# Series I U.S. savings bonds are paying 7.12% \[update - now 6.89%\]\[Down to 5.27% Mar2023\] **URL:** \ **Category:** Miscellaneous and Personal Stuff I Must Share\ **Created:** [November 28, 2021, 11:03pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092 "2021-11-28T23:03:13Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![nearwildheaven](https://avatars.discourse-cdn.com/v4/letter/n/90db22/32.png) [@nearwildheaven](https://boards.straightdope.com/u/nearwildheaven)\ **Post date:** [November 28, 2021, 11:03pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/1 "2021-11-28T23:03:13Z")
I realize that’s the result of our borderline hyperinflation, but it was quite a pleasant surprise for me. Back in my working days, I bought a bunch of them, and needed to cash one in and found this out. I really hated to do that, but I need the money now. Just an FYI. ---
**Author:** ![Wesley\_Clark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wesley_clark/32/20581_2.png) [@Wesley\_Clark](https://boards.straightdope.com/u/Wesley_Clark)\ **Post date:** [November 29, 2021, 5:48am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/2 "2021-11-29T05:48:01Z")
I don’t know a ton about it but I’ve been hearing of it. My understanding is you can put 10k a year into them. How long will they hold that interest rate? ---
**Author:** ![nearwildheaven](https://avatars.discourse-cdn.com/v4/letter/n/90db22/32.png) [@nearwildheaven](https://boards.straightdope.com/u/nearwildheaven)\ **Post date:** [November 29, 2021, 5:50am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/3 "2021-11-29T05:50:52Z")
It’s widely variable. For a while, I was earning literally 0% interest, but they cannot lose value AFAIK. I know that these aren’t as popular as they once were. ---
**Author:** ![chela](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chela/32/21582_2.png) [@chela](https://boards.straightdope.com/u/chela)\ **Post date:** [November 29, 2021, 12:11pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/4 "2021-11-29T12:11:23Z")
Seriously?! I know they have two components that make the rate, last I looked it up a few weeks ago mine was like 4.??% Must’ve just went through an adjustment. CPI index iirc. ---
**Author:** ![tofor](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tofor/32/13727_2.png) [@tofor](https://boards.straightdope.com/u/tofor)\ **Post date:** [November 30, 2021, 3:36pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/5 "2021-11-30T15:36:57Z")
I was curious, so I looked it up. [This PDF chart](https://www.treasurydirect.gov/indiv/research/indepth/ibonds/IBondRateChart.pdf) shows the rates. The fixed rate is still 0.00% but the variable rate is 7.12%. This rate is good for 6 months from purchase and then recalculated every 6 months and can go to 0.00% You must hold for 1 year, and if you withdraw before 5 years you lose the last 3 months of interest. So, if I understand correctly, if you invest today and hold for just one year, the worst you can do is 3.06% for the year. ---
**Author:** ![Chefguy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chefguy/32/138_2.png) [@Chefguy](https://boards.straightdope.com/u/Chefguy)\ **Post date:** [November 30, 2021, 9:07pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/6 "2021-11-30T21:07:49Z")
Wow, thanks. I just invested. ---
**Author:** ![RitterSport](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/rittersport/32/6326_2.png) [@RitterSport](https://boards.straightdope.com/u/RitterSport)\ **Post date:** [November 30, 2021, 9:09pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/7 "2021-11-30T21:09:21Z")
I bought a bunch of those back in 2001 or something when the base rate was as high as 3.4%, so I guess they’re earning over 10% this period. Wow! ---
**Author:** ![wguy123](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wguy123/32/3161_2.png) [@wguy123](https://boards.straightdope.com/u/wguy123)\ **Post date:** [November 30, 2021, 9:16pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/8 "2021-11-30T21:16:42Z")
That’s fantastic for a zero risk investment! Which I would’ve bought back then. ---
**Author:** ![RitterSport](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/rittersport/32/6326_2.png) [@RitterSport](https://boards.straightdope.com/u/RitterSport)\ **Post date:** [November 30, 2021, 9:22pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/9 "2021-11-30T21:22:18Z")
I was working with a guy who was all about inflation protection and he convinced me to buy these. Smart investment! ---
**Author:** ![Railer13](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/railer13/32/9742_2.png) [@Railer13](https://boards.straightdope.com/u/Railer13)\ **Post date:** [November 30, 2021, 9:46pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/10 "2021-11-30T21:46:58Z")
> [@Chefguy](#): > > I just invested. Can this be done online, via Treasury Direct? ---
