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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2.2K Comments
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TD gives an annualized rate that you earn for 6 months so 9.62/2 is what you'd year from the month of purchase to 5 more months. Then month 7-12 you earn the next annual rate/2 of the 6.89%.
In your case since the purchase was credited to you before Nov 1st; so you'll get the 4.81% until March 2023. Then from April 2023 to October 2023 you will earn the 3.45%. This is the minimum you have to hold before you are allowed to sell (-3 month penalty before 5 years).
As for the Gift bond delivery my plan is to see how the rates are next year or what the predictions are. If i do not plan on making any new purchase then I can deliver the Gift to the said person. If the rates are still decent then I plan on buying but not gifting until the earned rates are crappy enough to hit the $10,000 a year limit. In other words I might not deliver it next year (as you can hold for the life of the bond) and if I do deliver it will be closer to the end of October.
Shahhere
I bought in Jan. 2022 and the fixed rate was 0% for the life of my bond.
Fixed rates:
"The fixed rate that we set each May and November applies to all bonds we issue in the 6 months following the date when we set the rate. The fixed rate applies for the life of the bond."
Their table:
Period when you bought your I bond in the left columns.
Composite rate for your 6 month earning period starting during November 2022 - April 2023 in the right column
From Through
Nov. 2022 Apr. 2023 6.89%
May 2022 Oct. 2022 6.48%
Nov. 2021 Apr. 2022 6.48%
May 2021 Oct. 2021 6.48%
Nov. 2020 Apr. 2021 6.48%
May 2020 Oct. 2020 6.48%
Source:
https://treasurydirect.
.
I bought in Jan. 2022 and the fixed rate was 0% for the life of my bond.
Fixed rates:
"The fixed rate that we set each May and November applies to all bonds we issue in the 6 months following the date when we set the rate. The fixed rate applies for the life of the bond."
Their table:
Period when you bought your I bond in the left columns.
Composite rate for your 6 month earning period starting during November 2022 - April 2023 in the right column
From Through
Nov. 2022 Apr. 2023 6.89%
May 2022 Oct. 2022 6.48%
Nov. 2021 Apr. 2022 6.48%
May 2021 Oct. 2021 6.48%
Nov. 2020 Apr. 2021 6.48%
May 2020 Oct. 2020 6.48%
Source:
https://treasurydirect.
.
Thanks labboypro, shahhere and sandbeach for putting in more details. I did go through the treasury direct Questionnaire and understood that if you purchase the bonds between Nov 1, 2022 and Apr 2023, Fixed rate of 0.4% applies for the life of the bond you hold and then the variable rate applies on top of that. If the variable rate increases to 10%(I doubt it will) for the following 6 months(May 1, 2023-Oct 31, 2023), this component already includes the 0.4% fixed rate. For other bonds purchased without fixed rate, the composite rate excludes the fixed rate. Please correct me if I got something wrong.
What was the FIXED rate on the DAY you purchased the bond? _____%
What is the then current VARIABLE rate for any given 6-month period? ____%
Add these number together to determine your earning rate for that 6-month period.
Fixed rate is... FIXED
Variable rate... wait for it... VARIES
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What was the FIXED rate on the DAY you purchased the bond? _____%
What is the then current VARIABLE rate for any given 6-month period? ____%
Add these number together to determine your earning rate for that 6-month period.
Fixed rate is... FIXED
Variable rate... wait for it... VARIES
I'd still take the 9.62 over the added fix rate but I plan on redeeming long before any break even point comes into play.
I still hold ibonds from two decades ago that have 3+ fixed rates (that I plan to hold for the full 30) . It's so weird to see that composite rate so high these past month.
A purchase has been scheduled in your TreasuryDirect account on mm/dd/2022. For more details, go to the History tab and click Security History. If you have a question about this activity, please call (844) 284-2676.
Thank you for using TreasuryDirect.
Yes, look at the purchase date of your iBond...if its before 11/1 then you got the rate.
Shahhere
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Shahhere
Thank you.
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