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Old 09-17-2011, 01:08 AM   #21
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It's some kind of security mechanism. It took about 10 days for me to get it. I haven't used it yet, but will next week to capture this months interest.

OK, thank you! It sounds like it doesn't take long to get it.
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Old 09-21-2011, 04:21 PM   #22
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According to the Fed., inflation will rise slowly. I went to the site someone referred us to and it says you keep the same rate for the life of the bond. So, wouldn't it be better to wait until November? I'm thinking of getting some too. I just don't like the idea of purchasing them electronically.

Fixed Rate:
  • Announced each May and November
  • Applies to all bonds issued during the six months period beginning with the announcement date.
  • Remains the same for the life of the bond
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Old 09-21-2011, 04:36 PM   #23
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Originally Posted by heirloom
According to the Fed., inflation will rise slowly. I went to the site someone referred us to and it says you keep the same rate for the life of the bond. So, wouldn't it be better to wait until November? I'm thinking of getting some too. I just don't like the idea of purchasing them electronically.

Fixed Rate:
[*]Announced each May and November[*]Applies to all bonds issued during the six months period beginning with the announcement date.[*]Remains the same for the life of the bond[*]
No, that's not correct. The fixed part is for the life of the loan. The trouble is the fixed part is set at 0%. The only interest you will accrue from the bond is the inflation rate which is adjusted 2 x a year. If you buy before end of October you are guaranteed the 4.6 % for 6months. In November they will tell you what your rate is for the following 6 months. I wish I could lock it in for 4.6% for life of bond. Heck, I might even get married to get another $10,000 worth..... UH on second thought maybe it's not worth the $10k...
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Old 09-21-2011, 05:00 PM   #24
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Heck, I might even get married to get another $10,000 worth..... .
Forgive my curiosity, but have you gotten any interesting offers??
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Old 09-21-2011, 05:17 PM   #25
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Two questions:

Are you absolutely sure you can purchase both online and through the bank this year?

2. Can you purchase them by withdrawling from a severance check? I get taxed on them like they are 'normal' income. So I wonder if I can purchase I bonds by withdrawling from them, plus purchasing from my bank.
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Old 09-21-2011, 08:16 PM   #26
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Forgive my curiosity, but have you gotten any interesting offers??
I would have to question my GF's intelligence if she would consider such an offer from me
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Old 09-21-2011, 08:28 PM   #27
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Originally Posted by heirloom
Two questions:

Are you absolutely sure you can purchase both online and through the bank this year?

2. Can you purchase them by withdrawling from a severance check? I get taxed on them like they are 'normal' income. So I wonder if I can purchase I bonds by withdrawling from them, plus purchasing from my bank.
100% certain you can buy $5000 online and $5000 from practically any bank. Banks can't sell them after Dec. 31st. Make sure they sell you I Bonds and not EE. You may get a teller who isn't the sharpest tool in the shed as I had to explain them to her. I'm not following what the significance of the severance check is. You can't buy the bond as a tax deferred retirement tool such as an IRA from treasury direct. I'm not sure about that with the bank, though. When you buy the I Bond the interest is taxed deferred until you cash it in. The interest is state income tax free if your state has an income tax. The interest from the bond is treated as normal income as a CD would.
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Old 09-21-2011, 09:11 PM   #28
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The 5K limit on I bonds is so silly. Why do the bankers get such great deals from the Feds, while little guys are limited to such a puny amount of money?
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Old 09-21-2011, 09:26 PM   #29
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The 5K limit on I bonds is so silly. Why do the bankers get such great deals from the Feds, while little guys are limited to such a puny amount of money?
I've done some reading on this about I Bonds. In the not too distant past you could buy $30,000 a year. Seems the government only wants the small players (like me) to buy these, and the big players to buy TIPS, etc. At one time you could actually buy I Bonds with a credit card. Up until this year you could also buy dollar coins from treasury at face value and they would pay the shipping. Too bad it still isn't allowed, a person could have made some excellent income having a high max credit card 5% cash back, and just constantly buying I bonds and dollar coins and dumping the coins off at the bank each month!
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Old 10-20-2011, 11:27 AM   #30
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Got the bank portion of the I-Bond purchase done today..5k for me -5K for DW.

