I Bonds’s new variable rate will rise to 9.62% with the May reset

Discussion of the Cash portion of the Permanent Portfolio

Moderator: Global Moderator

Post Reply
User avatar
vnatale
Executive Member
Executive Member
Posts: 7122
Joined: Fri Apr 12, 2019 8:56 pm
Location: Massachusetts
Contact:

I Bonds’s new variable rate will rise to 9.62% with the May reset

Post by vnatale » Tue Apr 12, 2022 8:07 am

https://tipswatch.com/2022/04/12/i-bond ... may-reset/

I Bonds’s new variable rate will rise to 9.62% with the May reset
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
User avatar
GT
Executive Member
Executive Member
Posts: 244
Joined: Sun Jan 20, 2013 7:54 pm

Re: I Bonds’s new variable rate will rise to 9.62% with the May reset

Post by GT » Tue Apr 12, 2022 10:43 am

vnatale wrote:
Tue Apr 12, 2022 8:07 am
https://tipswatch.com/2022/04/12/i-bond ... may-reset/

I Bonds’s new variable rate will rise to 9.62% with the May reset
Thanks Vnatale!!
barrett
Executive Member
Executive Member
Posts: 1824
Joined: Sat Jan 04, 2014 2:54 pm

Re: I Bonds’s new variable rate will rise to 9.62% with the May reset

Post by barrett » Tue Apr 12, 2022 11:25 am

GT wrote:
Tue Apr 12, 2022 10:43 am
vnatale wrote:
Tue Apr 12, 2022 8:07 am
https://tipswatch.com/2022/04/12/i-bond ... may-reset/

I Bonds’s new variable rate will rise to 9.62% with the May reset
Thanks Vnatale!!
Yes, thanks for posting that, Vincent! And I agree with what kbg wrote in the other thread that this is not good at a macro level because it means that inflation is out of control. That month-over-month rise in the CPI-U translates to something like 16% inflation. True, it's only one month of data and could be affected a lot by gas prices, but, damn that's high.

I do think that we (meaning my wife an I) will figure out a way to get another $10,000 of I-Bonds before the end of April. I have to keep reminding myself that all they are doing is more or less keeping up with inflation BEFORE taxes, but there is no other option to get that kind of safe return elsewhere.
User avatar
jhogue
Executive Member
Executive Member
Posts: 717
Joined: Wed Jun 28, 2017 10:47 am

Re: I Bonds’s new variable rate will rise to 9.62% with the May reset

Post by jhogue » Sun Apr 17, 2022 8:52 am

I-bonds = TINA for Cash!
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
barrett
Executive Member
Executive Member
Posts: 1824
Joined: Sat Jan 04, 2014 2:54 pm

Re: I Bonds’s new variable rate will rise to 9.62% with the May reset

Post by barrett » Thu Apr 21, 2022 12:23 pm

Just bought my 2022 allotment of I-Bonds today. I wanted to lock in the 7.12% for six months before the annualized rate jumps to 9.62% on 5/1/22. Will let you all know in a few years if that was a good move. O0

Took me maybe five minutes to get this all done on Treasury Direct. I still don't like having these bonds in electronic form just because it's one more layer that my wife has to figure out if I kick. Also, not sure if this is a long-term hold or just a good place to park $10,000 until 7/1/23.
User avatar
jhogue
Executive Member
Executive Member
Posts: 717
Joined: Wed Jun 28, 2017 10:47 am

Re: I Bonds’s new variable rate will rise to 9.62% with the May reset

Post by jhogue » Thu Apr 21, 2022 2:07 pm

barrett wrote:
Thu Apr 21, 2022 12:23 pm
Just bought my 2022 allotment of I-Bonds today. I wanted to lock in the 7.12% for six months before the annualized rate jumps to 9.62% on 5/1/22. Will let you all know in a few years if that was a good move. O0

Took me maybe five minutes to get this all done on Treasury Direct. I still don't like having these bonds in electronic form just because it's one more layer that my wife has to figure out if I kick. Also, not sure if this is a long-term hold or just a good place to park $10,000 until 7/1/23.
So, regardless of what happens, I-bonds have you covered.
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
User avatar
jhogue
Executive Member
Executive Member
Posts: 717
Joined: Wed Jun 28, 2017 10:47 am

Re: I Bonds’s new variable rate will rise to 9.62% with the May reset

Post by jhogue » Tue Apr 26, 2022 6:52 pm

FYI, US Savings bonds investors:

I logged into my TreasuryDirect account this morning, ordered my pre-May 1 quota of I-bonds, hit the submit button, and was informed (after several minutes wait) that TreasuryDirect was "unavailable" and I should try again later.

