I-bond rate for May 1st

[rjk514]

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

 

[Sundance Kid]

IF, I ever figure it out,---I'll e-mail ya'll a case !

 

[WilliamG]

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!

 

[rjk514]

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

 

[rjk514]

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...

 

[clifp]

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.