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Personal Finance and Investing

Tomconroy

(7,611 posts) Fri Jun 10, 2022, 05:56 AM Jun 2022

US govt I bonds might be a good investment now. [View all]

Last edited Fri Jun 10, 2022, 06:29 AM - Edit history (1)

From today's NY Times:

"There are other options for holding short-term money safely. Briefly put, they include U.S. government I bonds, which yield an amazing 9.62 percent, a rate that is reset every six months. They are very safe but imperfect, especially for short-term purposes. Not only are there limits on the amounts you can buy, but there are also small penalties if you cash them in before five years."

The rate will be reset in a few months. Investment limit is ten grand per annum.

Any investment pros want to weigh in and explain any downside?

13 replies

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Highlight:

US govt I bonds might be a good investment now. [View all] Tomconroy Jun 2022 OP

There are two parts to i-bonds. An inflation part, and a fixed part. JohnSJ Jun 2022 #1

This message was self-deleted by its author sl8 Jun 2022 #2

Yes, thanks. I will correct. JohnSJ Jun 2022 #3

Looks like the 9.6 rate is paid for 6 months Tomconroy Jun 2022 #4

Yes, and you can buy right now, and up to October get a 9.62% rate. That rate will change in JohnSJ Jun 2022 #5

There is a 3 month lag in the interest until they are 5 years old. If you would buy one today doc03 Jun 2022 #7

I bought one in June last year at 3.54% and another in January this year at 7.12% now 9.62%. doc03 Jun 2022 #6

Never a penalty on overpaying estimated income tax. Except one is giving the Treasury progree Jun 2022 #8

It sure is, I wasnt sure about overpaying estimated tax. doc03 Jun 2022 #9

Can my wife and I both buy a $10,000 bond? bif Jun 2022 #10

Yes JohnSJ Jun 2022 #11

I am Rebl2 Jun 2022 #12

If its worth the fuss to you of setting up an account at Treasurydirect.gov progree Jun 2022 #13