# 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:** 3
**Author:** ![WildaBeast](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wildabeast/32/6_2.png) [@WildaBeast](https://boards.straightdope.com/u/WildaBeast)\ **Post date:** [January 5, 2022, 10:20pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/41 "2022-01-05T22:20:38Z")
In my case, I had no problem at all setting up the account; like I said I set it up years ago. But apparently if you need to add a new bank account for electronic funds transfers they always require filling out this form and having it validated by a bank. They say it’s for “security reasons”, but I have never had to do anything even remotely this complicated to set up electronic funds transfers for anything else, including paying my taxes. ---
**Author:** ![needscoffee](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/needscoffee/32/1076_2.png) [@needscoffee](https://boards.straightdope.com/u/needscoffee)\ **Post date:** [January 6, 2022, 12:00am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/42 "2022-01-06T00:00:52Z")
> [@WildaBeast](#): > > But apparently if you need to add a new bank account for electronic funds transfers they always require filling out this form and having it validated by a bank. They say it’s for “security reasons”, but I have never had to do anything even remotely this complicated to set up electronic funds transfers for anything else, including paying my taxes. I’ve had to do this recently for a corporate Fidelity account to set up wire transfers for a new bank account (actually, for the same old bank account, but I discovered the account number initially set up with them 4 years ago was off by a digit). It didn’t have to be done when the account was initially set up. ---
**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:** [January 6, 2022, 2:10am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/43 "2022-01-06T02:10:24Z")
No, we never received any acknowledgement. We even used their contact form to ask about the status and got this response (shortened): > [@](#): > > A search of our tracking system does not show we have received your request yet. However, please be advised, due to Covid restrictions and increased volumes we are experiencing a longer than normal amount of time to scan your information into the system. Now I’m thinking they lost the form. What a freaking hassle. Now we have to print again and go to the credit union. Again. Grr. ---
**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:** [January 13, 2022, 1:40am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/44 "2022-01-13T01:40:16Z")
> [@Chefguy](#): > > I just found out that you can only purchase up to $10,000 in a calendar year. Speaking of this restriction, does this mean that if I bought $10,000 bond in December, I could then buy another one in January? My understanding of “calendar year” is Jan-Dec. ---
**Author:** ![WildaBeast](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wildabeast/32/6_2.png) [@WildaBeast](https://boards.straightdope.com/u/WildaBeast)\ **Post date:** [January 13, 2022, 9:53pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/45 "2022-01-13T21:53:20Z")
That was how I understood it, and it was what I had intended to do if it weren’t for the fact that it took the Treasury until January to process my paperwork. ---
**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:** [January 13, 2022, 11:09pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/46 "2022-01-13T23:09:03Z")
Ouch. I bought my wife’s in late December, but it cleared prior to the end of the year. ---
**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:** [April 27, 2022, 7:14pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/47 "2022-04-27T19:14:45Z")
We’re coming to the end of April where the rate will change again. Do we think it will go up or down? My wife and I both had the failure to register, procrastinated a long time, finally earlier this month took the forms to one credit union where they put a notary stamp on them before we realized they had misunderstood our request. Got fresh forms and went to another credit union (we had to make an appointment) and it was all very strange, but apparently what they gave us was OK. We got our “received” emails this morning. My wife got a “all set” email this afternoon. I didn’t, but I was able to log into my account and it all looks OK. ---
**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:** [April 27, 2022, 7:49pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/48 "2022-04-27T19:49:58Z")
My wife’s form got lost. At some point we got a warning that her account would expire soon. We let it expire, then tried to create it again using the exact same data and it went through without an issue this time. 🤷‍♂️ I’m not sure if it will go up or down. I’ve already bought my max for the calendar year, but we only did $5K in my wife’s account so we can still do another $5K. ---
**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:** [April 27, 2022, 9:29pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/49 "2022-04-27T21:29:05Z")
> [@tofor](#): > > We’re coming to the end of April where the rate will change again. Do we think it will go up or down? Forbes is predicting 9.62%. [I Bonds Set To Deliver Historic 9.62% Interest Rate (forbes.com)](https://www.forbes.com/sites/robertberger/2022/04/21/i-bonds-set-to-deliver-historic-962-interest-rate/?sh=41ac34e941a7) ---
