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.
----------
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
Join The Conversation
Share your experience with the Slickdeals community
Share information with the community. Please follow our Community Guidelines and be kind!
2.2K Comments
Sign up for a Slickdeals account to remove this ad.
For the nth time, H1b visa is not considered temporary visa; Temporary visa holders are not issued SSN numbers. H1b visa holders are not listed anywhere on IRS website you referred you.
And no you can't be exempt from this test if you are on J1 visa, that just means you can not count those days toward residency test.
There's an entire page about the H-1B residency and the substantial presence test which you must have missed:
https://www.irs.gov/individuals/t...tatus-h-1b
The whole point is that having an SSN is not sufficient to qualify as a resident alien for tax purposes, which you have to be to buy these bonds. Most foreign workers in the US have lived there long enough to qualify as resident aliens, but not all, so a blanket "if you have an SSN you can buy this" statement is wrong. You can still try even without qualifying, of course, but good luck with that.
Quibbling about the semantics of 'exempt individual' is a waste of time.
Buy now in May: first 6 months (May - October 2022) = 9.62%; second 6 months (November 2022 - April 2023) = TBD% released in November 2022; third 6 months (May 2023 - October 2023) = TBD% released in May 2023
Wait and buy in October: first 6 months (October 2022 - March 2023) = 9.62%; second 6 months (April 2023 - September 2023) = TBD% released in November 2022; third 6 months (October 2023 - May 2024) = TBD% released in May 2023
So you end up with $675, am I wrong?
So you end up with $675, am I wrong?
1. 9.62% rate is for 6 months not 12 months. We don't know the 2nd 6-month rate.
2. If you redeem before 5 yrs, there's 3-month penalty. So the return will be smaller.
Sign up for a Slickdeals account to remove this ad.
1. 9.62% rate is for 6 months not 12 months. We don't know the 2nd 6-month rate.
2. If you redeem before 5 yrs, there's 3-month penalty. So the return will be smaller.
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.
Sure it is. In fact as pointed out one of the ways discussed would never have failed when back-tested all the way to the great depression.
In contrast the US government has defaulted on the terms of their own bond repayments multiple times, including the 1930s, 1960s, and 1970s. (but in fairness they still paid- just not in the way the original terms promised...and that specific method of default is unlikely to happen here due to the nature of the repayment terms- so that'd put both at equal risk of "never failed")
But again this was already discussed in great detail if you search for it- no need to further trigger Keung and rehash it for a 5th time now.
LOL at the idea of "rich" people putting their cash into money-losing ibonds. Rich people put their money places it actually earns returns greater than inflation+tax cost so they get richer, not poorer.
The cap on i-bonds is because the government wants-- nay needs most $ to actually stay in circulation to keep the economy running.... they'd much rather you spend it, or put it in the market where it can do something useful.
The cap on these used to be $30,000. But they don't want regular folks locking tons of their cash up like this, so it was lowered 10 years ago to the current 10k.... (you would THINK it would adjust with inflation-but of course it doesn't as again they'd rather you put your $ where it moves)
Depends where you live, and what kinda mortgage you're talking.
In the cheaper parts of flyover country the ~100k/yr after taxes return you could get very easily on that 1 million without touching principle would easily let you retire even with a mortgage.
In NYC it'd insure you could afford a very nice warm coat and high end cardboard box to be homeless in.
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
Sign up for a Slickdeals account to remove this ad.
The rest are quite different. Here are several notables.
I-bonds have variable rate. TIPS has a fixed rate (but the par value changes so the coupon also changes over time).
I-bonds value never decreases. TIPS value can decrease, when yield increases.
I-bonds don't pay out interest. Instead, it gets added to your account and you will cash out interest when you redeem. TIPS pay coupons every 6 months.
In sum, TIPS is closer to a traditional bond, where i-bonds behave more like a bank savings account.
Join The Conversation
Share your experience with the Slickdeals community
Share information with the community. Please follow our Community Guidelines and be kind!