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

[vnatale]

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

[GT]

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]

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.

[jhogue]

I-bonds = TINA for Cash!

[barrett]

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.

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.

[jhogue]

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.

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.

[jhogue]

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?

[ochotona]

US Treasury sent me an email saying they expect conversion of paper I-Bonds to digital to take SIXTEEN WEEKS!

[joypog]

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?

[jhogue]

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.

[barrett]

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.

[jhogue]

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.