US Savings Bonds Series I

[gdale6]

Hi all,

Thought I would let you all know US Savings Bonds (Series I) are currently paying 9.62% APR for the first 6 months.

https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm#irate

[xenon3030]

It seems to be a safer option vs investing in stock market with its current downfall trends.

Is it feasible to get the money back after 6 months, with the interest, and without penalty?

[DakotaM]

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@xenon3030 wrote:

It seems to be a safer option vs investing in stock market with its current downfall trends.

Is it feasible to get the money back after 6 months, with the interest, and without penalty?

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No, you can't withdraw I bonds at all for 1 year and withdrawals before 5 years incur a penalty of the last 3 month's interest 

[PNWRambler]

Not only is your money tied up with penalites for 5 years, but the stock market is currently at a discount now.  If a fund normally makes 12% then you'll make even more purchasing now and riding the wave back up.  This is (theoretically) the best time to open a mutual fund or ROTH IRA if you can let the money sit for a couple years or more.  

[longtimelurker]

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@PNWRambler wrote:

Not only is your money tied up with penalites for 5 years, but the stock market is currently at a discount now.  If a fund normally makes 12% then you'll make even more purchasing now and riding the wave back up.  This is (theoretically) the best time to open a mutual fund or ROTH IRA if you can let the money sit for a couple years or more.  

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If it is at or near the bottom.     I did a Roth conversion a little while back because the price had dropped so the conversion would be cheap.   Naturally, the stock is MUCH lower now so I've paid much more tax than I need.   Sure, in X time it might climb much higher and I can pretend I did a clever thing.   But anyone buying in to the market now is making an assumption, it could go much lower before doing a 12% annual return (which is somewhat high anyway).   I bonds are for those that want some safety with part of their portfolio.

[xenon3030]

This year should be the best time to do investments on S&P500 or the other tech sectors, possibly till the end of the year to gain excellent long term profits. I guess the downfall has not reached yet, possibly due to severe chip shortage issues and this unique parameter is potentially severly limiting the revenue of several sectors (car, PC, mobile, etc). If you add other ongoing uncerain parameters like gas price overshoot, pandemic, war, etc. it is less likely that market can recover in a few months.

It is several months that I want to buy a car of my choice and cannot find in the market (all reserved, or severe markup).