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 ...
I need that advice
Can you name some?
TYIA
From the treasury website:
“You can redeem the bond after 12 months. However, if you redeem the bond before it is five years old, you lose the last three months of interest.”
elitist
Yes, an I bond stops paying interest after 30 years. And I have an old one coming up soon, so I’d better make note of that. By the way, here’s a chart that shows what a particular I bond is paying, based on when it was bought. The chart is at the bottom.
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm#now
It says where inflation rates were in the past 6 months which is how the inflation adjustment is calculated. The base rate is still 0%. I have some with a base rate of 3% so I’ll be making over 10% for the next six months. Compare that to 0.4% in a “good” savings account.
To each his own, govt bonds are sensible for some folks.
I like to get my hands dirty, though not so much as to loan money to the govt ;)
...so I flip real estate. It’s been interesting lately, and brings out my repressed inner cosmetic surgeon.
So at this juncture if I have some I-bonds that are like 20 years since issue, might I be better holding them than cashing them in today ?
Is there a web tool to see what is happening to their value month to month right now ?
I think it depends on what you plan to do with money you get from a cashed-in I bond. I see my I bond as a kind of savings account. No bank can match their rate, so I’m holding tight for the full 30 years.
But I suppose someone here can give you a stock that pays a good dividend, and might also appreciate in share price. That might be the better deal. Who knows?
“Of course...the return will be chewed up by inflation.”
Better to lose 3% to inflation than 10% though.
I know the Fed has promised 3 rate hikes of .25 each in 2022, but I can’t imagine the Board resisting democrat complaints of meddling in the market during an election year.
Why do the tables I see at the links only go back to 1998 ?
That’s not 30 years ago ?
Did the I-bond not exist in 1997 ? or earlier ?
See your mail.
“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.”
Definitely. A variant on that strategy I use is to invest in a mutual fund of a basket of companies that pay high dividends. Usually not as high a return as cherry picking high dividend stocks but less risk.
> Why do the tables I see at the links only go back to 1998 ? <
The first I bond was issued in 1998. So if you have one dated before 1998, look closer. It might be a EE bond.
I hope it’s not a bond issued by Venezuela! (just kidding)
I’ve moved my cash into stablecoins. 10.1% interest, no limit and instant conversion to USD if I need it. And, I get satisfaction knowing my money isn’t part of the corrupt financial system.
And then there are more risky private equity groups.
That sounds good on the surface, but how risky are stablecoins? The higher the return, the higher the risk.
Awesome - thanks !
“Can buy up to $10,000 in I bonds per individual, annually. “
great for those with limited savings and large families and willingness and ability to tie up their limited savings for a lengthy period of time, but hardly worth the effort for very small families with substantial liquid net worth ...
basically, just another redistribution scheme, because if this was a serious attempt by the Feds to borrow money, the limits would be MUCH higher ...
besides, these bonds doesn’t actually pay out interest, but simply adds it to the original principal every six months, and the only way to obtain the interest is to cash out of the bond entirely, and you can’t cash out for at least a year, and if you don’t hold the bond until it matures in five years, you lose three months of interest ...
Dividend stock EARN is paying more than 11%.
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