The I Bond Thread

cyber888 said:
I have a question for you or anyone.

Right now - When I click 'Redemption', I don't see my I Bill under Redemption.

So, the question is, will my iBond only appear under "Redemption" after 12 months ? Essentially, you cannot take anything out in less than 12 months, correct?
Click to expand...

I have not bothered to check on how to cash mine, as I already know I-bonds are not cash-able for 1 yr.
After that for the next 4 years they are cash-able, with a 3 month interest penalty.
After a total of 5 years they are cash-able without penalty.

I do wonder if you read this entire thread, as early on someone posted a link to FAQs:
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ifaq.htm
 
cyber888 said:
Does not answer my question. My question is when my IBond will appear there .. I don't see it.
Click to expand...

I see mine when I log in to the site.
You can follow the links to see each purchased bond in some detail, along with the accumulated/credited interest.

Sometimes when I buy a bond it automatically changes the purchase date to a future date, maybe 1 day ahead or avoids weekends. So I generally check the bond has shown up a day or two after my bank says it sent the money.
 
Sunset said:
I have not bothered to check on how to cash mine, as I already know I-bonds are not cash-able for 1 yr.
After that for the next 4 years they are cash-able, with a 3 month interest penalty.
After a total of 5 years they are cash-able without penalty.

I do wonder if you read this entire thread, as early on someone posted a link to FAQs:
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ifaq.htm
Click to expand...

Thanks! I was just trying to understand how the website works.

As someone who has developed websites before, I would think there would be the link to the ibond in there - but would have a note that it can't be redeemed until a certain date, and that there would be also a button to click for 'special circumstances' to withdraw it like a 'disaster situation', because I read that you can redeem early if you are in a disaster area. Maybe as a web designer, I was just expecting a more user-friendly interface.
 
cyber888 said:
Thanks! I was just trying to understand how the website works.

As someone who has developed websites before, I would think there would be the link to the ibond in there - but would have a note that it can't be redeemed until a certain date, and that there would be also a button to click for 'special circumstances' to withdraw it like a 'disaster situation', because I read that you can redeem early if you are in a disaster area. Maybe as a web designer, I was just expecting a more user-friendly interface.
Click to expand...

I also noticed the website is TERRIBLE , not intuitive and pretty clunky. However it does work and that is the main thing.
I really hate the password login part, and how it's not case-sensitive by design, reducing the complexity of passwords. I'm not even sure that virtual keyboard is better at security than a password field I could paste in my password.
 
cyber888 said:
As someone who has developed websites before, I would think... I was just expecting a more user-friendly interface.
Click to expand...
If you're dissatisfied with the federal government's website you can buy your iBonds from one of their competitors.

Uh huh. They know that too.
 
Sunset said:
I also noticed the website is TERRIBLE , not intuitive and pretty clunky. However it does work and that is the main thing.
I really hate the password login part, and how it's not case-sensitive by design, reducing the complexity of passwords. I'm not even sure that virtual keyboard is better at security than a password field I could paste in my password.
Click to expand...

Yeah, I had to show my DW that virtual keyboard and tell her she can't use a real keyboard.

And sometimes when you press the 'back' button, the website says 'error' and then you are logged out. But I'm getting used to the quirks :) Thanks!
 
londo said:
If you're dissatisfied with the federal government's website you can buy your iBonds from one of their competitors.



Uh huh. They know that too.
Click to expand...



So I just called bond desk to get a bond quote and he thought I said IBond. I told him I already bought those from TD and know that Vanguard cant sell them. He started chuckling a bit. So I asked..”Have the idiots been ringing your phone off the hook asking to buy IBonds?”. So he really starts laughing and said, “You wouldnt believe how many phone calls we are getting on buying those.”.
 
At my last Fidelity tele-meeting my free FA tried to show me where to buy ibonds on Fido’s site. I would have felt bad for him but the real purpose of the call was for him to nudge me towards their paid advisory services.
 
jazz4cash said:
At my last Fidelity tele-meeting my free FA tried to show me where to buy ibonds on Fido’s site. I would have felt bad for him but the real purpose of the call was for him to nudge me towards their paid advisory services.
Click to expand...

