# Savings bonds



## Capt Lightning (Dec 13, 2022)

I'm not sure about savings in other countries, but at last savings rates have risen in the UK from 'laughable' to 'pathetic', which is a big step up for us Brits.
This is not good news for people with mortgages etc.. but for the first time in years we are able to get some sort of return on savings.
Mrs.L and I have taken a mixture of ISA's and fixed term bonds from one of the big 'High street' banks in the UK.
(ISA's are tax free savings with a max of £20k per year invested, and penalties (or reduced interest) for early withdrawal.)   
Interest on the bonds is taxable if interest from all savings is over £1k per year.  (This is where ISA's are handy)

What are conditions for savings like in other countries?


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## JustDave (Dec 13, 2022)

Bond returns are up.  I have a small savings account for no other purpose than to keep track of specific thing.  It pays less than a half of a percent.  I won't keep more than $1000 dollars in it. Every month it earns 1 penny in interest.


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## Georgiagranny (Dec 13, 2022)

JustDave said:


> Every month it earns 1 penny in interest.


Wow. That much?


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## JustDave (Dec 13, 2022)

Georgiagranny said:


> Wow. That much?


Yeah.  Makes me just want to sit back and gloat over my money.  And it's been paying that month after month since I opened the account two years ago.


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## Myquest55 (Dec 14, 2022)

I used to love government savings bonds.  They made great gifts.  But, now they have made it so horribly difficult to purchase them and everything is online!  I am disappointed that we can no longer purchase them at a bank and give a hard copy as a gift in a card.  I don't care how much interest they pay out - I am not jumping through impossible hoops to purchase air. 

As for municipal and corporate bonds - they just had the worst year ever.  I inherited a few and am slowly cashing them out as they come due.  Besides those, I previously found several annuities with Prudential that have a lock in whenever the market rises.  Thus, our savings have risen, even in the "down market."  (I know, annuities are evil BUT for me, they pay out regularly for the rest of my life and continue to earn interest.  We haven't had to activate one yet)


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## Chet (Dec 14, 2022)

I have a good amount of paper U.S. Savings bonds which I'm cashing a little at a time.  Some go back to 1985 and don't draw interest anymore after 30 years. My state has a real estate rebate plan based on income, so I try to cash whatever keeps me from getting less rebate. When I bought them they were sold at a guaranteed minimum interest of 4% for EE bonds up to the 30 year maturity date which I'm getting now. I have some I bonds too whose interest is partially determined by inflation. The last time I checked it was 8.3%. Banks are a fraction of 1%. I just bought a 15 month CD getting 2.4%


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## Packerjohn (Dec 14, 2022)

You just can't win anymore!  With inflation running at 8% and savings at 2%, you are 6% poorer.

I'm from Canada and our whole economy is geared to spend and spend and spend.  A lot of people are in the BIG BROWN stuff having huge mortgages they can't afford and many are maxed out on all their credit cards.

The recession is coming (some say it's already here).  Some will lose their homes and some will have to declare bankruptcy.  

I wish I could paint a rosy picture of our economy but then I don't have my head in the sand like that proverbial ostrich or those "hear no evil, see no evil, speak no evil" monkeys.


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## John cycling (Dec 14, 2022)

I got a Capital One 3.3% high interest savings account (HISA) plus a $1000 bonus about a month ago.  
That's the first time I've done that, and now I'm looking for another one. Here's a link that shows a few. <--


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## Liberty (Dec 15, 2022)

Discover card now has a 4 + % CD offer out.  A good place to also buy D's is at Schwab or another good brokerage house.  Try not to get  a "call able " one...especially if its a year or more.


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## Tom52 (Dec 15, 2022)

In the USA 3 month Treasury bills are paying 4.26% and the 6 month treasury bill is currently paying 4.54%.  I have a bunch of I Bonds purchased over the years that are currently paying in the 7% to 11% range.

Unfortunately, these rates are short term. Longer term rates have an inverted yield curve so, currently, longer-term Treasury notes and bills are only available at lower rates.  Good news is the Fed is expected to continue raising/holding these short term rates thru 2023.  Of course this Fed policy is not good for the overall market and a recession is very possible.  But it is good for savers.

I am currently earning about $3,500/month interest from my I bonds and Treasury notes. A year ago I was only earning 1/4 that amount.

Current 12 month CD rates are in the 4.15% range, so short term Treasuries are the way to go, especially while the Fed continues to raise rates the next few months.


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## HarryHawk (Dec 15, 2022)

I recently started buying U.S. t-bills.  Once you set up your account, they are easy to purchase from the comfort of your living room.


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## OneEyedDiva (Dec 15, 2022)

Part of my mother and father's savings was via U.S. savings bonds. I went that route for awhile too but after accepting Islam about 30 years ago and finding out that Muslims should not collect, pay or charge interest, I cashed them in and donated the interest. @Packerjohn Savings accounts have almost always operated at a loss vs inflation. But I do remember several decades ago, I bought a CD from a little savings and loan bank that was paying a little more than 14% interest.  Even with the fed continuing to raise rates, I don't think people will ever see that rate again.


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## Brookswood (Dec 16, 2022)

Chet said:


> I have some I bonds too whose interest is partially determined by inflation. The last time I checked it was 8.3%. Banks are a fraction of 1%. I just bought a 15 month CD getting 2.4%


AHHHHHH!!!!!!!   2.4% for a 15 month CD.    You are getting ripped off! Big time ripped off!!!
It pains me to even read  about it. 

Ally bank pays 4.25% for an 18 month CD, FDIC insured just like all good banks. Let's do the math 4.25  - 2.4 = 1.85.  So, for every thousand dollars in the 2.4% CD you are losing $18.50 every year. Ugh!   That's an extra $185 every year on a $10,000 CD with no risk.   Toss that tightfisted banker under the bus and start  keeping the difference for yourself.


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