wanaberetiree
Full time employment: Posting here.
- Joined
- Apr 20, 2010
- Messages
- 718
I am just wondering if there are any I-Bonds owners here and how they keep I-Bonds - as paper or in TreasureDirect?
I have my I-bonds electronic only.
My I-Bonds are all through Treasury Direct
Did you convert?
I've been buying small quantities of Savings Bonds by payroll deduction for years. I get the paper bonds in the mail and keep them in my safe deposit box. But the payroll deduction plan is being phased out. I don't know if I will buy more Savings bonds or just invest the money elsewhere. A new baby relative arrived last spring—maybe I will start a 529 for him instead of the bonds.I am just wondering if there are any I-Bonds owners here and how they keep I-Bonds - as paper or in TreasureDirect?
The Internet reference expert on this subject is Mel Lindauer over at the Bogleheads. I'd read the Bogleheads Wiki on the subject before posting, but they may be able to help you with that partial-redemption question.Thank you all!
I have all I-bonds in paper in my deposit box and still not sure if I should convert.
One thing that makes it unconformable is the fact that Treasury Direct does work with s/w like Quicken.
another question - if I convert a paper $30K bound, will I be able to sell it in smaller parts, say $5K x 6 ?
Yeah, I like that idea too, but that's not shared by Bankoh or First Hawaiian or CPB or even NFCU...Maybe someone knows - my understanding is that I can cash the bonds at any bank which is a part of the FED system. Been 7 years since I bought mine, but I was thinking that was why I chose to keep the bonds in paper. I liked the idea of walking into a bank with a stack of bonds and walking out with a stack of currency, a counter check or a notation in my check book as to the new (and check-writeable) balance.
Yeah, I like that idea too, but that's not shared by Bankoh or First Hawaiian or CPB or even NFCU...
Call a bank that you have an account with and see what they can do with you. Then for a look at the other side, call a bank where you don't have an account and see how negotiable those bonds really are.
Suddenly the process of electronic conversion via TreasuryDirect is simple and faster.
Maybe someone knows - my understanding is that I can cash the bonds at any bank which is a part of the FED system. Been 7 years since I bought mine, but I was thinking that was why I chose to keep the bonds in paper. I liked the idea of walking into a bank with a stack of bonds and walking out with a stack of currency, a counter check or a notation in my check book as to the new (and check-writeable) balance.
I'm sure it's easy to use the electronic system too. It's just that I'm a luddite (or dinosaur) and prefer the pieces of paper. Other than fire or theft, is there any major disadvantage to keeping paper? (sounds like there could be a disadvantage to electronic - if they are lost - How do you lose an electronic bond)
I don't think the banks or credit unions get anything for the burden, and technically they don't refuse to cash them. They just make it such a bureaucratically miserable experience that you'll give up.Thanks. I guess you've answered my question. At least, theoretically, I can cash them at a bank. It might be best to be MY bank - not a problem.
I would guess that a threat to call the FED or Treasury with a complaint would bring most banks around, but I could be wrong. Again, a 7 year old memory, but I think i was told they were redeemable at ANY FED bank - not just one with an account. Still, since I've had an ASB account as long as I've had the bonds, I'm guessing it will not be a problem - especially since I'd likely deposit them to my CO instead of actually take the cash.
I know, I know - YMMV
My only option was Treasury Direct for I bonds I bought in the 2004-05 timeframe.
Someone correct me if I am mistaken.
Maximum purchase
(per calendar year):$5,000 in TreasuryDirect and $5,000 in paper bondsDenominations:Paper bonds: $50, $75, $100, $200, $500, $1,000, and $5,000
Electronic bonds via TreasuryDirect: purchase to the penny for $25 or more
If you redeem a savings bond that you own on Treasury Direct, how do you get the money? Is it an electronic funds transfer into your bank account, or what?