He should have told you that you can only buy i-bonds through Treasury Direct!
 
do I bonds you buy today pay the same rate of interest as long as you hold them, plus the inflation rate for each year? interest rate is fixed? inflation rate changes?
 
frank said:
do I bonds you buy today pay the same rate of interest as long as you hold them, plus the inflation rate for each year? interest rate is fixed? inflation rate changes?
Click to expand...
i-bonds that you buy today will pay a fixed rate of 0% plus inflation. Inflation is determined twice a year, in May and November.

I-bonds bought today will pay an annualized rate of 7.12% for the first 6 months, 9.62% for the second 6 months, and the announced rates (inflation +0%) thereafter.

There isn't anything better out there. It is as close to a free lunch as one can get.
 
Gumby said:
Just remember that if you deliver the gift bonds to each other in 2023, you won't also be able to buy bonds for yourselves in 2023 (assuming you bought $10k in gift bonds each)
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We can buy more gift bonds for 2024 delivery if rates are still high.
 
wmc1000 said:
We can buy more gift bonds for 2024 delivery if rates are still high.
Click to expand...

Yes, you could do that. But why would you wait until next year? If you buy gifts to be delivered in 2024 before the end of next week, you will get 7.12% for 6 months, then 9.62% for 6 months, then probably something around 6% for 6 months. Even if it goes to zero after that, and you deliver and cash in on 1/1/24 (and forfeit the last 3 months of interest, which is 0% in this hypothetical), you will have gotten an annual rate of ~6.9% over a 20 month period.
 
Gumby said:
Yes, you could do that. But why would you wait until next year? If you buy gifts to be delivered in 2024 before the end of next week, you will get 7.12% for 6 months, then 9.62% for 6 months, then probably something around 6% for 6 months. Even if it goes to zero after that, and you deliver and cash in on 1/1/24 (and forfeit the last 3 months of interest, which is 0% in this hypothetical), you will have gotten an annual rate of ~6.9% over a 20 month period.
Click to expand...

My risk aversion is what keeps us waiting until 1-1-23 to do that even though I would be giving up the current higher rates.

Additionally. at this point we would have to sell other investments to get the $20K for 2024 since we just bought $40k over the last 2 weeks.
 
wmc1000 said:
...
Additionally. at this point we would have to sell other investments to get the $20K for 2024 since we just bought $40k over the last 2 weeks.
Click to expand...

Well that's another kettle of fish entirely. We have been using cash that was earning essentially nothing, so we have already bought gifts for each other to be delivered through 2025.
 
Gumby said:
Well that's another kettle of fish entirely. We have been using cash that was earning essentially nothing, so we have already bought gifts for each other to be delivered through 2025.
Click to expand...

That makes a lot of sense. We currently sit with about $20K that currently is earning .50% but even with our WR of 0% we sleep well at night knowing we have a cushion for most unforeseen short term events.
 
Could I give my daughter who has a TD account $10K to gift me for next year and if I can get this done immediately I can grab 7.12% for 6 months followed by the new May rate for 6 months and hopefully an even higher rate in November? Am I correct in thinking that 10K plus all that interest drops into my account 1st of next year? Her last bond purchase was last year and they don't plan to add any at least for now, baby on the way.
Can anyone else gift me, for example my son if he sets up a TD account as well?
EDIT
Okay I read up a little more on this. Maybe it would be smarter to leave it in the gift box as long as rates stay higher. I could then make my own 10K deposit more each year while the money stays in the gift box earning interest and counting down the 5 year clock.
Can someone confirm I'm understanding this correctly.
Thanks
 
Last edited:
I don't suppose Treasury has any way to trace the source of funds used to purchase a gift, so it probably would work. However, as I understand it, the gift is delivered when the giver chooses. Maybe your kids will deliver the gift to you on 1/1/23, maybe not. Additionally, you can't have more than $10k (original principal) of gifts delivered to you in a single calendar year, so you couldn't do that with both children at the same time. Finally, if one of them delivers a gift to you in 2023, you won't be able to also buy more for yourself that year.
 
Thanks for the response, I watched the treasury videos and I think I understand the whole process now.
I think I will ask her to hold onto the gift until we see a rates reversal and that way I can continue to buy 10k for myself if I want. I will also make her the beneficiary just in case something happens to me.
 
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