tominboise
Member
The rate will readjust on November 1, and is supposed to go down to 6.4% for the next 6 months. It could be higher if they add a fixed component to it, but that is unlikely. Still beats 6 month CD rates by quite a bit.
I series bonds
- Thread starter CAJUNLAWYER
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THE PILGRIM
Member
Yes the Treasury Site is a little squirrelly.
But it's worth it if you want to get a high Interest Rate for a few years.
But it's worth it if you want to get a high Interest Rate for a few years.
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I just buy treasuries through my broker. Of course I can't get savings bonds through them. For me it's not worth the hassle. But they make sense for a lot of people.
I have no problem buying treasuries as long as you can hold them to maturity. You may not make as much as you could have but you won't lose principal. "Bond ladders" are making a comeback. Buy 6 month, 12 month, 18 month, and 24 month maturities and when each matures, buy a 24 month. You'll average up your interest rate as you work through it. Or go every three months. Your call.
Or use CD's. The brokered CD's my broker has are competitive with treasuries. Right now they are at 4.5% and treasuries are mostly a tad lower though I didn't look at new issues.
I stay away from bond funds for the most part. With a bond held to maturity you won't lose principal. Not so with bond funds. Since they trade, they take losses.
I have no problem buying treasuries as long as you can hold them to maturity. You may not make as much as you could have but you won't lose principal. "Bond ladders" are making a comeback. Buy 6 month, 12 month, 18 month, and 24 month maturities and when each matures, buy a 24 month. You'll average up your interest rate as you work through it. Or go every three months. Your call.
Or use CD's. The brokered CD's my broker has are competitive with treasuries. Right now they are at 4.5% and treasuries are mostly a tad lower though I didn't look at new issues.
I stay away from bond funds for the most part. With a bond held to maturity you won't lose principal. Not so with bond funds. Since they trade, they take losses.
DWalt
Member
I remember that back in the early 1980s you could buy brokered CDs paying over 15%. That wasn't as good as it sounds, as it was a period of rampant inflation and prices were going crazy. My fear is that we could well be returning to that time. Remember for fixed income debt instruments, their price moves inversely to the market interest rate. Long maturities can kill you in this environment.
wnwitzell
Member
My current ibonds are accruing 12% interest. 2002 issue date for paper bonds. I should have bought more. Oh well….
5spotter
Member
I've noticed a difference between CD rates quoted by a brokerage vs rates I see advertised from a quick search.
I have access to 12 month CD's now paying 4.1%. Nothing to write home about yet but it beats letting cash languish where it's losing 8% yearly.
Rates are inching up- rewarding good savers for the first time in about 15 years. I'm hesitant about a commitment longer than 3 or 6 months because rates could be higher soon.
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DWalt
Member
For debt instruments available for purchase and sale on the secondary market, it is important to make a "yield to maturity" determination. That means including the gain or loss on your initial purchase cost due to interest rate changes during the holding period. That is because a fixed interest instrument may sell at a price either greater than or below its value if held to maturity due to prevailing interest rates. I won't get into details, but if you are interested in long-term maturity corporate or government bonds investments, it is something that can't be ignored. The longer the maturity, the more important it becomes.
Regarding CD rates, at present the best one-year bank CDs are yielding only about 4%. To me, that doesn't seem particularly attractive. I would rather go into 6 month T-notes which are paying a little more and have a shorter maturity. I feel that in six months, T-bill rates will be substantially higher and you can get into those then.
Regarding CD rates, at present the best one-year bank CDs are yielding only about 4%. To me, that doesn't seem particularly attractive. I would rather go into 6 month T-notes which are paying a little more and have a shorter maturity. I feel that in six months, T-bill rates will be substantially higher and you can get into those then.
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LoboGunLeather
US Veteran
Go to treasurydirect.gov, I-bond purchases are electronic and only direct to the public (no brokers or banks). Open an account on treasurydirect, link to a bank account, enter your "buy" order, funds will be transferred from your linked account (usually next day).
Current rate is 9.62% on bonds purchased by October 28, 2022 and will be locked in for first 6 months. Purchases after October 28 will be at the new inflation-adjusted rate (currently estimated at 6.47 to 6.48%).
For those wishing to purchase additional treasury bonds over the $10K annual limit (per individual) you may want to look at 2-year Treasury Bonds, currently at fixed rate of 4.507%.
The government website is full of information and FAQs.
LoboGunLeather
US Veteran
I-bond rates include two factors, a fixed interest rate and the inflation-adjustment computed semi-annually based on the CPI-U. The fixed rate is now 0% (since about 2020), but has fluctuated since I-bonds were first announced in 1998, usually in the 1.5% to 3% range. The fixed rate is determined by the date of bond purchase and cannot go down during the life of the bond, but can be adjusted upward by the feds.
Around 2020 inflation was so low that there was little need to offer a fixed rate; everyone was looking for anything that would beat the rates on bank CDs and money market accounts.
Is that like saying the stripper really does not like me and just wants my dollar bills? I am so confused...
cmj8591
Member
Another thing about I's is that if you use them for college tuition the interest becomes tax free.
THE PILGRIM
Member
If the Stripper really likes you,
She will give you money.
No! You cannot ask how I know that!
She will give you money.
No! You cannot ask how I know that!
I will neither confirm nor deny this, but the only thing I ever got from a stripper was not money, and it needed antibiotics to make it go away.
cmj8591
Member
But of course you did. Everyone knows that when using a stripper you must wear rubber gloves or you will burn your skin.
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I bought two just a few days ago - one for me, one for the Mrs. Yes - there are catches and they are taxable, however even after taxes they are still yielding a higher interest rate than pretty much any other well rated investments are at the current time.
They are also optionally tax deferred so you don't pay any income tax until you sell them. All in all not a bad deal these days!
They are also optionally tax deferred so you don't pay any income tax until you sell them. All in all not a bad deal these days!
OLDSTER
Member
We bought I Bonds just yesterday for my wife. ( $10,000 maximum ). Supposed to produce a good yield. I've heard that before. 
THE PILGRIM
Member
Chief38 pretty well summed it up.
Right now I Bonds are hard to beat.
If you know of a better place to put $10,000 right now,
Let us know!
Right now I Bonds are hard to beat.
If you know of a better place to put $10,000 right now,
Let us know!
so you are saying if you use a rubber barrier between you and the stripper it won't burn? Who knew...
and boy is this a thread drift from I Bonds...
I want the name of the brokerage offering 4.5% CDs?????
ErnieDeBord
Member
i know NOTHING about stocks & bonds, If i where to invest 10000 right now, approx would i make anything, in say a year? regards "Big E"
