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This Year’s Savings Deals We Can Be Thankful For


I want to wish everyone a happy and healthy Thanksgiving. Thanks for all of your support this year.

It’s sort of my blog tradition for Thanksgiving to look back at some of the bank deals this year that we can be thankful for. As you might expect, I’m going to have to keep this post short.

Deposit rates are starting to rise, but unfortunately, inflation is rising faster. One savings product that’s tied to inflation is the Series I Savings Bond (I Bond), and that is the one good deal I want to remind everyone of today. The I Bond fixed rate is zero, so an I Bond purchased today won’t put you ahead of inflation, but at least you’ll keep up with inflation. For a savings product with no principal risk, that is very nice.

As I reported on November 1st, new I Bond purchases made through April 2022 will have six months with a 7.12% interest rate. The interest rate for the next six months (that will be announced on May 2, 2022) will depend on CPI numbers from October 2021 through March 2022.

Those who still have I Bonds that were purchased in the past will get six months of this new inflation rate. The start of this six-month period depends on when you purchased the I Bond. An I Bond's new inflation rate takes effect every six months after its issue month. If your old I Bond has a high fixed rate, you should be thankful. Those who purchased I Bonds from September 1998 through October 2001 have a fixed rate that ranges from 3.00% to 3.60%. Those I Bonds will have a composite rate for six months that ranges from 10.23% to 10.85%.

The primary downside of I Bonds is the purchase limit. The maximum that an individual can purchase per year is $10,000 at TreasuryDirect and $5,000 in paper bonds purchased with an IRS tax refund (There are ways to buy more I Bonds. Harry Sit of The Finance Buff has a useful review of how a married couple could buy up to $65,000 in I Bonds in one calendar year by using business accounts and trust accounts.)

Don’t forget that the I Bond purchase limit is per calendar year. So if you haven’t maxed out on I Bonds for 2021, it makes sense to max out before December ends. You can then buy more in January.

Thankful and Hopeful

Inflation may be high and deposit rates low, but these conditions won’t last forever. Let’s hope for better days for the economy and for savers in the future. May you and your family have a safe, healthy and joyous holiday season.

Related Pages: nationwide deals
  |     |   Comment #1
Happy Thanksgiving Ken to you and all your readers. It has been along year with this virus but maybe everyone will get vaccinated and all will soon be well for our kids and everyone else.
Thank you for all you do for all of us for so many years. You have taught us a lot of things about our money and how to make it work for us.
Have a wonderful joyful day with your family and friends. We all have a lot to be thankful for.
  |     |   Comment #2
A very happy Thanksgiving to you too. Your website is certainly one I am very thankful to have access to, as a senior who wants a safe place for her savings where one can actually earn some interest.
  |     |   Comment #3
A happy Thanksgiving to each and everyone. And to Ken: DA.com is still my goto site for my deposit account information, thank you and please keep up the good work.
  |     |   Comment #5
Ken: I wish you and your family a peaceful Thanksgiving. While we may not have interest rates for which to be thankful; I think I speak for all Deposit Account readers in expressing thanks and appreciation for your excellent and dedicated work throughout the year.
  |     |   Comment #6
Also want to add my voice to express my thanks and best wishes for Thanksgiving and the holidays to Ken, the DA staff and DA readers. This is an outstanding site with some very helpful and lucrative information. I have profited from information I have learned here over these past years and I am thankful for all the great effort that goes into creating this gem. And last but not least my apologies to the moderator(s) -- whether Ken or others -- for any past (or future :) transgressions. It is never intentional... well maybe one time it was but he deserved it! :D

  |     |   Comment #10
Happy Thanksgiving, PD.

You may very well wear a tinfoil hat "in person" like you do on the blog here, but I always make the assumption posters MAY be merely role playing in some respects for theatrical effect, which allows the unknown to mitigate my real inner reactions.
  |     |   Comment #7
Happy Thanksgiving to you and your family, Ken!

Whenever I learn of bank bonus deals elsewhere, I would come to DA to review your intelligence on the FI before proceeding. You have helped immensely so thank you and your staff for that.

