1. This 7.12% rate on I bond is for next six months only (April 2022).
2. If, in April inflation is higher than today, they will earn higher, if inflation is less they will earn less for next six months, so basically rate changes every six months based on inflation.
3. You can keep these for 30 years or withdraw earlier (see #4 below)
4. You need to wait for 1 year before you can withdraw
5. If you withdraw between 1 yr and 5 yr, you lose last 3 months of interest (see #2 above, so if based on inflation if interest it was paying was reduced, you lose reduced interest)
6. After 5 year, no penalty so you don't lose last 3 months of interest
7. No state taxes on distribution (as per my understanding)
8. If you used for certain causes (like education) and your AGI is below certain value, you don't pay Federal tax as well (as per my understanding)
9. Buy at the end of month (on the 30th of a 31-day month, or 29th of a 30-day month), interest starts accruing from the 1st of the same month.
10. Interest rate can go down to 0% but not lower. This happened in 2009 during deflation.
Purchasing for others - https://slickdeals.net/f/15497017-us-treasury-series-i-savings-bonds-inflation-rate-earnings-nov-21-april-22-7-12-interest-limit-10k-year-per-person?p=152307
FAQs Concerning the Change in the Annual Purchase Limit for Savings Bonds [treasurydirect.gov]
Buy I Bonds as a Gift: What Works and What Doesn't [thefinancebuff.com]
Historical bond rate chart:
https://www.treasurydir
Code:
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/IBondRateChart.pdf
May 2021 3.54%
Nov 2020 1.68%
May 2020 1.06%
Nov 2019 2.22%
May 2019 1.9%
Nov 2018 2.83%
One trick to max out these I bonds: Overpay your estimated taxes now, by at least $5000, and then you can apply your refund of up to $5000 to buy $5000 more of I bonds, so it brings your total per year up to $15,000. The $5000 will come as paper I bonds, but you can mail them to the Treasury and convert them into electronic bonds.
Track inflation and iBond here
Update Apr 2022 [wordpress.com]
About this offer:
How do I buy a Series I bond?
Must register or sign-in to your free TreasuryDirect.gov account and link a bank account.
Electronically: Online via TreasuryDirect (including through payroll direct deposit)
Paper: By mail when you file your federal tax return
Click here to view a Guided Tour
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%
On May 1, 2022, the rate is scheduled to update, and is expected to be over 9%. Source 1 [cnbc.com] Source 2 [tipswatch.com]
How to buy: After registering and logging in, click on "BuyDirect" on the top menu bar. Check the "Series I" radio button.
This post can be edited by most users to provide up-to-date information about developments of this thread based on user responses, and user findings. Feel free to add, change or remove information shown here as it becomes available. This includes new coupons, rebates, ideas, thread summary, and similar items.
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You can copy/paste password at treasurydirect.gov
Auto method:
1. setup a bookmarklet in Firefox or Chrome by creating a new bookmark and putting the following in the URL section and save:
Code:
javascript:Array.from(document.getElementsByTagName("input")).forEach((el)=>el.removeAttribute("readonly"))
Manual method:
1. Press F12 to show the raw HTML code
2. Click the Picker and click on the read-only password editbox
3. Delete the readonly stuff in code
4. The password box is no longer readonly to you. Now you can enter the password without using virtual keyboard or press the Auto fill button on your password manager and log in
Per @cinderblockfist -- Form 5444 on the Treasury site has been updated (Aug 2022) to allow notary signatures.
This is a good article that provides step-by-step instructions on how to buy Series I bonds from Treasury Direct. "Bonds' Record-High Rates Are Worth the Hassle: How to Purchase Savings Bonds Online":
https://www.cnet.com/personal-fin...ds-online/
Top Comments
Also, it is highly unlikely that inflation is going to go down to 0% anytime soon, so most of us will just leave the money in there for at least 5 years if not longer. Sure beats the 0.5% - 1% savings interest I was getting.
Buy today: 7.12% for next 6 mo + 9.6% for 6 mo after + (unknown)% for next 6 mon
Buy in May: 9.6% for 6 mo after + (unknown)% for next 6 mon + (unknown)% for next 6 mon
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This is theatre, throwing crumbs to the indentured servants. If this was a serious thing that helped the people, we'd be allowed to dump our entire retirement accounts and savings into these bonds. But nope. Meanwhile, the nation's wealth is being handed out like candy to every country in the world, borrowed from the people's grandchildren who aren't even alive yet. Sad!
Sorry for the rant. YMMV.
You're just losing money slower than if you'd left it in a bank account.
If you want to get ahead you need to put the $ someplace it earns more than inflation after taxes- which ain't this.
Strategies for doing that over both longer and shorter term timeframes at exceedingly low risk exist, but a few people get super mad anytime they're mentioned in any detail in the bond threads so I'll let folks explore the search function to find em.
Are people here maxing out their IRAs for them and spouse, kids tuition, 401k/403b $20.5k and covering their mo they expenses with 6-12mo emergency saved, and are like huh, I've got cash piling up here and don't need to spend it on projects around the house, etc., I should put it in I bonds for 12 months?
I would guess after doing those things then probably a household income upwards of $155k could accomplish this assuming no large existing assets exist.
I could see younger kids who recently sold a home at housing market highs and then moving in with parents have a ton of cash to park somewhere.
Anyways, just interesting.
Are people here maxing out their IRAs for them and spouse, kids tuition, 401k/403b $20.5k and covering their mo they expenses with 6-12mo emergency saved, and are like huh, I've got cash piling up here and don't need to spend it on projects around the house, etc., I should put it in I bonds for 12 months?
I would guess after doing those things then probably a household income upwards of $155k could accomplish this assuming no large existing assets exist.
I could see younger kids who recently sold a home at housing market highs and then moving in with parents have a ton of cash to park somewhere.
Anyways, just interesting.
1. This can be portions of your emergency fund. Maybe 50% or 25%
2. This can be a short term force saving like a CD. So you won't be able to impulse spending the money.
3. You can ladder. Buy a smaller amount each month.
4. I also look at this as part of my core bond portfolio long term. Compares to others bond fund, this is pretty attractive.
Buying 10k gifts for each of us pushes that to 2024.
Another round pushes it to 2025.
That's quite a bit of time to tie up the money if inflation is "fixed"
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This is theatre, throwing crumbs to the indentured servants. If this was a serious thing that helped the people, we'd be allowed to dump our entire retirement accounts and savings into these bonds. But nope. Meanwhile, the nation's wealth is being handed out like candy to every country in the world, borrowed from the people's grandchildren who aren't even alive yet. Sad!
Sorry for the rant. YMMV.
Have a limit of 100k, to allow people to actually take advantage of it.
why don't you just start a new thread and explain the idea?
Why you need to piggy back on the bond thread to get attention likes leeches
Have a limit of 100k, to allow people to actually take advantage of it.
Let remind ourself the median household income of USA is $67521 USD in 2020
You have more than 10K stash away you are considered rich
Let remind ourself the median household income of USA is $67521 USD in 2020
You have more than 10K stash away you are considered rich
Buying 10k gifts for each of us pushes that to 2024.
Another round pushes it to 2025.
That's quite a bit of time to tie up the money if inflation is "fixed"
Have a limit of 100k, to allow people to actually take advantage of it.
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