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Old 04-29-2012, 07:20 AM   #21
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I bought a 2.9%, 8-year CD a couple of weeks ago. Not sure if an I bond is a better choice or not, as I don't know enough about this financial product.
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Originally Posted by Mulligan View Post
Any I Bonds purchased prior to end of month is 3.06% for 6 months before changing to 2.2%. The first 4 months of the cycle had little change, with most of the CPI inflation occurring in the past 2 months.
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Old 04-29-2012, 07:58 AM   #22
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Quote:
Originally Posted by jimbohoward69 View Post
Taken from their website:

"If you redeem I Bonds before they’re five years old, you'll forfeit the three most recent months’ interest; at or after 5-years old, you won’t be penalized."


Individual - I Savings Bonds Rates & Terms
If you think you'll be cashing in prior to the full five year holding period, and may not need the whole 10K at once, consider purchasing I Bonds in smaller denominations. If you buy (5) 2K bonds or (10) 1K bonds, you would only pay the interest penalty on what you need to redeem. If you buy a single 10K bond you're stuck with the penalty on the full amount.
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Old 04-29-2012, 08:49 AM   #23
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Originally Posted by CitizenK View Post
If you think you'll be cashing in prior to the full five year holding period, and may not need the whole 10K at once, consider purchasing I Bonds in smaller denominations. If you buy (5) 2K bonds or (10) 1K bonds, you would only pay the interest penalty on what you need to redeem. If you buy a single 10K bond you're stuck with the penalty on the full amount.
Good point..Might as well have flexibility--It's free..
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Old 04-29-2012, 10:06 AM   #24
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Quote:
Originally Posted by obgyn65
I bought an 2.9%, 8-year CD a couple of weeks ago. Not sure if an I bond is a better choice or not, as I don't know enough about this financial product.
If you made a sizable CD deposit, they probably aren't comparable. Since you can only deposit 10k per year per person ( plus maybe a tax refund of 5k ) your 8 years might be up before you could get all the money into the I Bonds. I would hope inflation doesn't average more than 3% over that time, so they probably will be similar in return, except I Bonds are state income tax exempted and you can delay taxes by holding them 30 years. That is the main reason, I purchase them, along with the fact, that when I deposit money electronically into I Bonds or my Vanguard the money disappears to me so I don't have the itch to go spend it.
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Old 04-29-2012, 05:06 PM   #25
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I saved this article discussing the forms needed to get the I bond using your tax return,IRS form 8888. If you owe, you can still get them using IRS form 4868 and making a payment.

Backdoor to Paper Savings Bonds
A new and interesting hoop to jump through.
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