[Egregious]

Buy $10k in Series I Savings Bonds. Purchase before the end of April to lock in the current 7.12% interest rate for the next six months. The rate changes every six months. The next rate update is expected to be at around 7% as well, so you're looking at a virtually guaranteed 7%+ return for little to no risk. This is a US Treasury bond, so it's safely backed by the US government. The minimum holding period is one year, so you can cash out anytime after that.

• Buy near the end of the month and it will still count as if you've held it the entire month (so holding period is virtually eleven months instead of twelve).
  


• You can get a family member to also buy a $10k bond for you as a gift, and deliver next year when the annual limit resets on your own account.
  

https://www.treasurydirect.gov/indiv/res...ibonds.htm

[Egregious]

Treasury site updated, confirming the next six-month rate to be 9.62%. Got $40k locked in at 7.12% for six months and 9.62% for the following six months. It was essentially a no-brainer.

[Yell]

Treasury site updated, confirming the next six-month rate to be 9.62%. Got $40k locked in at 7.12% for six months and 9.62% for the following six months. It was essentially a no-brainer.

Thoughts on still getting in on this? 9.62% guaranteed for 6 months is pretty solid regardless of the next 6.. When is the optimal time i buy in? Should I wait until October you think?

[Egregious]

Thoughts on still getting in on this? 9.62% guaranteed for 6 months is pretty solid regardless of the next 6.. When is the optimal time i buy in? Should I wait until October you think?

Wait until mid-late October to see what the following six-month rate will be. Even if you buy near the end of October, you still get the 9.62% rate locked in for six months, and you'll know more about the next rate change. If the subsequent rate is high enough to your liking, then go for it. One benefit of purchasing at the end of the month is that it still counts as if you've held it the entire month (buying on October 28th counts as if you've held the bonds since October 1st, so you earned an entire month of interest already). Keep in mind that cashing out before five years will incur a penalty (you forfeit the most recent three months of interest).

[Yell]

Wait until mid-late October to see what the following six-month rate will be. Even if you buy near the end of October, you still get the 9.62% rate locked in for six months, and you'll know more about the next rate change. If the subsequent rate is high enough to your liking, then go for it. One benefit of purchasing at the end of the month is that it still counts as if you've held it the entire month (buying on October 28th counts as if you've held the bonds since October 1st, so you earned an entire month of interest already). Keep in mind that cashing out before five years will incur a penalty (you forfeit the most recent three months of interest).

I see. Makes a lot of sense to me. Really good points you made. Thanks for the help.