I series bonds

[CAJUNLAWYER]

If you buy an I series bond up to 10k per person before the end of October they are paying 9.62% Beats the hell out of CD's and for now the market. Can buy up to 10k for each SSN

 

[DWalt]

True, but:
They mist be held for at least one year, and,
If cashed out within 5 years, one quarter of interest is forfeited.

Look at the Treasury I-series website.

It is possible that the next I bond cycle beginning 1 November may have a higher rate.

Keep in mind that is possible that interest rates on other government and corporate bonds and even CDs could exceed 9.62% within the next few years. Right now I am leery of investing in any T-securities with maturities over six months. And right, now you can buy them at a little over 4% yield. I well remember what happened in the 1980s.

 

[tominboise]

True, but:
They mist be held for at least one year, and,
If cashed out within 5 years, one quarter of interest is forfeited.

Look at the Treasury I-series website.

It is possible that the next I bond cycle beginning 1 November may have a higher rate.

Keep in mind that is possible that interest rates on other government and corporate bonds and even CDs could exceed 9.62% within the next few years. Right now I am leery of investing in any T-securities with maturities over six months. And right, now you can buy them at a little over 4% yield. I well remember what happened in the 1980s.

By one quarter of interest, I presume you mean 3 months of interest, not 1/4 of the 5 year period.

 

[Alpo]

Those I-bonds are confusing.


I have some I bought back in 03. I just went and looked them up. The current interest rate on them is 10.77%.


Now WHY would bonds I bought 19 years ago be making 10.77, while bonds I buy this morning would only pay 9.62? I realize that the interest rate on these things changes, but it just seems like an I-bond should pay the same amount, whether I bought it 29 years ago or yesterday.

 

[THE PILGRIM]

If you have money looking for a home,
Not happy with Most Bond Interest,
Stocks tanking, just looked at mine, Down Today.
Just get online to the kind of confusing Treasury Direct site and open an account.
They'll take the $10,000 directly from your Bank (Credit Union).

 

[CAJUNLAWYER]

treasurydirect.com is the web site.
In financial matters what works for one may not work for another-everyone's situation is different.

 

[kaaskop49]

As in all investing, make sure you know what you're doing. Don't just be seduced by an attractive number.

Kaaskop49
Shield #5103

 

[Bullet Bob]

Hey Caj, can you loan me 10k?

 

[THE PILGRIM]

Right now, with Inflation running at 10+%, your money is losing massive buying power.
So most anything you do feels like bailing the Titanic with a coffee cup.
My strategy is to offset the Inflation as much as I can it Safely do.
Like, lately the Bonds I like are the US Gov AGENCY BONDS.
FHA, FANNIEMAE, Fed HOME LOAN BANKS, ETC.
I buy mostly short term and buy Individual Bonds!
It's not a good time to buy Bond Funds!

 

[nodpete]

Besides the 10K for each individual SS number, it you have a trust with the SS numbers included, you can get another 10K in I-bonds. Right now they are a great deal. And yes, he meant 3 months interest.

 

[WR Moore]

I recall back in Peanut Carter's presidency, CDs hit 18+%. Couldn't convince my father to invest

 

[CAJUNLAWYER]

I recall back in Peanut Carter's presidency, CDs hit 18+%. Couldn't convince my father to invest

That's kinda what I am hoping for-get a big spike in interest-load up and wait for the collapse.

 

[Countrycuz]

I recall back in Peanut Carter's presidency, CDs hit 18+%. Couldn't convince my father to invest

So far I haven't noticed CD interest rates going up much . I've been waiting.

 

[Kevin J.]

True, but:
They mist be held for at least one year, and,
If cashed out within 5 years, one quarter of interest is forfeited.

Look at the Treasury I-series website.

It is possible that the next I bond cycle beginning 1 November may have a higher rate.

Keep in mind that is possible that interest rates on other government and corporate bonds and even CDs could exceed 9.62% within the next few years. Right now I am leery of investing in any T-securities with maturities over six months. And right, now you can buy them at a little over 4% yield. I well remember what happened in the 1980s.

Invested $20K ($10K for each for my wife and I) at 9.62% back in August so I am maxed out for 2022. I will be investing another $20K in January. If as you say there are other secure investments that exceed 9.62 % by a significant amount in six month to a year I will take the three months interest hit and move funds.

 

[nodpete]

My last CD at Ally Bank got 3.05%. They are one of the first banks to raise rates as the Feds do it.

 

[WR Moore]

So far I haven't noticed CD interest rates going up much . I've been waiting.

For awhile I was loaning money direct to the Fed through short term notes. Higher interest rate than the banks and could pull out much sooner. Then interest dropped to virtually nothing. After the Fed went to digital only transactions I have no interest in doing business with them again. A piece of paper might not be worth much, but it eliminates the "Data, what data?" response to where your money is.

 

[TX-Dennis]

I have some I bonds. Be aware that the interest adjusts every 6 months. It could go up or down. In the near term it will be going up, but it could go down in the future. If you decide to invest in them keep a close watch on the current rate to see when to get out.

 

[DWalt]

Right now is not an opportune time to invest in any long maturity debt obligations. Or even preferred stocks. Maybe later, after interest rates show indications of peaking. I wish I knew when that will be.

 

[slickracer]

The only downside is the horrid Treasury Direct website, it's literally like stepping back to the year 2000.

 

[wnwitzell]

Setting up the account is a real test. At least for this computer challenged old geezer….