*PSA* I Bond Rate deadline tonight 4/27/23 at midnight.
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If you are interested in getting the current I Bond rate for the next 6 months, you need to make your purchase today.
Rate Change Deadline: To receive the current 6.89% rate for I Bonds in TreasuryDirect, you must complete your purchase by 11:59 p.m. Eastern Time on Thursday, April 27. Learn More.
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Here’s my thoughts: you’ll get 6.89 for 6 months, then down to 3.4% (around that) the next six months which is lower than CD’s, Treasuries and Money Market accounts presently (all in the 4-5%) range. over 12 months that averages out to 5.2% on I BONDS and your money is tied up for 5 years. Now if inflation starts creeping up again later in the year the rate for the 3rd 6 months could go up, but if it stays the same or goes down you may be losing money vs other options.
Plus if you decide to break the bond early there’s a 3 months interest penalty, further reducing your annual yield. So do your homework, these were a no-brainer at then end of 2021, perhaps not so much now.
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@mistercheap said in *PSA* I Bond Rate deadline tonight 4/27/23 at midnight.:
Treasuries and Money Market accounts presently (all in the 4-5%) range. over 12 months that averages out to 5.2% on I BONDS and your money is tied up for 5 years
What do you mean 5 years? The bond is for 30 years but you can sell after 1 year and lose 3 months of interest. If the rates are going to go down, I think it’s a safe bet that the bank rates are going down as well.
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2 Replies
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@dangeruss said in *PSA* I Bond Rate deadline tonight 4/27/23 at midnight.:
@mistercheap said in *PSA* I Bond Rate deadline tonight 4/27/23 at midnight.:
Treasuries and Money Market accounts presently (all in the 4-5%) range. over 12 months that averages out to 5.2% on I BONDS and your money is tied up for 5 years
What do you mean 5 years? The bond is for 30 years but you can sell after 1 year and lose 3 months of interest. If the rates are going to go down, I think it’s a safe bet that the bank rates are going down as well.
I think he means after 5 years you can redeem your bond and not have any interest penalty for early withdrawal.
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@dangeruss said in *PSA* I Bond Rate deadline tonight 4/27/23 at midnight.:
@mistercheap said in *PSA* I Bond Rate deadline tonight 4/27/23 at midnight.:
Treasuries and Money Market accounts presently (all in the 4-5%) range. over 12 months that averages out to 5.2% on I BONDS and your money is tied up for 5 years
What do you mean 5 years? The bond is for 30 years but you can sell after 1 year and lose 3 months of interest. If the rates are going to go down, I think it’s a safe bet that the bank rates are going down as well.
You can cash it in with no penalty after 5 years. that’s what I meant. Re: Interest rates, there’s a lot more than inflation at play right now, the banking crisis, which still may not be over will keep rates high as there’s less capital available to lend. Also, it is forecast that we may be on the horizon of another financial crisis with commercial real estate.
https://www.newsweek.com/crash-worse-2008-crisis-predicted-commercial-real-estate-1792758
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@mistercheap said in *PSA* I Bond Rate deadline tonight 4/27/23 at midnight.:
@dangeruss said in *PSA* I Bond Rate deadline tonight 4/27/23 at midnight.:
@mistercheap said in *PSA* I Bond Rate deadline tonight 4/27/23 at midnight.:
Treasuries and Money Market accounts presently (all in the 4-5%) range. over 12 months that averages out to 5.2% on I BONDS and your money is tied up for 5 years
What do you mean 5 years? The bond is for 30 years but you can sell after 1 year and lose 3 months of interest. If the rates are going to go down, I think it’s a safe bet that the bank rates are going down as well.
You can cash it in with no penalty after 5 years. that’s what I meant. Re: Interest rates, there’s a lot more than inflation at play right now, the banking crisis, which still may not be over will keep rates high as there’s less capital available to lend. Also, it is forecast that we may be on the horizon of another financial crisis with commercial real estate.
https://www.newsweek.com/crash-worse-2008-crisis-predicted-commercial-real-estate-1792758
Maybe they will convert to residential. Or maybe companies will create offices worth commuting for. Our company redid one of the floors and its more fancy now, lounges and stuff and a coffee bar, but you’ve gotta pay for the coffee. The regular kitchens have those packets of coffee which produce something just barely drinkable. They need to up their game and start having perks that start ups used to have - espresso machines, cold brew and kombucha on tap, maybe even beer, catered lunches, then maybe people would actually want to be in the office instead of being forced to for the sake of the leases and local economy.