# Question on the new high interest rate I Bonds

**URL:** <https://boards.straightdope.com/t/question-on-the-new-high-interest-rate-i-bonds/963836>\
**Category:** Factual Questions\
**Created:** [May 2, 2022, 7:38pm UTC](https://boards.straightdope.com/t/question-on-the-new-high-interest-rate-i-bonds/963836 "2022-05-02T19:38:13Z")\
**Posts on this page:** 5\
**Page:** 2

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**Author:** ![Jackknifed\_Juggernaut](https://avatars.discourse-cdn.com/v4/letter/j/9de053/32.png) [@Jackknifed\_Juggernaut](https://boards.straightdope.com/u/Jackknifed_Juggernaut)\
**Post date:** [May 6, 2022, 4:18pm UTC](https://boards.straightdope.com/t/question-on-the-new-high-interest-rate-i-bonds/963836/21 "2022-05-06T16:18:38Z")

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Sorry, I think it’s just bad communication on my part (or perhaps some confusion with the OP’s question). I think OP’s husband was concerned that the 9% rate is total over 5 years, so thus only about a ~2.2% effective rate. This certainly isn’t the case.

I didn’t mean to present any scenario or example of the rate resetting at exactly 9.6% every 6 months over the next 5 years. If it did, then your math works.

Everyone should keep in mind that no one wants the rate to stay that high (unless you have alot more invested than you spend). The $10k-$15k that I expect to invest in I-bonds annually will only alleviate some of the pain of inflation reducing the purchasing power of my pension and 401k balances during retirement.

ETA: the other benefit to these bonds is that they use CPI as their baseline, and CPI tends to over-state actual inflation. So that can be a big plus.

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**Author:** ![Omar\_Little](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/omar_little/32/269_2.png) [@Omar\_Little](https://boards.straightdope.com/u/Omar_Little)\
**Post date:** [May 6, 2022, 5:25pm UTC](https://boards.straightdope.com/t/question-on-the-new-high-interest-rate-i-bonds/963836/22 "2022-05-06T17:25:43Z")

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I have $40k that I just moved into these I-bonds.

Even if it resets in 6 months back to 2%, I can cash out in 1 year and will have made over 5% yield on my money, which is significantly better than what my money market account pays, (even considered the quarter of lost interest).

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**Author:** ![Jackknifed\_Juggernaut](https://avatars.discourse-cdn.com/v4/letter/j/9de053/32.png) [@Jackknifed\_Juggernaut](https://boards.straightdope.com/u/Jackknifed_Juggernaut)\
**Post date:** [May 6, 2022, 6:09pm UTC](https://boards.straightdope.com/t/question-on-the-new-high-interest-rate-i-bonds/963836/23 "2022-05-06T18:09:15Z")

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The limit is $10k per person per year (and up to $5k more if you direct your tax return proceeds to them) and you can only buy through Treasury Direct. I’m assuming you didn’t set up 4 different accounts for 4 different people, but nevermind if you did.

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**Author:** ![Omar\_Little](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/omar_little/32/269_2.png) [@Omar\_Little](https://boards.straightdope.com/u/Omar_Little)\
**Post date:** [May 7, 2022, 6:06pm UTC](https://boards.straightdope.com/t/question-on-the-new-high-interest-rate-i-bonds/963836/24 "2022-05-07T18:06:55Z")

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Yes, myself, my wife, my trust and her trust. All legal and above board.

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**Author:** ![Jackknifed\_Juggernaut](https://avatars.discourse-cdn.com/v4/letter/j/9de053/32.png) [@Jackknifed\_Juggernaut](https://boards.straightdope.com/u/Jackknifed_Juggernaut)\
**Post date:** [May 7, 2022, 7:13pm UTC](https://boards.straightdope.com/t/question-on-the-new-high-interest-rate-i-bonds/963836/25 "2022-05-07T19:13:26Z")

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Nice, just wanted to make sure you didn’t get the wrong ones, as the website isn’t the easiest to navigate. I had to help my parents through it.

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