I see the interest rate is 10.85% right now. Not too shabby.

"I bonds have an annual interest rate derived from a fixed rate and a semiannual inflation rate."

Recently I helped an ex-mil cash her inherited bonds; she couldn't get out of that investment fast enough but I rather liked them; her sistr had bought them and it would have been nice if ex-mil had kept them in her portfolio for the next generation.

https://www.treasurydirect.gov...od_ibonds_glance.htm

Well - yes and no. At least as I understand it.

If you already own older Series I bonds the rate may well be 10% plus. But you can't buy those bonds from someone else. They don't trade. You can only but new bonds from the Treasury and redeem them back to the Treasury.

New Series I bonds bought now and through April 2022 pay 7.12%. However another yes and no. That rate is only guaranteed for 6 months. Series I bonds are also known as inflation bonds. They pay a composite rate consisting of both a fixed rate and a rate pegged to inflation. I think its adjusted every 6 months. Right now the fixed rate is zero, so all of the 7.12% interest rate is due to inflation. If inflation falls over the 30 year maturity life the rate will down and could go to zero. You can redeem the bond at any time after 6 months and before maturity for full face value, but you forfeit the last 3 month of interest. Although 3 x 0 = 0, so if it does go to zero and you redeem you are not giving up much.

Right now 7.12% is a very decent rate and inflation is going up at least for now so it might be worth considering if the advantages outweigh the disadvantages. But its more complicated than it looks.

Disclaimer - I am just an ordinary Joe Schmo, not a financial advisor so take all this FWIW and do the homework for yourself.

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New Series I bonds bought now and through April 2022 pay 7.12%.

Yes, that is what I heard, which caused me to check on some bonds I've been holding for over twenty years. I was quite surprised when I saw that they were drawing almost 11 percent.

Bought some about 15 years ago and they have done well and Biden will make them do even better. Way To go Brandon.

Didn't realize that there was a cap on how much you could buy until I went to the linked site.

I'd be curious to know what the real inflation rate is this year as the government published version seems way low to me.
Having experienced the Jimmy Carter years, I'd hate to have too much tied up in bonds that really aren't keeping up with inflation and seeing my assets slip away each year like that.
The question is, where else can you park some money safely during times like this and not be sliding backwards or taking serious risks?

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The question is, where else can you park some money safely during times like this and not be sliding backwards or taking serious risks?

that is the million dollar question. it seems some risk needs to be taken to get the better returns. just the way it is, sadly.

Well, yes. We've discussed this in the past. Its not a way to get rich on its own. It is a way to hold your ground and not get "poor". First and foremost, you've got to be a saver, not a spender. Its a changing thing and its gotten a bit worse over time. It might not even be a good singular vehicle to retire on, but I'm doing ok on it.

A story I told once before here. My wife was a nurse, and her doctors group kind of had a doctors party. They invited the nurses and spouses. Most had the common sense to leave their hubby's at home (or the hubby's had the sense to not come.) So the doctors all went to one side for a talk. The nurses and office girls went off for the same thing. I didn't mind because they all just left me alone. But the head doctor wasn't about to leave me in peace. They were discussing investments, and what each had been using. So he said "Dick", what are you putting your money on. I told him I didn't want to tell because you'll all laugh. Of course he prodded so I told them U S Govt savings bonds. I was right, they all laughed.

So the following year the same thing happened, the folks separated into the same groups. So the head guy (whose house it was at again) started in on me again. But he said he bets they won't be laughing this year. Nope, it was the 2008 or so recession years. So I told him still I bonds but now they were all paying 7%, give or take.

We've already noted the investment limits. Now its down to $5,000 or $10,000, it was $30,000 per person. Back in 2000, we put our $60,000 in them. It was, to me, a good investment. But the chisler's in the government reduced it to when too many of us saw what it was. I'm retired now and don't see the need to invest for retirement. With the rates offered, its tempting. For those of you with cash to invest, it might be a good thing. If it looks sour in a year or so, you can get out. I don't trust the Feds to play honestly. They could go to zero on a whim. Still better than $0.003% on a traditional savings account.

Keep in mind that you're not really saving anything if inflation is 7+% So all you're doing is saving your money, not really earning much interest, and eventually paying taxes on it. Invest wisely. Its your money, but its better than stuffing it in the mattress.

I remember you telling that story a while back, and I immediately looked them up and the rates weren’t good at that moment. Maybe I wasn’t looking at the right thing though.