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Best part... >While waiting for the May 1 reset might look tempting to launch directly into the 9.62% rate, I still strongly recommend buying I Bonds before Ap

Best part... >While waiting for the May 1 reset might look tempting to launch directly into the 9.62% rate, I still strongly recommend buying I Bonds before April 30, which will lock in a 7.12% rate for a full six months, followed by 9.62% for six months. That’s an annual rate of about 8.4%, and there is no other very safe investment that can match that return. >I Bonds must be held for 12 months before you can redeem them. If you redeem them before five years, you will forfeit the last three months of interest. But if you buy near the end of April 2022, you will get full credit for April and can redeem 14 months and a few days later, avoiding taking the interest penalty on the 9.62% rate. >However, I always recommend buying I Bonds every year up to the purchase cap of $10,000 per person per year and holding them until you actually need the money. People who have been buying I Bonds for years — like many of my readers — are very happy right now, collecting an annual rate of 8.4%, plus any fixed rate attached to the original purchase.

eloff 5y ago
Do you have to be a US citizen to purchase these?
- medler 5y ago
  No but you need a social security number and to be a US resident
  - mahesh_rm 5y ago
    Can a Delaware C-Corp buy them?
    - deleted 5y ago
      [deleted]
    - prepend 5y ago
      Only if it has a social security number and is a US resident. (Ie, no since c-corps don’t have socials)
      - koolba 5y ago
        You need a TIN (tax identification number) not SSN. C-corps, LLCs and anything else with a TIN can purchase these bonds directly from the fed.
- vosper 5y ago
  [you may purchase] if you have a Social Security Number and meet any one of these three conditions: - United States citizen, whether you live in the U.S. or abroad - United States resident - Civilian employee of the United States, no matter where you live https://treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ibuy.htm#who https://treasurydirect.gov/indiv/research/indepth/ibonds/res...
  - netfortius 5y ago
    Doesn't work if you live abroad. Certification is only possible in the US.
  - ValentineC 5y ago
    I wonder if an ITIN would suffice.
- tomatowurst 5y ago
  there's just no way to buy em if you are not American as i found out.
UncleOxidant 5y ago
There's also a fixed yield part of iBond interest. Currently that's 0%, but perhaps it will be something around 0.5% due to the Fed raising rates? That could be an incentive for waiting until May to buy.
- Thrymr 5y ago
  That was also addressed in the article: > Will the I Bonds’s fixed rate rise on May 1? > I still say “no,” but conditions are getting better for a fixed rate higher than the current 0.0%. The real yield of a 10-year TIPS has now “surged” to -0.12%, an impressive rise of 85 basis points since the beginning of the year. But until it gets to at least 0.25%, I think it’s unlikely the Treasury will increase the I Bond’s fixed rate. We might see the rate rise in November, which would be available to grab when the calendar resets in January. > My advice: Don’t be waiting for a higher fixed rate that might never come, and miss out on the chance to make $840 on a $10,000 investment in one year. Invest up to the cap before May 1.
deleted 5y ago
[deleted]

eloff 5y ago

Do you have to be a US citizen to purchase these?

medler 5y ago
No but you need a social security number and to be a US resident
- mahesh_rm 5y ago
  Can a Delaware C-Corp buy them?
  - deleted 5y ago
    [deleted]
  - prepend 5y ago
    Only if it has a social security number and is a US resident. (Ie, no since c-corps don’t have socials)
    - koolba 5y ago
      You need a TIN (tax identification number) not SSN. C-corps, LLCs and anything else with a TIN can purchase these bonds directly from the fed.
vosper 5y ago
[you may purchase] if you have a Social Security Number and meet any one of these three conditions: - United States citizen, whether you live in the U.S. or abroad - United States resident - Civilian employee of the United States, no matter where you live https://treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ibuy.htm#who https://treasurydirect.gov/indiv/research/indepth/ibonds/res...
- netfortius 5y ago
  Doesn't work if you live abroad. Certification is only possible in the US.
- ValentineC 5y ago
  I wonder if an ITIN would suffice.
tomatowurst 5y ago
there's just no way to buy em if you are not American as i found out.

UncleOxidant 5y ago

There's also a fixed yield part of iBond interest. Currently that's 0%, but perhaps it will be something around 0.5% due to the Fed raising rates? That could be an incentive for waiting until May to buy.

Thrymr 5y ago
That was also addressed in the article: > Will the I Bonds’s fixed rate rise on May 1? > I still say “no,” but conditions are getting better for a fixed rate higher than the current 0.0%. The real yield of a 10-year TIPS has now “surged” to -0.12%, an impressive rise of 85 basis points since the beginning of the year. But until it gets to at least 0.25%, I think it’s unlikely the Treasury will increase the I Bond’s fixed rate. We might see the rate rise in November, which would be available to grab when the calendar resets in January. > My advice: Don’t be waiting for a higher fixed rate that might never come, and miss out on the chance to make $840 on a $10,000 investment in one year. Invest up to the cap before May 1.

deleted 5y ago

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