[CoachKandSportsguy]

Americans snatched up nearly $11 billion in Series I bonds over the past six months

compared with around $1.2 billion during the same period in 2020 and 2021, according to Treasury Department records.

Looks like everyone is not alone in reaching for yield during increasing inflation times.

Sure as heck beats CDs

[shut the front door]

I grabbed one last week, I think it was you who suggested it here. If so, THANKS!

[dewilson58]

Think what would happen without an annual limitation......$11B would be a drop in a bucket.

Less debt to China.

[Robbb]

I get the 10% they are paying for the first year, but after that aren't they paying 0% for the next 4 years that you are required to hold them. Is this correct?

[dewilson58]

Originally Posted by Robbb

I get the 10% they are paying for the first year, but after that aren't they paying 0% for the next 4 years that you are required to hold them. Is this correct?

No.

[Stu from NYC]

Originally Posted by dewilson58

Think what would happen without an annual limitation......$11B would be a drop in a bucket.

Less debt to China.

But the deficit would go up by a huge amount.

[dewilson58]

Originally Posted by Stu from NYC

But the deficit would go up by a huge amount.

No, use the new I Bond funds to pay down (or maturing) old China debt.

[tophcfa]

Originally Posted by dewilson58

No, use the new I Bond funds to pay down (or maturing) old China debt.

Great in theory, but government doesn’t get it and won’t use proceeds to pay down debt, just spend more.

[Stu from NYC]

Originally Posted by dewilson58

No, use the new I Bond funds to pay down (or maturing) old China debt.

Borrow from Peter to pay Paul? You can do better.

[Hifred]

Originally Posted by CoachKandSportsguy

Looks like everyone is not alone in reaching for yield during increasing inflation times.

Sure as heck beats CDs

Yes - I bought the maximum which was $10,000 a year per person. What a great deal 7%. I bought mine a month ago. Not sure what the rate is if you purchase today. I wish I could have bought more. They are great during times of inflation.

[Hifred]

Robb, you are not correct. They are liquid after one year.

They could be one of the best cash investments you ever make. I bonds are a good cash investment because they are guaranteed and have tax-deferred, inflation-adjusted interest. They are also liquid after one year.

[Altavia]

Originally Posted by Hifred

Yes - I bought the maximum which was $10,000 a year per person. What a great deal 7%. I bought mine a month ago. Not sure what the rate is if you purchase today. I wish I could have bought more. They are great during times of inflation.

You can also purchase up to an additional $5K with a tax refund.

[dewilson58]

Originally Posted by Stu from NYC

Borrow from Peter to pay Paul? You can do better.

Much rather have Villagers hold our debt than China.

You probably like Russian oil too.

[dewilson58]

Originally Posted by tophcfa

Great in theory, but government doesn’t get it and won’t use proceeds to pay down debt, just spend more.

You know better than that............the government does not look at newly issued treasuries and then go spend.

[rustyp]

I posted this synopsis 04-24-2022, 10:02 AM. The benefit of buying before the end of April was knowing the interest rates for a full year. If you buy now you know your first 6 months will be 9.62% but you won't know the second 6 month term rate until November this year.

Here is what I posted:



If you purchase an I bond before the end of this coming week(end of April) you will be guaranteed 7.12% interest for the first 6 months and then 9.62 % interest for the following 6 months. After that the rates of your bond changes every 6 months (may and nov) indexed to inflation. You must hold for one year. If cashed in between years 2 - 5 you forfeit the last three months interest. After 5 years no penalty. These I bonds are issued solely by the government. The only place to purchase is TreasuryDirect - Home. Google I Bonds on YOUTUBE - lots of videos at present.