**Author:** ![Chefguy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chefguy/32/138_2.png) [@Chefguy](https://boards.straightdope.com/u/Chefguy)\ **Post date:** [November 30, 2021, 10:02pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/11 "2021-11-30T22:02:15Z")
> [@Railer13](#): > > Can this be done online, via Treasury Direct? Yes, but you have to create an account. You can do a direct transfer from your checking account, but you probably already know that. ---
**Author:** ![nearwildheaven](https://avatars.discourse-cdn.com/v4/letter/n/90db22/32.png) [@nearwildheaven](https://boards.straightdope.com/u/nearwildheaven)\ **Post date:** [November 30, 2021, 11:39pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/12 "2021-11-30T23:39:34Z")
That’s the only way they’re doing it now. ---
**Author:** ![Chefguy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chefguy/32/138_2.png) [@Chefguy](https://boards.straightdope.com/u/Chefguy)\ **Post date:** [December 1, 2021, 12:55am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/13 "2021-12-01T00:55:14Z")
I thought I saw an option for a paper purchase, but I was skimming. I’m thinking of liquidating my bank CDs and putting it all into the I-bonds. ---
**Author:** ![Projammer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/projammer/32/559_2.png) [@Projammer](https://boards.straightdope.com/u/Projammer)\ **Post date:** [December 1, 2021, 1:05am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/14 "2021-12-01T01:05:52Z")
I read that you can purchase 10k online and another 5k of paper bonds when you’re filing your tax return. ---
**Author:** ![D\_Anconia](https://avatars.discourse-cdn.com/v4/letter/d/67e7ee/32.png) [@D\_Anconia](https://boards.straightdope.com/u/D_Anconia)\ **Post date:** [December 1, 2021, 1:12am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/15 "2021-12-01T01:12:34Z")
So what are the potential downsides? Like anything else, there has to be some. ---
**Author:** ![Projammer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/projammer/32/559_2.png) [@Projammer](https://boards.straightdope.com/u/Projammer)\ **Post date:** [December 1, 2021, 2:26am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/16 "2021-12-01T02:26:07Z")
With the base rate being zero there is potential for the absolute rate to be zero. Not really a bad downside as there’s no real way to lose money. If you cash out before 5 years and lose 3 months of interest, well, three months of 0% interest is no loss at all. ---
**Author:** ![Chefguy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chefguy/32/138_2.png) [@Chefguy](https://boards.straightdope.com/u/Chefguy)\ **Post date:** [December 1, 2021, 9:51pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/17 "2021-12-01T21:51:03Z")
I just found out that you can only purchase up to $10,000 in a calendar year. ---
**Author:** ![Raza](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/raza/32/213_2.png) [@Raza](https://boards.straightdope.com/u/Raza)\ **Post date:** [December 1, 2021, 10:34pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/18 "2021-12-01T22:34:04Z")
Unfortunately, I’m stuck. I created a Treasury Direct online account a couple of weeks ago. The account was “created” just fine, but immediately locked by Treasury, saying they couldn’t “verify my identity” (I supplied everything they asked for, including my driver license info). They required I fill out a simple form and get a “signature guarantee” from a financial institution. This is when the trouble starts. My bank, Wells Fargo, said they no longer do signature guarantee stamps, for any customer for any reason. My credit union, fairly large as CUs go (with multiple branches), said they do signature guarantees, but not specifically to open an account (presumably, they do it for guaranteeing funds). Both institutions looked over the form and accompanying one page instruction and gave it consideration, but the net result was no-go. So, apparently, no savings bonds for me. (yes of course I can leave the bank I’ve been at for decades where all my bill pay is set up and safe deposit box yadda yadda to spite them) ---
**Author:** ![Chefguy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chefguy/32/138_2.png) [@Chefguy](https://boards.straightdope.com/u/Chefguy)\ **Post date:** [December 1, 2021, 11:46pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/19 "2021-12-01T23:46:39Z")
Man, that sucks. Banks are always all about you until you need something free. ---
**Author:** ![nearwildheaven](https://avatars.discourse-cdn.com/v4/letter/n/90db22/32.png) [@nearwildheaven](https://boards.straightdope.com/u/nearwildheaven)\ **Post date:** [December 2, 2021, 12:02am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/20 "2021-12-02T00:02:33Z")
Wells Fargo has been a horror story for quite a few years, so I’m not really surprised. [Next page](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092.md?page=2)