I-Bonds paying 9.6%

[NPT]

I Bonds are Set to Pay 9.6% In Annual Interest Through October | The Motley Fool

Have $10,000 or less that's sitting there and depreciating in value as inflation makes literally everything but a free walk in the park more...

www.fool.com

 

[snarlcakes]

I Bonds are Set to Pay 9.6% In Annual Interest Through October | The Motley Fool

Have $10,000 or less that's sitting there and depreciating in value as inflation makes literally everything but a free walk in the park more...

www.fool.com

A buddy was trying to get me to buy some the other day. I know next to nothing about the bond market. What’s the risk?

 

[NPT]

A buddy was trying to get me to buy some the other day. I know next to nothing about the bond market. What’s the risk?

Essentially no risk .... US government bonds but you can only buy $10,000 per person. Just go to TreasuryDirect and set up and account and buy.

 

[twenty02]

A buddy was trying to get me to buy some the other day. I know next to nothing about the bond market. What’s the risk?

You can't redeem them at all for 1 year.... and there is a 3 month interest penalty when redeemed before they mature (which is 30 years). So illiqudtity for 1 year is really the only "risk"

 

[UncleMark]

You can't redeem them at all for 1 year.... and there is a 3 month interest penalty when redeemed before they mature (which is 30 years). So illiqudtity for 1 year is really the only "risk"

nitpick//

The 3 mo penalty goes away after 5 years

//nitpick

 

[ribbont]

A buddy was trying to get me to buy some the other day. I know next to nothing about the bond market. What’s the risk?

Missing out on the eventual market rebound.

 

[Aloha Hoosier]

I Bonds are Set to Pay 9.6% In Annual Interest Through October | The Motley Fool

Have $10,000 or less that's sitting there and depreciating in value as inflation makes literally everything but a free walk in the park more...

www.fool.com

I’ve had them for a long time. I bought $100 of I-Bonds every pay check for over 20 years. Still have a good chunk of them. I used the rest to pay part of my daughter’s college expenses. There were many years over the past 30 when the interest rate was very little. There is no guarantee in investing.

 

[twenty02]

I’ve had them for a long time. I bought $100 of I-Bonds every pay check for over 20 years. Still have a good chunk of them. I used the rest to pay part of my daughter’s college expenses. There were many years over the past 30 when the interest rate was very little. There is no guarantee in investing.

There was rarely a time when they made much sense.... before the Fed made the world upside down.... you could have found CDs or high yield savings accounts that paid at least inflation rates. But no more.

 

[NPT]

There was rarely a time when they made much sense.... before the Fed made the world upside down.... you could have found CDs or high yield savings accounts that paid at least inflation rates. But no more.

The ones I bought in the early 2000s pay 3.4% over inflation and some that I bought a couple years later pay 1.8% over inflation. Since then I had not bought any until the last 2-3 years.

 

[twenty02]

The ones I bought in the early 2000s pay 3.4% over inflation and some that I bought a couple years later pay 1.8% over inflation. Since then I had not bought any until the last 2-3 years.

Yeah really meant anytime in the last 13-14 years or so. I can recall getting 5%+ from a HYSA in mid 2000s.

 

[NPT]

Yeah really meant anytime in the last 13-14 years or so. I can recall getting 5%+ from a HYSA in mid 2000s.

Yeah, like you, I saw no reason to buy them in the last 15 years. I use Ally bank a lot and their penalty on a CD used to be only 3 months interest no matter the length of the CD (it's not that way now) so any CDs I bought were just about always for 5 years and if rates went up quite abit (for Aloha ) I would just cash in the old one and get a new one at the higher rate.