Take good care and count your blessings, fellow readers. The simple fact that I am able to read and post here is one of the things I’m thankful for.
  |     |   Comment #8
Well we could probably live without money but it wouldn't be ideal or comfortable. No doubt the same is true with depositaccounts.com. Thank you for giving us something to be thankful for.
  |     |   Comment #11
I'm considering a $10K I Bond investment before the end of November. Should I do so will the current 7.12% interest rate be paid for a full 6 months subsequently, or only until May 2nd, 2022?
  |     |   Comment #14
Should you get your purchase in before the end of this month, it will receive 7.12% APY (accruing approximately $59/month, not compounded) for your first six months: Nov-Dec-Jan-Feb-Mar-Apr.
Note that you receive full interest for the entire month of November, as your first month, even though your purchase was made toward the end of the month.

After six months your iBond will compound to a higher principal (approximately $10,356) on which, for the following six months, will receive the new rate that is announced for May.

Another $10k purchase made at the end of January will similarly receive six months of 7.12% APY interest for Jan-Feb-Mar-Apr-May-Jun, and then, beginning in July, receive the next interest rate announced and established in May, for its own next six months (Jul-Aug-Sep-Oct-Nov-Dec). So it will in effect be two months behind your Nov iBond, but it will be receiving the same equivalent yield for its own six-month periods. Just offset by two months.
  |     |   Comment #16
Thank you very much for explaining that.

I assume the day I initiate a purchase from my TreasuryDirect account (which will be tomorrow) becomes the day of record (that is, the bonds will be considered purchased on that day) rather than when the ACH payment is actually received, correct (if you know)?
  |     |   Comment #17
I believe Harry states the day of record will typically be the next business day, if there are no delays, thus to be safe should be initiated a week before the end of the month.
  |     |   Comment #19
As long as the U.S. Treasury receives your purchase before the end of November, you will earn interest for the full month of November, This is one of the many unique features of these bonds - interest is earned for the entire month of purchase, regardless of the actual date of purchase. By purchasing now, you also set the stage to reduce the penalty if you redeem before holding for 5 years - the loss of the last three months of interest earned.
  |     |   Comment #20
I echo what Bernard posted…end of month is busy for Treasury and mere receipt (see your TD account for details) results in a minimum of purchase being posted/consummated on next business day
  |     |   Comment #18
I'm sorry I missed this email Ken, but I hope you and yours as well as all members here had a Peaceful and Beautiful Thanksgiving Day. My thanks is for Deposit Accounts which you, Ken, created and managed so devotedly and intelligently so that many people could act more wisely in their financial affairs. Here's my Thanksgiving: Ken, THANK YOU for all your special help through many years! :o)
  |     |   Comment #21
I would like to thank Ken for all the great offers he finds for us but mostly I would like to thank myself for buying CDs when there were add ons and term CDs at 3% to 4% and ignoring the people that were saying not to buy them because rates were going higher...;)
  |     |   Comment #22
I just want to thank ken for another good yr of great information on cds and everything... Thank Ken
  |     |   Comment #23
Happy Thanksgiving to Ken and the readers. Thank you for all the great information on banks and rates through the year. It is really a one stop for up to date information.
So thanks again for this great website.
  |     |   Comment #24
Thanks Ken for trudging through this low rate environment and for all the updates. Hopefully better days are ahead in 2022!
  |     |   Comment #25
"Trudging" must be right, Robb. One has to admire (and even be a bit bemused by) Ken's sheer doggedness in writing up seemingly endless 1% (or less) CD offers that no one here is likely reading the text of, let alone depositing funds into.
  |     |   Comment #28
grabbed the I-bond deal , will do another one end of Jan. Been enjoying my add ons. Thanks Ken , you've been dumping cash into my pocket for about 15 years now. I go clear back to the halcyon days when Pentagon and Agricultural were paying in excess of 6%.and some though it was a nigerian investment scam .
  |     |   Comment #29
Same here, made sure to get the last of my allowed 10k of electronic I-bonds before the end of Nov. I'll wait till April to decide on when to purchase next year's 10k. If it looks like the rate will go down in May, I'll probably buy some before the end of April to lock in the current higher rate for 6 months, otherwise I'll wait till end of May to purchase some more to get the new higher rate. And then do the same calculus in Oct for the rest of my yearly allotment.

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