Unfortunately, the 5K I had planned to buy through Treasury Direct will not happen before November 1. When I dusted off the cobwebs on the account, I discovered the bank we had on file was one from our former location. Long since been closed. (the account)
So I'll just enter one of our current banks and we'll be good--right? Nope, wrong. To accomplish a change of bank one must download a form, complete said form, take form to bank in person to gather verification signature, followed by mailing to Treasury, and lastly, allowing two weeks to process....Oh well, my fault for not taking an occasional peak at those little used accounts.
So, I've set the alarm for late April to look at the May 1 rate. Perhaps a chance to try again..
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Old 10-20-2011, 01:10 PM   #31
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Originally Posted by JPatrick
Got the bank portion of the I-Bond purchase done today..5k for me -5K for DW.

Unfortunately, the 5K I had planned to buy through Treasury Direct will not happen before November 1. When I dusted off the cobwebs on the account, I discovered the bank we had on file was one from our former location. Long since been closed. (the account)
So I'll just enter one of our current banks and we'll be good--right? Nope, wrong. To accomplish a change of bank one must download a form, complete said form, take form to bank in person to gather verification signature, followed by mailing to Treasury, and lastly, allowing two weeks to process....Oh well, my fault for not taking an occasional peak at those little used accounts.
So, I've set the alarm for late April to look at the May 1 rate. Perhaps a chance to try again..
You couldn't just open up a new account? Reason why I say this, is that I got mine set up and wired money in it within 6 days. The website says 2 weeks but everyone I have read about, including myself got it within a week. You could still get it in before the close of the 31st.
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Old 10-20-2011, 01:12 PM   #32
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Got the bank portion of the I-Bond purchase done today..5k for me -5K for DW.

Unfortunately, the 5K I had planned to buy through Treasury Direct will not happen before November 1. When I dusted off the cobwebs on the account, I discovered the bank we had on file was one from our former location. Long since been closed. (the account)
So I'll just enter one of our current banks and we'll be good--right? Nope, wrong. To accomplish a change of bank one must download a form, complete said form, take form to bank in person to gather verification signature, followed by mailing to Treasury, and lastly, allowing two weeks to process....Oh well, my fault for not taking an occasional peak at those little used accounts.
So, I've set the alarm for late April to look at the May 1 rate. Perhaps a chance to try again..
I'm in the same boat as you, had to update our bank info and decided to open up a minor account. Interesting that I can immediately add for our minor child with new bank acct info, but we have to wait to change our bank acct before we can buy online. So if anyone is looking to add online and have minors, this is a way to do it without having to wait.
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Old 10-20-2011, 01:12 PM   #33
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Why not just purchase the 5K from TD when your bank account is taken care of? This way you can puchase 10K this yr and purchase 5K in April.

I'm just trying to understand your theory. Is it only because your not sure what inflation will be next Nov.? I was thinking of purchasing from the bank this month and from TD next month. I'll still get the 6.6% inflation rate....right?
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Old 10-20-2011, 01:24 PM   #34
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Originally Posted by heirloom
Why not just purchase the 5K from TD when your bank account is taken care of? This way you can puchase 10K this yr and purchase 5K in April.

