@mistercheap said in US Treasury Series I Savings Bonds Inflation Rate Earnings (May - October '22) 9.62% Interest:
@c3 said in US Treasury Series I Savings Bonds Inflation Rate Earnings (May - October '22) 9.62% Interest:
@yoregano said in US Treasury Series I Savings Bonds Inflation Rate Earnings (May - October '22) 9.62% Interest:
Glad I waited since the interest rate has increased.
I don’t think “glad” is the correct description. If you purchased in April, you would have 6 months of 7.x% and 6 months of 9.x%. Now, you don’t know what happens after 6 months of 9.x%.
Right, that’s correct. Say you bought the 7.x bond in late 2021, you’d earn six months from your month date (say 1/1/22) of 7+%, then on 7/1/22 it goes up to 9.x% To be honest I don’t see inflation coming down much anytime in the next year. Oil prices will be even higher this summer than recently with demand and likely Russian boycott from Europe, supply chain issues from China and elsewhere. Labor costs going up as people demand more money for wages to keep up w/inflation. It’s a bad spiral when it gets like this.
Consider that a money market acct is paying .5% right now. Anything above 4% in these bonds is pretty darn good not to mention the interest hit is deferred until you actually redeem them.
Even if you cash out at the end of the first 12 months and forego three months of interest, you’re still way ahead of a savings/mma or CD. I bought in Novenber 2021, and then again in April 2022, So did my wife. Took the money out of a savings account paying around 0.5%. Would be great if we could buy more than $10K per person per year. Not getting a tax refund, so can’t use that to buy a $5K paper iBond on top of the $10K bonds.
– Z –