3 ms·

Nine months at 9% still better than twelve at 0.1%

• parkingrift 4y ago
  It is recalculated every six months. For simplicity let us assume the 7.12% April rate stays the same for 12 months. $10,000 individual purchase. Interest is added monthly but it does not compound, ever. After one year you have earned $712 in interest. However, if you sell at this time you must pay 3-months interest which amounts to $178. Your net gain for the year is $534 for an actual rate of 5.34%. 5.34% is pretty good for a guaranteed return, but it is significantly less than people are expecting. ...especially people such as OP who decided to seemingly purchase a Series I bond on a whim.
  • jzig 4y ago
    Still better than 0.1% > but it is significantly less than people are expecting. What people, and what expecting? I think OP new exactly what they were getting into.