I'm just trying to understand your theory. Is it only because your not sure what inflation will be next Nov.? I was thinking of purchasing from the bank this month and from TD next month. I'll still get the 6.6% inflation rate....right?
No one without a fixed rate floor bought years ago is getting 6.6%. If you buy before the close of the 31st this month, you get 4.6% for six months, then 3.06% the following 6 months. If you purchase Nov.1 you get 3.06% for six months , then a new rate determined May 1st for the following 6. To maximize your interest rate you need to get the bonds purchased this month, or you lose the 4.6% opportunity.
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Old 10-20-2011, 04:39 PM   #35
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No one without a fixed rate floor bought years ago is getting 6.6%. If you buy before the close of the 31st this month, you get 4.6% for six months, then 3.06% the following 6 months. If you purchase Nov.1 you get 3.06% for six months , then a new rate determined May 1st for the following 6. To maximize your interest rate you need to get the bonds purchased this month, or you lose the 4.6% opportunity.
Yup, if you miss out this month, then you are guessing about the May2012 reset. Certainly possible they could toss out another 0%.
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Old 10-20-2011, 04:40 PM   #36
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You couldn't just open up a new account? Reason why I say this, is that I got mine set up and wired money in it within 6 days. The website says 2 weeks but everyone I have read about, including myself got it within a week. You could still get it in before the close of the 31st.
I guess it's worth a try..Thanks
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Old 10-20-2011, 04:54 PM   #37
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Yup, if you miss out this month, then you are guessing about the May2012 reset. Certainly possible they could toss out another 0%.
They should be setting rates according to inflation, but may well keep the fixed portion at zero.

News this week is a big jump in the inflation rate in the UK as measured by CPI. Not saying that inflation is going to kick up here in the US, just that I-Bond variable rates are linked to US inflation.

BBC News - UK CPI inflation rate rises to 5.2% in September

Quote:
The 5.2% rate is the highest CPI measure since September 2008, and it has never been higher since the CPI measure was introduced in 1997.
The Retail Prices Index (RPI) - which includes mortgage interest payments - rose to 5.6% from 5.2%.
The latest RPI measure is the highest annual rate since June 1991.
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Old 10-20-2011, 05:25 PM   #38
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Went to the Treasury Direct website to open an account. Got this message:
"TreasuryDirect: Changes Coming Soon!

Important Notice: To make our customers' experience better, we're updating TreasuryDirect's authentication process. The change will make it easier for you to access your new account.
If you open an account now, we'll send you an access card in about two weeks which you'll use to login. The access card will soon be phased out, so it will only be needed for a short period of time.
The new process replaces the access card with an equally secure method of logging in. So, you may wish to delay opening your account until the new process is in place on or about November 4, 2011."

Looks to me like getting in this quarter will not happen so might has well wait until next when they have their "new-improved" version up.
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Old 10-20-2011, 05:41 PM   #39
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Originally Posted by nwsteve
Went to the Treasury Direct website to open an account. Got this message:
"TreasuryDirect: Changes Coming Soon!

Important Notice: To make our customers' experience better, we're updating TreasuryDirect's authentication process. The change will make it easier for you to access your new account.
If you open an account now, we'll send you an access card in about two weeks which you'll use to login. The access card will soon be phased out, so it will only be needed for a short period of time.
The new process replaces the access card with an equally secure method of logging in. So, you may wish to delay opening your account until the new process is in place on or about November 4, 2011."

Looks to me like getting in this quarter will not happen so might has well wait until next when they have their "new-improved" version up.
Nwsteve
If you don't want to mess with it I understand, but the two week process to get your access card has always been on the site. Like I said it only took 6 days, and all the people on fat wallet said they got theirs within a week. The process is easy. I don't even have online banking and use checks to pay my bills, but I bet it didn't take me 10 minutes to get the bonds bought once I got the access card.
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Old 10-23-2011, 02:13 PM   #40
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Quote:
Originally Posted by nwsteve
Went to the Treasury Direct website to open an account. Got this message:
"TreasuryDirect: Changes Coming Soon!

Important Notice: To make our customers' experience better, we're updating TreasuryDirect's authentication process. The change will make it easier for you to access your new account.
If you open an account now, we'll send you an access card in about two weeks which you'll use to login. The access card will soon be phased out, so it will only be needed for a short period of time.
The new process replaces the access card with an equally secure method of logging in. So, you may wish to delay opening your account until the new process is in place on or about November 4, 2011."

Looks to me like getting in this quarter will not happen so might has well wait until next when they have their "new-improved" version up.
Nwsteve
Steve - I had a friend who filled out TD account info wednesday, and got his card Saturday, and will deposit the money, Monday. So you still may have time to get it done before the 31st if you choose to.
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