F---ing I-Bonds

[Anonymous]

The interest rate is now 7.12%, which is unheard of for risk-free investments right now. This unfortunately means I probably have to buy some but with their stupid $10,000 limit. Does everyone here chase yield no matter the effort?? I already have to decide how much to allocate to international versus US stocks, etc. I'd rather just stuck to dumping everything into either the market, my mortgage or cash. At some point, your time is better spent focusing on just increasing earning power instead of trying to get a slightly higher return on your investments, no?

[Anonymous]

It’s really not that hard to set up. I use I bonds as part of my bond allocation.

[Anonymous]

I use them for my e-fund, and part of bond allocation. I don't really like chasing yield but ibonds are generally higher than HYSA, short term CDs, etc.

[Anonymous]

plus the 10k limit resets in Jan-- so it's 20k over the next 2 months basically (but the cash is locked up for a year and probably won't earn 7% for the full year)

[Anonymous]

I tried but the online system didn’t work, so I gave up given the small amounts involved.

[Anonymous]

Had no problems with the online system!

[Anonymous]

Anonymous wrote:I tried but the online system didn’t work, so I gave up given the small amounts involved.

I hear people say it’s such a pain, but it’s not anymore difficult than any other online account and I’m not that savvy with the internet. Anyway, it’s worth it. Has been even b4 this bump in rate.

[Anonymous]

I wouldn’t do it if you aren’t planning to buy more

[Anonymous]

I'm going to buy 10k for me, 10k for DH, 10K for DD, 10kfor DD and repeat in January. Well, except minus what I've already bought earlier this year. The website is EASY.

[Anonymous]

Anonymous wrote:I'm going to buy 10k for me, 10k for DH, 10K for DD, 10kfor DD and repeat in January. Well, except minus what I've already bought earlier this year. The website is EASY.

How do you buy for minors? A custodial account?

[Anonymous]

What’s the website?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm going to buy 10k for me, 10k for DH, 10K for DD, 10kfor DD and repeat in January. Well, except minus what I've already bought earlier this year. The website is EASY.

How do you buy for minors? A custodial account?

You can put them in your gift box in their name in your account. At this point so far, I've only bought for DD who is no longer a minor, so I don't yet know if there are any hitches when I go to buy for my younger kid.

[Anonymous]

Anonymous wrote:What’s the website?

treasurydirect.gov

[Anonymous]

Holy sh#t.

So let me make sure I understand this:
-The rate is reset every 6 months. The rate from Nov 2021 to April 2022 is 7.12%
-You must hold the bond for at least 12 months.
-If you cash out before 5 years, you lose the last 3 months of interest earnings.
-No state taxes on the income, but you will owe federal taxes on income.
-$10K max per year in electronic bonds, $5K max in paper bonds.

What's the catch?

[Anonymous]

Anonymous wrote:plus the 10k limit resets in Jan-- so it's 20k over the next 2 months basically (but the cash is locked up for a year and probably won't earn 7% for the full year)

40k if you are married