Nearly risk-free I bonds to deliver a record 9.62% interest for the next six months

It is risk free because the US Government is guaranteeing that 9.62% interest. Yes, inflation could be higher than 9.62%, but there is nowhere else on earth that you can get a fully guaranteed interest rate of 9.62% for the next 6 months. You can keep it in a savings or checking account and earn a guaranteed rate close to 0%. You can put it into the stock market, and you MIGHT earn more than 9.62%, but you MIGHT lose 50% also. A guaranteed return of 9.62% for six months is spectacular for cash you you won’t need to touch for a year or two.

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I bought $10k worth in early December at 7.12% for the first 6 months, and I invested another $10k in early January, also at 7.12% for the first six months. All $20k will earn 9.62% for the following 6 months. The next interest rate will be set in November. I suspect that interest rate will be generous given that inflation is still raging. I will buy another $10K in early January.

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The website is mega wonky. Everybody bitches about it. It both sucks and blows. (Not joking).

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I guess I’ll try again. I have too much liquid cash on hand and need to put 10K in the bond.

Thinking about doing this too. I also need a new jet boat, can’t do both. Hmm

I’m thinking maybe do like 3k now and then more later in the year when I have additional money.

I have no idea how interest rates work. So if you put in 10k and the rate is 9.62 that means you’ll earn $962 in one year?

Correct, but the interest rate changes every six months. It can go up or down. I fully expect it to be a generous interest rate when it is set again in November because inflation is still raging and the Fed can’t control it.

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The only “issue” i have with the website is it makes you log back in after every page. If youre looking at your holdings and click back to go to the main page to look at available investments…boom login screen. But other than that no issues.

Thanks for the info.

How long do you plan on keeping your money there before cashing out?

I plan on adding an additional $10k every January until they stop paying a decent interest rate. I can’t earn interest like this anywhere else that is safe.

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Don’t forget to pay your capital gains!

Just so I understand because you seem like you may know.

The same person can buy 1 bond every month.

The 9%+ interest rate is only good for the first 6 months.

This is the part thats a little confusing:

The money cant be touched for the first year and the bond cant be sold for 5 years?

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You can buy up to $10k every year, not every month. But it’s 10k per social security number, so you could buy for your kids as well.

You can’t touch the money for the first year. If you cash out between 1-5 years you lose 3 months of interest. After 5 years there is no penalty for cashing out and you can leave it there for up to 30 years.

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Just got a 10K bond today.

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only 10k…does nothing for me

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Do you even have 10k to spare after all the losses you’ve taken lately?

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An individual can only buy $10,000 per YEAR. Your wife (or kids) can buy $10,000 each per year.
The 9% interest is good for the first six months, the interest rate will be reset every six months. It can go up or down. It was 7.12% for the prior 6 months.
You can’t touch it for the first year, then if you withdraw prior to 5 years you forfeit 3 months of interest (no big deal).
This is a great investment for cash that you don’t need to touch for at least a year (ideally longer).

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It isn’t much, but I plan on adding $10k per year until the interest rates are no longer compelling.

My address always screws up with online verification, so I had to get a form signed by the bank. They finally activated my account so I picked up $10k. I expect the next rate in Oct to be 11% or better. I’ll be buying another $10k in Jan!

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You have some knowledge that leads you to believe the rate will be that high? Or you’re just hoping for that

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