# 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:** 4
**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 28, 2022, 2:00pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/61 "2022-04-28T14:00:56Z")
> [@RitterSport](#): > > Of course, if you have a lot of money to invest, might be difficult to accumulate enough Series I bonds We max out our 401 and IRAs, so this is just additional. I wish we could buy more than $10K/yr right now. ---
**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, 7:29pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/62 "2022-04-28T19:29:31Z")
It still pays more than if you, for instance, stashed your money under a mattress. ---
**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, 7:40pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/63 "2022-04-28T19:40:18Z")
A TIPS fund? No, I think you can gain or lose money on a fund like that. ETA: That fund reached a high of 11.75 on 11/9/2021 and is now worth 10.63, so, like a 10% loss since November. I don’t know what the total return (NAV + interest distributions), but I doubt interest was enough to overcome a 10% loss. ---
**Author:** ![squeegee](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/squeegee/32/14537_2.png) [@squeegee](https://boards.straightdope.com/u/squeegee)\ **Post date:** [April 28, 2022, 7:48pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/64 "2022-04-28T19:48:28Z")
So if I buy an I Bond for say $10,000 @ 9.62% yield, at the end of each year I’d have $962 more each year? Is that about right? Or is the interest compounded so we get: Year +1 = $10962 Year +2 = $12016.54 Year +3 = $13172.54? \*Unless I sold before 5 years then I’d forfeit $240.50 for that year (unless it’s compounded)? ---
**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, 8:05pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/65 "2022-04-28T20:05:57Z")
It’s compounded, but that’s not a fixed rate. The real rate is 0.00%. So, if inflation goes back to 2%, you’ll earn 2%. If it jumps to 15%, you’ll earn 15%. ---
**Author:** ![Folacin](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/folacin/32/3195_2.png) [@Folacin](https://boards.straightdope.com/u/Folacin)\ **Post date:** [April 28, 2022, 8:10pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/66 "2022-04-28T20:10:25Z")
It compounds semi-annually, so you’d do slightly better then you calculated ([everything you need to know](https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm) from the IRS site). As RitterSport noted, the rate resets every 6 months, but it will never go below zero (even if there is deflation). ---
**Author:** ![squeegee](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/squeegee/32/14537_2.png) [@squeegee](https://boards.straightdope.com/u/squeegee)\ **Post date:** [April 28, 2022, 8:21pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/67 "2022-04-28T20:21:26Z")
OK, so the 9.26% is for the next 12 (or I guess 6) months yield. So buy the bond and sell once the yield drops and give back 1/4 of the yield for 1 year if under 5 years. ---
**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, 8:24pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/68 "2022-04-28T20:24:56Z")
To be clear, even a zero real rate on a five year bond is great, because real rates are negative out to five years. ---
**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:** [April 29, 2022, 9:17pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/69 "2022-04-29T21:17:31Z")
@Eva_Luna I could try Fidelity (IRA/401k); they have an office about 45 minutes away, but I’ve given up. Now, I’m probably the last person to learn this, but I can buy bonds (not bond _funds_, but actual individual bonds) in my IRA directly from Fidelity, including Treasuries, corporate, and municipals. As rates climb, I’ll consider buying some of those. They won’t pay 9%, but the rate I lock in will be permanent for the life of the bond (granted, the resale value of that bond may go up or down, but I still get the full-meal-deal if I hold it to maturity). ---
**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 29, 2022, 11:35pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/70 "2022-04-29T23:35:47Z")
Now I just need to figure out what I can buy outside an IRA that has less sucky (but guaranteed) returns than a CD - we have been saving up to remodel the attic, and we just now have reached the lowest number we were quoted for the project…about 4 years ago. I am sure that number would be significantly higher now, but we don’t want to take on debt (and we don’t want anyone working in our house right now, anyway). But it would be nice not to have our savings lose real value by the time we are ready to move forward with the project. ---
**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:** [April 30, 2022, 3:54pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/71 "2022-04-30T15:54:35Z")
> [@Raza](#): > > Now, I’m probably the last person to learn this, but I can buy bonds (not bond _funds_ , but actual individual bonds) in my IRA directly from Fidelity, including Treasuries, corporate, and municipals. Depending on when you learned this, you are either the last or second-to-last, after me. Also, you may want to check out the Fidelity bond-ladder tool. > [@Eva\_Luna](#): > > Now I just need to figure out what I can buy outside an IRA that has less sucky (but guaranteed) returns than a CD You can buy bonds outside an IRA. ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [April 30, 2022, 5:57pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/72 "2022-04-30T17:57:53Z")
I just asked my CFP to put $10k in for me. He thinks it’s a good idea. ---
**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:** [May 2, 2022, 2:15pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/73 "2022-05-02T14:15:22Z")
The new rate is 9.62%, almost a half percent better than predicted. ---
**Author:** ![sachertorte](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/sachertorte/32/3727_2.png) [@sachertorte](https://boards.straightdope.com/u/sachertorte)\ **Post date:** [May 2, 2022, 2:19pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/74 "2022-05-02T14:19:43Z")
I didn’t realize the smart play was to buy at the end of April. Oh well. I’ve been buying every year for a while now so I’m not too choked up about it. I’ll be buying more this month. ---
**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:** [May 3, 2022, 12:16pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/75 "2022-05-03T12:16:04Z")
The smart play was to buy 6 months ago, but the government made that difficult and we procrastinated. Whether buying in April or May is better…that will depend on how long you stay in, and what the market does. ---
**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:** [May 4, 2022, 2:11am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/76 "2022-05-04T02:11:15Z")
This may have been answered already: I bought i-bonds at the 7.12% rate. What happens to them now that the rate is up over two points? Do they stay at the lower rate? ---
**Author:** ![squeegee](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/squeegee/32/14537_2.png) [@squeegee](https://boards.straightdope.com/u/squeegee)\ **Post date:** [May 4, 2022, 2:42am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/77 "2022-05-04T02:42:31Z")
The bonds re-price. You get the higher rate for the next six months. Then they reprice again. Rinse, repeat. ---
**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:** [May 4, 2022, 11:37am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/78 "2022-05-04T11:37:52Z")
To clarify what squeegee said, you get the 7.12% rate for the first 6 months from the purchase date. Then you get the 9.62% rate for 6 months, then you get the next rate for 6 months. ’ The rate updates every 6 months, and you always get each rate for 6 months. But _which_ 6 months you earn that rate for depends on when you originally purchased the bond. ---
**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:** [May 4, 2022, 11:46am UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/79 "2022-05-04T11:46:01Z")
My bonds with a fixed rate component are up to 8.72% with a the increase to 9.62 they’ll be earning over 10. Wish I had added a couple more zeroes to those purchases 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:** [May 4, 2022, 12:01pm UTC](https://boards.straightdope.com/t/series-i-u-s-savings-bonds-are-paying-7-12-update-now-6-89-down-to-5-27-mar2023/955092/80 "2022-05-04T12:01:22Z")
Yeah, I have some with a 3.4% or 3.6% real rate. Should have kept buying back then. [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=3) [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=5)