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I Bond rate at 2.2 % starting in May
04-13-2012, 06:34 PM
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#1
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I Bond rate at 2.2 % starting in May
With the CPI announced for March, the next 6 months will be 2.2% starting in May assuming fixed rate is 0% (according to another forum). Any I Bonds purchased prior to end of month is 3.06% for 6 months before changing to 2.2%. The first 4 months of the cycle had little change, with most of the CPI inflation occurring in the past 2 months.
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04-13-2012, 07:50 PM
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#2
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,130
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Thanks for the heads-up 
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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04-13-2012, 08:19 PM
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#3
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Aug 2011
Location: West of the Mississippi
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Greek bonds are about 19% in comparison.
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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04-13-2012, 08:29 PM
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#4
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Give me a museum and I'll fill it. (Picasso)
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Join Date: May 2009
Posts: 9,343
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 Quote:
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Originally Posted by Chuckanut
Greek bonds are about 19% in comparison.
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Thats way too risky for me. I Bonds to me, are gloried short term CDs that pay a better rate and have no state income tax. This is as exotic as I get in the bond arena!
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04-13-2012, 09:39 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
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Looks like those of us who jumped in at the end of October can continue to ride another 6 months,,
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04-13-2012, 09:41 PM
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#6
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Give me a museum and I'll fill it. (Picasso)
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Location: West of the Mississippi
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Quote:
Originally Posted by Mulligan
Thats way too risky for me.!
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Me also. It was offered as a comparison, not a recommendation.
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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04-15-2012, 09:00 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Location: St. Louis
Posts: 1,563
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I am new to I Bonds. Are their yearly taxes on I bonds if you do not sell them?
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04-15-2012, 09:22 AM
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#8
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by rec7
I am new to I Bonds. Are their yearly taxes on I bonds if you do not sell them?
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Taxes are deferred until you cash them in.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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04-15-2012, 11:14 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Location: St. Louis
Posts: 1,563
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Thanks brewer. Can you buy 10k of I Bonds and 10k of EE bonds in the same year?
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04-15-2012, 11:23 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Jan 2005
Posts: 3,532
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Thanks for posting this Mulligan.
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04-15-2012, 12:35 PM
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#11
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Give me a museum and I'll fill it. (Picasso)
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Quote:
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Originally Posted by Dreamer
Thanks for posting this Mulligan.
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Your welcome Dreamer. You know I live a boring life when I track I Bond rates for entertainment! Rec, I believe you can buy 10k of both. However, I dont know the benefit of buying EE bonds and locking in at 0.60% interest, unless you are planning to hold the full 20 years and get your doubling of the principle which equals out somewhere in the neighborhood of a little over 3.5% if my memory serves me.
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04-15-2012, 12:36 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Location: St. Louis
Posts: 1,563
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Thanks Mulligan.
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04-15-2012, 12:39 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Jul 2010
Location: Chicago
Posts: 1,008
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Quote:
Originally Posted by rec7
Can you buy 10k of I Bonds and 10k of EE bonds in the same year?
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That's looks correct, plus you can buy another $5k (per SSN) in I Bonds using your Tax Refund.
Check out the chart for details:
Individual - I and EE Savings Bond Comparison
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04-15-2012, 12:53 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Location: St. Louis
Posts: 1,563
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So a total of 15k of I Bonds. I guess if you do not get a refund you could pay 5k in then you would get a 5k refund.
Thanks Dimsumkid.
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04-15-2012, 01:06 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Jul 2010
Location: Chicago
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Quote:
Originally Posted by rec7
So a total of 15k of I Bonds. I guess if you do not get a refund you could pay 5k in then you would get a 5k refund.
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I saved this article discussing the forms needed to get the I bond using your tax return,IRS form 8888. If you owe, you can still get them using IRS form 4868 and making a payment.
Backdoor to Paper Savings Bonds
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04-15-2012, 04:27 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
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Question about interest forfeiture::
Cashing an I-Bond that is less than five years old results in a one quarter interest give back.
My question is this: Is the give back quarter the last quarter earned, or is it some percentage of the entire amount of interest earned during the life of the bond??
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04-15-2012, 04:59 PM
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#17
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Recycles dryer sheets
Join Date: Feb 2007
Posts: 70
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Quote:
Originally Posted by JPatrick
Question about interest forfeiture::
Cashing an I-Bond that is less than five years old results in a one quarter interest give back.
My question is this: Is the give back quarter the last quarter earned, or is it some percentage of the entire amount of interest earned during the life of the bond??
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Taken from their website:
"If you redeem I Bonds before they’re five years old, you'll forfeit the three most recent months’ interest; at or after 5-years old, you won’t be penalized."
Individual - I Savings Bonds Rates & Terms
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04-15-2012, 05:43 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
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Quote:
Originally Posted by jimbohoward69
Taken from their website:
"If you redeem I Bonds before they’re five years old, you'll forfeit the three most recent months’ interest; at or after 5-years old, you won’t be penalized."
Individual - I Savings Bonds Rates & Terms |
That's what I needed, thanks Jimbo.
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04-29-2012, 01:34 AM
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#19
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Recycles dryer sheets
Join Date: May 2011
Posts: 154
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The EE bond will have a fixed rate of 3.5% from May thru Nov.
This rate has gone up, I wonder if the I bond will have a small fixed rate this time.
Individual - Series EE/E Savings Bond Rates
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04-29-2012, 05:11 AM
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#20
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Recycles dryer sheets
Join Date: Dec 2010
Posts: 63
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Quote:
Originally Posted by heirloom
The EE bond will have a fixed rate of 3.5% from May thru Nov.
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That rate is an exploding rate, applicable only if the Series EE bond is held for 20 years. The rate during the period that ends April 30 is 0.60%.
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