OT: Grab that Cash with Both hands and make a Stash. Series I Savings Bonds paying 7.12%,,( 9.6% May 1?)

gr82baspartan

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Nov 16, 2003
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" The initial interest rate on Series I Savings Bonds is 7.12%. You can buy I Bonds at that rate thru April '22"

www.treasurydirect.gov

Obvious that they're nothing like the overall market performance over the last few years.
Yet, decided to partake for a bit of my "Safe " money.

Various rules and regulations attached to their purchase. Early redemption penalty.
Homework Time!

Looks like rate changes every six months, 10K $ limit per person per year.
Plus side: no state tax on interest

,,,cheers
 
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fairfaxlion2

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Oct 12, 2014
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The return on those adjusts every 6 months. It's not like you can lock in 7 percent for any foreseeable amount time

But it's also obvious that the treasury practically doesn't want anybody to know about the I-bond. You never hear anything about it, and it has the annual limits.
 
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northwoods

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Jun 25, 2001
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I maxed them out in the 90’s and forgot about them till inflation kicked . Got 20 k with the wife in December and 20 k in January . Nice pick up.

We did the same in December and again last week. I have several Series I Savings Bonds from the late 1990's (when you could buy as many as you wanted) that have compounded annually at about 6% and are now worth about $28,000 each. The problem is that $18,000 of that comes out Federally taxed as ordinary income.
 

1995PSUgrad

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Nov 16, 2019
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I was given a few savings bonds for my son when he was born. He is about to turn 17. I have no idea what to do with them. When can he turn them in? How does he turn them in? Does he have to claim everything as income?
 

86Engineer

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Jul 25, 2015
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I was given a few savings bonds for my son when he was born. He is about to turn 17. I have no idea what to do with them. When can he turn them in? How does he turn them in? Does he have to claim everything as income?

Local banks should cash them....try yours first, because some only do it for their customers. At the end of the year, you'll get a Form 1099-INT: Interest Income to claim on your taxes.

My $50 bond matured after 30 years and yielded $128.69....$78.68 in interest in 30 years.
 

northwoods

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I'm not sure, but I think only the last years interest earned is ordinary, and the remainder is capital gains if the bond is held for over one year. My first ones are about 25-27 years old so I have not redeemed any yet.
You would be wrong about that --- all interest on Series I Savings Bonds is taxed as ordinary income. I suggest that you check further before you make a big mistake.
 

wilbury

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Feb 19, 2005
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Local banks should cash them....try yours first, because some only do it for their customers. At the end of the year, you'll get a Form 1099-INT: Interest Income to claim on your taxes.

My $50 bond matured after 30 years and yielded $128.69....$78.68 in interest in 30 years.
So roughly 5% per year? Not that great.
 

BigWesley

Well-Known Member
Jun 10, 2015
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" The initial interest rate on Series I Savings Bonds is 7.12%. You can buy I Bonds at that rate thru April '22"

www.treasurydirect.gov

Obvious that they're nothing like the overall market performance over the last few years.
Yet, decided to partake for a bit of my "Safe " money.

Various rules and regulations attached to their purchase. Early redemption penalty.
Homework Time!

Looks like rate changes every six months, 10K $ limit per person per year.
Plus side: no state tax on interest

,,,cheers
thanks for the info - i bought a $10k bond yesterday, Will be interesting to see the changes to the rate.
 
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Omar81

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Nov 12, 2014
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Local banks should cash them....try yours first, because some only do it for their customers. At the end of the year, you'll get a Form 1099-INT: Interest Income to claim on your taxes.

My $50 bond matured after 30 years and yielded $128.69....$78.68 in interest in 30 years.
If I’m not mistaken, the cost for a $50 bond is (or was) $25.
 

psulongago

Well-Known Member
Aug 29, 2001
3,145
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" The initial interest rate on Series I Savings Bonds is 7.12%. You can buy I Bonds at that rate thru April '22"

www.treasurydirect.gov

Obvious that they're nothing like the overall market performance over the last few years.
Yet, decided to partake for a bit of my "Safe " money.

Various rules and regulations attached to their purchase. Early redemption penalty.
Homework Time!

Looks like rate changes every six months, 10K $ limit per person per year.
Plus side: no state tax on interest

,,,cheers
Interesting, how is interest paid, at maturity, annually, quarterly? Thank you,
 

gr82baspartan

Well-Known Member
Nov 16, 2003
8,066
359
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Compounds semiannually and accrues for 30 years or until cashed out, whichever comes first.

Interesting where on a lark checked out the current yield on 6 month T Bills. It's 1.16%.
May 1 Annual rate for new I savings bonds may be about 9.6%
So you could get about 4.8% till the six month rate reset kicks in Nov 1.
Bought some last December for first time.
Can't liquidate them for a year. cool.

,,,cheers