Posted on 12/16/2021 7:08:20 AM PST by sergeantdave
NEWS: The initial interest rate on new Series I savings bonds is 7.12 percent. You can buy I bonds at that rate through April 2022.
(Excerpt) Read more at treasurydirect.gov ...
What interest will I get if I buy an I bond now?
The composite rate for I bonds issued from November 2021 through April 2022 is 7.12 percent. This rate applies for the first six months you own the bond.
High points:
1. The treasury I bond will pay you 7.12%
2. Can buy up to $10,000 in I bonds per individual, annually.
3. This rate is good for six months.
4. You can buy an I Bond for as little as $25.
Quite simply, if you have cash sitting in a bank, drawing 0.01% interest, this is an opportunity to get a much better interest rate for your dollars.
The link explains I bonds, including where and how to buy these bonds.
mine that I bought years ago are paying over 9%
since the fixed rate was higher back then
$10,000 maximum is not worth the trouble.
That says where interest rates are headed.
$10,000 maximum is not worth the trouble.
Its not worth making significant changes to your portfolio...but a $10k ACH transfer is not exactly brain surgery.
7.1% ‘sounds’ good. But if that is what the Government is paying, they are the baseline for the rest of the world.
I imagine there will be better opportunities in the coming months.
Of course...the return will be chewed up by inflation.
Interesting. Thanks for posting.
“2.Can buy up to $10,000 in I bonds per individual, annually”
$10K ANNUALLY ?????
What if you have 10 or 20 years old I bonds ?
Is this rate only for newly purchased bonds ?
I consider this a cash play. If you have 10K sitting in a bank account, drawing 0.01% interest, this is a better deal.
"Quite simply, if you have cash sitting in a bank, drawing 0.01% interest, this is an opportunity to get a much better interest rate for your dollars."
Congratulations. I'm light green, with envy.
is the 10k limit per year, per person
can me and the mrs both do this from separate accounts right now. We file taxes jointly
Keep in mind that bond prices move opposite interest rates. If you think the Fed will be raising interest rates (and I do), bond prices can be expected to sink.
Personally, I find I can buy certain stocks with a higher dividend rate (e.g., TWO @ 11.47%) than bonds. Also, the price is pretty stable and my holdings have never failed to pay their dividend.
Just something to be aware of.
There are some pretty sound companies with dividend stocks paying a 6.5% dividend like clockwork.Full liquidity if you need to sell. A great rate if you park your money in their stock.
“is the 10k limit per year, per person”
That’s my understanding. So, you can buy $10,000 maximum per year, the spouse $10,000, the kids $10,000. As always, do your own investment research.
“This rate applies for the first six months you own the bond.”
But won’t you get severely penalized if you cash in at seven months. You must hold for years or you never realize this 7% return. Another fed racket.
> Is this rate only for newly purchased bonds ? <
The rate on any I bond is the sum of the base rate (fixed at time of purchase) plus the current “official” rate of inflation.
So I bonds bought at different times would have different rates today, due to what the base rate was when they were purchased.
What are the limits on I-Bonds ?
I believe at a certain year they stop paying. Is that always 30 years ?
I need that advice
Can you bane some?
TYIA
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