re: Series I bond Rate is PREDICTED to be 9.62 for May

The limit is 10k per person per year with some exceptions so depending on what substantial means to you, this might not move the needle. However, it’d be 10k earning better than anywhere else I’d imagine.

quote:

---

For the at least the next year and 3 months yes. Fed said they see inflation above 5% for the next 3 yrs. That is pretty good return and no risk if you ask me.

---

Seems like a no brainer

I get the numbers you state. And while the penalties of loss of 3 months interest are in play for 5 years. Where else are you going to get these return on 20k. I also seem to think these rates may out perform the S&P for more than a year. Unfortunately

quote:

---

So currently, the max return for a calendar year (in this hypothetical, the rate doesn't go up or down after 6 months) is $1,924.00, with a $1,346.80 return after penalties?

---

I’m in

It will be interesting to see the November rate.

This really has been an anomaly. The interest earned on i bonds is usually fairly low. I don’t know how much longer it will be over 7%. But yea obviously when it’s over 7% it’s a no brained to stash money you don’t need for at least 12 months

People laugh at me sometimes when I tell them I put what I can in I-bonds. I have been buying them up since they came out right around the time I was graduating college in 2000 I believe. Was buying automatic $100 a month. Lost a job a few years down the road when the company shut down, so, I stopped the auto buying. Forgot to restart it and bought some more here and there. In 2016, I had to sell some with some unexpected financial issues, which I could have made it through without selling, but I didn't want to wait. Which I did though. I kept my oldest ones and still have been buying since then. And when I say I kept my older ones, they were the paper bonds. Some years back I converted them to all electric. But, I have some from 2000 and 2001 making over 13%. Really kick myself for selling some a few years ago every time I see that number. Some over 10% and some over 12%. I dont understand why, but something to do with the fixed rate at the time when you buy the bond never changes. Currently the fixed rate is 0% I think, but I guess back then, it was higher after the tech bubble.

I just wish I knew about the extra you can buy using your tax refund. I had no idea and missed that by about a few weeks after I filed before I heard about that option. Anyway, I maxed out in November, maxed out for 2022 last month and plan to max out as long as I see more money being printed.

One thing, I really do wish they would make an app for the phone or at least make the log in process more simple. I have never had to go through a log in process like they have with any other website, ever.