I Bonds - The Perfect Investment Right Now

I have been talking a lot about I Bonds recently. With inflation off the charts these days the interest rates offered on I Bonds have become very attractive. In this video, I discuss what an I Bond is, how to buy them, and the reason that now might be a great time to do so.

I Bonds are securities that earn interest based on both a fixed rate and a rate that is set twice a year based on inflation. The bond earns interest until it reaches 30 years or you cash it, whichever comes first.

For the first six months you own it, the Series I bond we sell from November 2021 through April 2022 earns interest at an annual rate of 7.12 percent. A new rate will be set every six months based on this bond's fixed rate (0.00 percent) and on inflation.

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[oooo]

It was stupidly hard to find that the current nominal bond interest rates are 0%.

[usinebob]

So this is October. I am now seeing this video. Should I purchase now?

[deveeda]

Ok if u brought an I bond for $5000 then want to add another $5000 could u do that in 1 bond

[NatureAmbiances]

great full information! appreciate it!

[kevinmchugh]

Thanks for this information. Very helpful and timely.

[usinebob]

Is the interest compounded if I keep it for years?

[gautam]

Now the rates are 9.62% so really a great advice and video.

[jeremygamingshownaruto]

If I buy 10k bond this year, will I be able to add on another 10k next year? And continue to add on years later?

[Fishouta]

Is the earned interest taxable? And is the interest an annual interest rate?

[jayhkd]

Is it a good idea to invest in the bonds within this month or should I wait. Not sure what to do I don’t want to miss out on the opportunity. Please let me know what u suggest I should do

[michaelnagle]

Great explanation. Not easy to explain. Have watched many videos on the I Bonds. Best presentation I've heard.

[mikerobertson]

The rates given are based off the CPI which heavily understates inflation. So say the CPI is 8%, but in reality prices are going up 15%, you're effectively locking in a 7% annual loss with these instruments? Thanks for the video.

[Gelovan]

I dont get why you say if you have a bond portion in your brokerage account. wouldn't sale of those cause a big loss since the value has cratered on bonds? I love I bonds too. In fact Im looking at it like an annuity-every year I'll pull out money, maybe even monthly, and keep buying them until the inflation rate dips enough. I would add my state income tax rate to what Im getting from I bonds because for comparison with CDs, they have that extra advantage of not being state taxable

[wilsonedwards]

I put in a request for the purchase of an iBond one month ago, and received a (false) reply a day later confirming the purchase. But looking into my TreasuryDirect account, there was no purchase; looking into my bank account showed no withdrawal. After inquiring by e-mail, I was lectured: “...we will respond only to questions satisfying the following two criteria” both of which were met previously. After waiting for another two weeks, I called and was given the message that “it could take up to 8 weeks to process” — not one day as told by theoretical experts here on YouTube. How long is the wait for a human to answer my phone call? “We are experiencing a traffic heavier than usual... your call will be answered in about 2 hours”.

Don’t know if others are met with the same experience.

[ritabaird]

Thanks for a great video. One question - is there a way to designate a beneficiary or do you need to designate this in a Will?

[daryabak]

I registered an account in treasury direct and still have no clue how do I buy “ I bond” I don’t see any options that give me that

[Ocanepa]

Is the rate automatically adjustable when you purchase an I bond? you mentioned it can be fixed or adjustable, I want to make sure I'm not getting a fix rate of 0 when I buy an I Bond.

[JourneyontheTrail]

Great info!! Just been recently researching IBonds. Thanks for sharing!

[garywinter]

Purchased an I-bond in December 2021. Unfortunately it was only for $1000. Got the heads up from Clark Howard.

[ellfozim]

Can I set up, make purchases, sales, etc, in a US Treasury Direct account under my living trust name instead of my own name?