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Re: I-bond rate for May 1st
Old 05-03-2007, 07:37 AM   #21
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Re: I-bond rate for May 1st

I'm confused . Hope someone has the time to answer this question..
What interest rate will these bonds earn for May thru October 2007
purchase date : 04/2003 and 10/2003 and 05/2005... I contacted Tres.Gov
and there explanation confused all the more. Thanks for your help ...would
it be better to cash these in and get some 5.25% cds and, cash in now or wait
for 3 months...
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Re: I-bond rate for May 1st
Old 05-03-2007, 07:52 AM   #22
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Re: I-bond rate for May 1st

If you haven't used the calculator tool provided by Treasury Direct, I suggest you do so. Can enter your specific bonds and keep track of their growth and specific interest rates for any particular month.

http://www.treasurydirect.gov/indiv/...gsbondcalc.htm
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Re: I-bond rate for May 1st
Old 05-03-2007, 08:08 AM   #23
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Re: I-bond rate for May 1st

Have tried that and still can't figure out the interest rate these bond
earn for the next 6 months, your answer is just like the Treasury Direct
They want you to go to calculators and I struggle with those , so my ? is
the same...what interest will these earn for next 6 months;
04/2003,
10/2003
05/2005
I must be dense ... but I need a point blank % answer.
Thanks again
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Re: I-bond rate for May 1st
Old 05-03-2007, 08:16 AM   #24
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Re: I-bond rate for May 1st

Ok. I used the link above and calculated rates for 04/2003. I was wrong about April issues picking up new rate in November; it's October.

May-Sep 4.72%
Oct-Nov 4.04%
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Re: I-bond rate for May 1st
Old 05-03-2007, 08:22 AM   #25
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Re: I-bond rate for May 1st

Further for RJK - other bonds:

10/2003
May-Sep 4.22%
Oct-Nov 3.53%

05/2005
May-Oct 3.63%
Nov N/A because this bond was issued the first month of a cycle and Nov rates are not yet announced
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Re: I-bond rate for May 1st
Old 05-03-2007, 08:43 AM   #26
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Re: I-bond rate for May 1st

Yea, I think I have it figured out, if I simply go to the calculator
the first of each month it will show the % being earned for that month
on the bonds, as the % will change depending on issue date of ea. bond.
Man, I know its early but I need a beer after this process..
Thanks for the help...I'll send you a beer flavored e-mail..rjk
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Re: I-bond rate for May 1st
Old 05-03-2007, 09:44 AM   #27
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Re: I-bond rate for May 1st

IF, I ever figure it out,---I'll e-mail ya'll a case !
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Re: I-bond rate for May 1st
Old 05-04-2007, 09:24 AM   #28
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Re: I-bond rate for May 1st

Ok guys. It's Friday and I'm thinking about beer! May not be worth a brew, but thought it could be useful to talk about the rationale behind when an individual I Bond starts applying changed rates.

Basically, Treasury is telling you that you will get a full 6 months of the rate you purchase at, AND you will get a full 6 months of all inflation adjustments. To do this each bond must apply future changes on it's own schedule rather than May-Nov when adjustments are announced.
If you buy a bond in May, you will get recently announced rates and will have your rates change in November when new rates come out. But what if you buy in June? To get a whole 6 months, you must have current rates paid June-November. You will begin the November announced inflation adjustment in December. If you buy a bond in October, you will receive current rates October-March, and won't begin getting the November announced inflation rate until next April!
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Re: I-bond rate for May 1st
Old 05-04-2007, 10:02 AM   #29
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Re: I-bond rate for May 1st

One last ...Need some thinking on cashing in 20k worth of
I-bond purchased 11/2004 ...Would lose 3 months interest @
4.12 and tax break but would roll $$$ into FNBO savings acct.
earning 6% thru 9/28.... getting the feeling that these I -bonds
are not the best avenue for me to continue in...What do ya think
RJK
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Re: I-bond rate for May 1st
Old 05-04-2007, 04:47 PM   #30
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Re: I-bond rate for May 1st

After further thought and attempting to study some tax effects
have decided to sit on these bad boys for @ least 3 months and
then look at cashing in, so as to eat a lower 3 month loss....3.43%
vs. 4.12%...a small amount but you know how it all adds up. Have
some cd's maturing mid may to roll into the FNBO 6% acct...Thanks
for the help on this, as I-bonds were quite confusing to me but with
your help I understand them now.
Consider this another BEER flavored e-mail, that puts me ahead of
you folks and you can send me the real stuff UPS... :P
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Re: I-bond rate for May 1st
Old 05-04-2007, 05:25 PM   #31
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Re: I-bond rate for May 1st

Quote:
Originally Posted by milmoose
I have modest number of Ibonds with a 3.4% or 3.6% real rate. I think I am going to be keeping those for a long time.

You should NEVER, EVER, NEVEREVER sell those bonds. Where else can you a risk-free investment wiht 3.4% real returns?

- M
Well they stop earning interest in 23 more years, so at that point I better reedem them. Also I don't really intend to die super rich so donating them to charity may make sense in the future. But other than that I basically agree with you, especially considering the tax defered benefits.
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