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.
Interesting. Thanks for posting.
"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."
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.
“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.
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.
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 ...
I just started following the House Stock Watcher, and will start trading next year. Should post greater returns than I bonds.
As usual, FReepers come thru and post advice on various investment vehicles to park your money and earn some cash greater than 0.01% interest offered by banks. I Bonds is only one possibility of many.