Treasury I Bonds

[JohnnyO]

You can now purchase a treasury I bond up to $10,000 per person at a rate of 9.62%

Hope this helps some folks

[TampaJim]

Thanks.

Additionally, you can buy with a tax refund, if applicable.
An extra $5,000 via Form 8888. Paper bond issue.
Once you receive the paper bond, you can convert it.

Current rate is 9.62%, it changes 2X/year with inflation.

[Matt D]

You can also do a gift which gets you earning the interest rate on additional money. Would only do the gift thing though with someone you fully trust like a spouse. There’s a post on here about that from earlier this year also.

[NitroZ7]

The question is not what it yields now but what will it be yielding in 2023. If it is still at 9.62% then we are in deep trouble. My wife and I maxed our Bond purchases for 2020 and 2021. Too bad it is only $10,000.00 a piece.

[Matt D]

The question is not what it yields now but what will it be yielding in 2023. If it is still at 9.62% then we are in deep trouble. My wife and I maxed our Bond purchases for 2020 and 2021. Too bad it is only $10,000.00 a piece.

agree completely. But at least that money put in there will be earning a good yield. I hope nothing more then in 2023 I am cashing them out because the yield are too low.

[TampaJim]

I'm thinking those bonds will be with Uncle Sugar thru the penalty phase.

[apenland01]

I bought my first ever I bond a couple months ago and I believe it will be paying a high rate for the next year. I'm calling an October announcement of 8.5% or more. Supply chains are not recovering. Housing may cool and oil/gas may drop a bit, but it's not offsetting all the other stuff people want, but can't get...

[RyanJ]

Got wife an I in during May at the max.

[Bassmaster96]

How long until the bond matures?

[Bassin273Stratos]

How long until the bond matures?

Here’s some information regarding I bonds:

Should you buy an ibond?

The 9.62% interest rate certainly looks appealing but there is a little more to ibonds that you should consider before purchasing.

* The rate is for only six months. Granted, inflation will still be high in six months so chances are you'll receive another high interest rate for the following six months.

* The interest rate has two components to it. A variable rate and a fixed rate. The variable rate is linked to inflation and measured by the CPI-U (Consumer Price Index for Urban Consumers) which is why the ibond is paying 9.62%. The fixed rate is determined by the Treasury and it's currently at 0%. So as inflation comes down, so will the variable rate portion of your ibond every six months.

*Liquidity. You can't sell your ibond for the first year. If you sell it in the first five years, you'll lose 3 months of interest.

* This isn't a product that you'd want to put your emergency funds in due to the inability to get to your money within one year. I'd suggest it would fall into your five-year fixed income bucket.

To learn more you can go to Treasury Direct https://www.treasurydirect.gov/indiv...terms.htm#infl

[tdt91]

following

[Bassmaster96]

Here’s some information regarding I bonds:

Should you buy an ibond?

The 9.62% interest rate certainly looks appealing but there is a little more to ibonds that you should consider before purchasing.

* The rate is for only six months. Granted, inflation will still be high in six months so chances are you'll receive another high interest rate for the following six months.

* The interest rate has two components to it. A variable rate and a fixed rate. The variable rate is linked to inflation and measured by the CPI-U (Consumer Price Index for Urban Consumers) which is why the ibond is paying 9.62%. The fixed rate is determined by the Treasury and it's currently at 0%. So as inflation comes down, so will the variable rate portion of your ibond every six months.

*Liquidity. You can't sell your ibond for the first year. If you sell it in the first five years, you'll lose 3 months of interest.

* This isn't a product that you'd want to put your emergency funds in due to the inability to get to your money within one year. I'd suggest it would fall into your five-year fixed income bucket.

To learn more you can go to Treasury Direct https://www.treasurydirect.gov/indiv...terms.htm#infl

Good info there thanks

[JohnnyO]

I agree. You might not want to use the emergency fund to purchase the bond. My wife and I are retired and have a slush fund. I am guessing the return for the first year will not be matched with other options.

[tdt91]

How does one go about buying I Bonds? Just buy through your regular broker or some other way?

[JohnnyO]

You have to go through the US treasury

[tdt91]

Link please

[TampaJim]

https://www.treasurydirect.gov/indiv...nds_glance.htm

[digthemup]

The question is not what it yields now but what will it be yielding in 2023. If it is still at 9.62% then we are in deep trouble. My wife and I maxed our Bond purchases for 2020 and 2021. Too bad it is only $10,000.00 a piece.

Hey Nitro,
I believe that when we had this conversation back in March, you also pointed out that you can buy a 10K I Series as a 'gift' and just leave it in your account till you give it to the person at a later date when you may not be buying a bond for that yr. Please correct me if I am wrong since I do not wish to pass on bad intel.

[NitroZ7]

Hey Nitro,
I believe that when we had this conversation back in March, you also pointed out that you can buy a 10K I Series as a 'gift' and just leave it in your account till you give it to the person at a later date when you may not be buying a bond for that yr. Please correct me if I am wrong since I do not wish to pass on bad intel.

I didn't do it as a gift I just bought one for me and bought one for my wife in December and then we each bought another one in January. It was coming out of a joint account so it really wasn't a gift. I just did the buying for both of us with our money.

[digthemup]

I didn't do it as a gift I just bought one for me and bought one for my wife in December and then we each bought another one in January. It was coming out of a joint account so it really wasn't a gift. I just did the buying for both of us with our money.

Got it. I bought one 10K for me and one 10K as a gift, and did the same for my wife's account, so we have 40k earning nearly 10%. Plan on holding for 15 months before cash in getting 12 months of interest, unless I don't need cause equities are still bouncing around.