In December I suggested investing excess cash (up to $10,000 per person/legal entity per year) in I-Bonds and getting a guaranteed, risk-free 7.12% return for six months. The rate resets twice annually and the next reset on May 1 will be at 9.62% (per linked article below). Those who invested already will get the 9.62% rate starting six months from their date of purchase. If you have not invested yet and do so before end of April, you will get 7.12% for six months from date of purchase and 9.62% for next six months. Have to hold for at least one year, penalty of 3-month interest waiver if sold before 5 years, no penalty after 5 years. Can hold for as long as 30 years. If you have excess cash sitting in a bank account earning next to nothing, this is better than any other risk-free investment (CDs or money market) by orders of magnitude.

I-Bonds

Maxed out for the year.

Thanks for the heads up

I’m missing the significance of purchasing before May.
I don’t understand why that matter’s.

If you buy before May you get 7.12% for 6 months from date of purchase and then 9.62% for next six months. If you wait until May to buy you get the 9.62% for the first six months and an unknown return for the next six months. So by buying in April you are guaranteed a 6 month return of 7.12%.

Ok,
Got it..
Makes sense..

Can you purchase for kids under 18? I know the growth is not taxed if used for college so it seems like a good place to stick some school money for kids who will be attending soon.

Read entire article, especially 529 account section. https://thefinancebuff.com/buy-i-bonds-kids-name.html

I used bonds to fund some of my kids college.

great
thanks

We bought some Series E bonds 25 years ago. Don't know what they are worth now but it is a lot more than I expected.

I've never invested in bonds, so pardon the ignorance here. I've read along the way that as interest rates rise, bonds generally go down. It looks like the Fed is going to raise rates and continue until (IF) the current dodo's running the show get inflation under control. For those of you who have done bonds, what's your experience with this case? If $10,000 is max you can put in, then not a really big deal, but heck of a lot better than the $1.68/year I make at the bank on amount.