US Government Treasury Security I Bonds paying 7.12% Interest
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Due to the very high level of inflation the US government is paying un unprecedented 7.12% interest on its Security I bonds. There is a limit of $10,000 per year per person.
https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm
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@ctgolfer Have to hold the bonds for at least one year plus 3 months to get the full interest rate:
"I bonds earn interest for 30 years unless you cash them first. You can cash them after one year. But if you cash them before five years, you lose the previous three months of interest. (For example, if you cash an I bond after 18 months, you get the first 15 months of interest.) "
Rate adjusts twice a year, I believe. I also believe you can invest $10 every year.
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm
Full disclosure - I bought this investment last month.
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Actually you can invest up to $10,000 a year in series I bonds and not just $10. I bought $10,000 worth in early November and in January I am planning to get $10,000 more.
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@mrvietnam said in US Government Treasury Security I Bonds paying 7.12% Interest:
Actually you can invest up to $10,000 a year in series I bonds and not just $10. I bought $10,000 worth in early November and in January I am planning to get $10,000 more.
I hit “K” on my keyboard but didn’t check to make sure the “k” actually showed up… $10K
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@ctgolfer How do you buy the bonds? Only through treasurydirect? How old do you need to be to be able to buy the bonds?
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@dangeruss said in US Government Treasury Security I Bonds paying 7.12% Interest:
@ctgolfer How do you buy the bonds? Only through treasurydirect? How old do you need to be to be able to buy the bonds?
Only on the Treasury Direct site. Looks like you have to be at least 18 years old:
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/registeringibonds.htm#children
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@dangeruss said in US Government Treasury Security I Bonds paying 7.12% Interest:
@ctgolfer How do you buy the bonds? Only through treasurydirect? How old do you need to be to be able to buy the bonds?
This may not be the answer to what you were asking, but you can buy these as a gift for a minor and I believe it would count against their limit.
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ifaq.htm
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@hbg1 said in US Government Treasury Security I Bonds paying 7.12% Interest:
@dangeruss said in US Government Treasury Security I Bonds paying 7.12% Interest:
@ctgolfer How do you buy the bonds? Only through treasurydirect? How old do you need to be to be able to buy the bonds?
This may not be the answer to what you were asking, but you can buy these as a gift for a minor and I believe it would count against their limit.
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ifaq.htmIs there any tax liability? How would that work for a minor?
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@dangeruss said in US Government Treasury Security I Bonds paying 7.12% Interest:
@hbg1 said in US Government Treasury Security I Bonds paying 7.12% Interest:
@dangeruss said in US Government Treasury Security I Bonds paying 7.12% Interest:
@ctgolfer How do you buy the bonds? Only through treasurydirect? How old do you need to be to be able to buy the bonds?
This may not be the answer to what you were asking, but you can buy these as a gift for a minor and I believe it would count against their limit.
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ifaq.htmIs there any tax liability? How would that work for a minor?
Not trying to be mean, but there is a ton of info at the government site. Tax considerations:
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_itaxconsider.htm
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