Speculation on a thread over at bogelheads is that TreasuryDirect's server has been overwhelmed by the last-minute rush to lock-in the combined 7.12% / 9.62% guaranteed interest rate before the May 1 rate re-set.

I logged in again later in the day and this time TreasuryDirect confirmed my order.

I have recorded my dissatisfaction by marking "Poor" on the website exit survey and intend to follow up with an email to that effect. Can you hear me, Janet Yellin?
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
User avatar
ochotona
Executive Member
Executive Member
Posts: 3238
Joined: Fri Jan 30, 2015 5:54 am

Re: I Bonds’s new variable rate will rise to 9.62% with the May reset

Post by ochotona » Sun Jun 12, 2022 11:44 am

US Treasury sent me an email saying they expect conversion of paper I-Bonds to digital to take SIXTEEN WEEKS! >:(
User avatar
joypog
Executive Member
Executive Member
Posts: 159
Joined: Wed Apr 27, 2022 7:42 pm

Re: I Bonds’s new variable rate will rise to 9.62% with the May reset

Post by joypog » Sun Jun 12, 2022 12:29 pm

ochotona wrote:
Sun Jun 12, 2022 11:44 am
US Treasury sent me an email saying they expect conversion of paper I-Bonds to digital to take SIXTEEN WEEKS! >:(
Yeah...that's why I'm not interested the whole tax return in paper I-bonds gimmick. Seems like a total PITA.

I know its by design...but I bonds aren't THAT awesome ar they?
I have no clue. Ask me next May.
User avatar
jhogue
Executive Member
Executive Member
Posts: 717
Joined: Wed Jun 28, 2017 10:47 am

Re: I Bonds’s new variable rate will rise to 9.62% with the May reset

Post by jhogue » Sun Jun 12, 2022 12:32 pm

I don't convert my paper I-bonds to digital. I keep them in my local bank safe deposit box, along with some gold. A bit of physical diversification is never a bad thing.
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
barrett
Executive Member
Executive Member
Posts: 1824
Joined: Sat Jan 04, 2014 2:54 pm

Re: I Bonds’s new variable rate will rise to 9.62% with the May reset

Post by barrett » Mon Jun 13, 2022 4:10 am

jhogue wrote:
Sun Jun 12, 2022 12:32 pm
I don't convert my paper I-bonds to digital. I keep them in my local bank safe deposit box, along with some gold. A bit of physical diversification is never a bad thing.
I do the same as jhogue. Right now, less than 20% of our US Savings Bonds (still redeeming some old EEs) are in electronic form. We have a fair bit in paper I-Bonds from 1999 to 2011 and no plans to convert any of those. All are stored in a safe deposit box with a list of serial numbers (dates, values, etc.) in a couple of different places.
User avatar
jhogue
Executive Member
Executive Member
Posts: 717
Joined: Wed Jun 28, 2017 10:47 am

Re: I Bonds’s new variable rate will rise to 9.62% with the May reset

Post by jhogue » Thu Jun 16, 2022 8:33 am

barrett wrote:
Mon Jun 13, 2022 4:10 am
jhogue wrote:
Sun Jun 12, 2022 12:32 pm
I don't convert my paper I-bonds to digital. I keep them in my local bank safe deposit box, along with some gold. A bit of physical diversification is never a bad thing.
I do the same as jhogue. Right now, less than 20% of our US Savings Bonds (still redeeming some old EEs) are in electronic form. We have a fair bit in paper I-Bonds from 1999 to 2011 and no plans to convert any of those. All are stored in a safe deposit box with a list of serial numbers (dates, values, etc.) in a couple of different places.
I also keep a list of my I-bonds with serial numbers/dates/values. One way to ensure your heirs can find your I-bonds is to share that list with your local banker, who can help you or your heirs fill out the paperwork to redeem those paper I-bonds.
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
Post Reply