**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:** [April 27, 2022, 10:05pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/50 "2022-04-27T22:05:41Z")
According to that article, buy them now…don’t wait for the new rates: > [@](#): > > If you buy now in April 2022, you’ll receive the current Composite Rate of 7.12% for a full six months. That’s true even though the Treasury will announce the new rate in about two weeks. > > More importantly, you won’t miss out on the new rate. Once you’ve owned the I bond for six months, you then begin receiving the Composite Rate to be announced in May (believed to be 9.62%). And you’ll receive that rate for a full six months as well. The result is an 8.37% rate for the first year. Not quite sure I understand how the interest rates work, but I guess I’ll go ahead and buy the other $5K now instead of waiting till May. ---
**Author:** ![echoreply](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/echoreply/32/3641_2.png) [@echoreply](https://boards.straightdope.com/u/echoreply)\ **Post date:** [April 27, 2022, 10:08pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/51 "2022-04-27T22:08:22Z")
Any reason to not just buy an inflation protected bond fund, like [FIPDX](https://fundresearch.fidelity.com/mutual-funds/view-all/31635T104?type=sq-NavBar)? It has a 0.05% expense ratio, but I can also sell it whenever I feel like, and have the money in a day or two. ---
**Author:** ![ZipperJJ](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/zipperjj/32/211_2.png) [@ZipperJJ](https://boards.straightdope.com/u/ZipperJJ)\ **Post date:** [April 28, 2022, 1:55am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/52 "2022-04-28T01:55:42Z")
I finally got around to buying my nieces’ yearly savings bonds as I mentioned earlier in the thread. They’ll sit for 8+ years collecting interest so that’s kinda cool. They only get $100 each per year but still, who doesn’t like a few bucks from auntie? ---
**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:** [April 28, 2022, 2:19am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/53 "2022-04-28T02:19:19Z")
If you can swing a monthly contribution these years it’ll really pay off. ---
**Author:** ![Baker](https://avatars.discourse-cdn.com/v4/letter/b/bb73d2/32.png) [@Baker](https://boards.straightdope.com/u/Baker)\ **Post date:** [April 28, 2022, 2:58am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/54 "2022-04-28T02:58:14Z")
Out pf curiosity, I have a question about a savings bond I won many years ago. It was in 1975, and the face value was $25. Is it worth that amount now, or a little more? I kept it as a token of my time in the Army. ---
**Author:** ![nearwildheaven](https://avatars.discourse-cdn.com/v4/letter/n/90db22/32.png) [@nearwildheaven](https://boards.straightdope.com/u/nearwildheaven)\ **Post date:** [April 28, 2022, 3:45am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/55 "2022-04-28T03:45:39Z")
What kind of bond is it? ---
**Author:** ![Baker](https://avatars.discourse-cdn.com/v4/letter/b/bb73d2/32.png) [@Baker](https://boards.straightdope.com/u/Baker)\ **Post date:** [April 28, 2022, 4:41am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/56 "2022-04-28T04:41:38Z")
I’ll have to go out to my safe deposit box to see it again. How much difference does it make? ---
**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:** [April 28, 2022, 11:59am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/57 "2022-04-28T11:59:23Z")
You can put in the serial number on the TreasureDirect website and it will tell you exactly what it is worth. It is probably worth $50-$100 or so, if I had to guess. It will no longer be accruing interest though. I cashed one of mine recently for the first time. Originally a gift from my grandmother many years ago. Such a beautiful document, it didn’t exactly seem right to hand it over. I’m sure the electronic ones are safer, but I think you really lose something without the physical paper especially when it’s a gift. ---
**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:** [April 28, 2022, 12:00pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/58 "2022-04-28T12:00:32Z")
Also, we went ahead and purchased the maximum for both of us yesterday. Once you are in, you never miss out on an interest rate as long as you keep it. ---
**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:** [April 28, 2022, 1:03pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/59 "2022-04-28T13:03:41Z")
I think, but I’m not positive, that TIPS can have a negative return if inflation goes negative, whereas Series I bonds are floored at zero. Also, you’ll definitely have MTM on your investment as real rates rise and fall, and may have to pay taxes along the way on interest that has accrued (or has actually paid out), and any capital gains. Series I bonds are tax deferred for federal taxes, and I think are tax free for state and local. Of course, if you have a lot of money to invest, might be difficult to accumulate enough Series I bonds. ---
**Author:** ![Eva\_Luna](https://avatars.discourse-cdn.com/v4/letter/e/e495f1/32.png) [@Eva\_Luna](https://boards.straightdope.com/u/Eva_Luna)\ **Post date:** [April 28, 2022, 1:13pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/60 "2022-04-28T13:13:44Z")
What about some other kind of financial institution that you already have a relationship with, like one holding an IRA or 401(k)? Or even the one that issues your paychecks? [Previous 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) [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=4)