I Bonds rates next month

    Posted by fundamentalvalues on 13th of Apr 2022 at 08:43 am

    I Bonds rates next month will likely be in the 9 percent range given recent inflation. An attractive guaranteed rate for any cash not being used for at least a year. Certainly better than a savings account or other options. Any funds pulled out after a year that aren't in for five years, give up one quarters worth of interest. 

    One thing of note, one can only do $10,000 per person in a calendar year electronic purchase wise. And another $5,000 on top of that if you are using tax return funds. Consider your situation before purchase of course. I'l be buying more soon, already have some of the 7.12% ones. Interest compounds semi annually and the interest rate updates every six months: 

    Info and can purchase here: https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ibuy.htm

    I like to do what I can to have a plan for our household. Once I'm informed, I formulate a plan and execute on it accordingly. Watching endless videos and reading endless articles does nothing for me. This goes for any subject I have no control over. Back to enjoying my life. The question becomes where should my money be and why during a particular period of time. 

    Thanks for sharing.  Three questions: 1.

    Posted by RichieD on 13th of Apr 2022 at 08:57 am

    Thanks for sharing.  Three questions:

    1.  How is the interest rate derived at each 6 month adjustment?  What is the interest rate linked to?

    2. Based on what I read at Treasury Direct, I assume a new I Bond will be priced in May since it currently states you can buy at 7.12% through April 2022.  Would that imply a higher interest rate at the May adjustment since the inflation #'s keep rising?

    3. Is there any way to purchase an I Bond inside a retirement account?

    1. The interest has two

    Posted by fundamentalvalues on 13th of Apr 2022 at 09:05 am

    1. The interest has two components that make up that rate. Read the info at the link I shared. 

    2. I would say it implies a higher rate, possibly in the 9 range. will know when they post it next month. 

    3. No

    Here's a good article: https://www.forbes.com/sites/stevevernon/2021/11/29/3-ways-pre-retirees-and-retirees-can-use-us-series-i-savings-bonds/?sh=79622f737a7f

    *I'm not a financial advisor and nothing I post should ever be taken as personal investment advice. Do your own DD and formulate your own plan based on your personal situation. Just like Matt and Steve preach here all the time.  

    Good to know, thank you!

    Posted by cozz101 on 13th of Apr 2022 at 08:48 am

    Good to know, thank you!

    Thanks for sharing 

    Posted by steve on 13th of Apr 2022 at 08:47 am

    Thanks for sharing 

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