The I Bond Thread

[cj1717]

Just checked out of curiosity. I have some I bought in 2001 that are paying 10.23%.

 

[Magus]

Hi all - interesting thread, unfortunately I'm new on this topic and got to this thread late (yesterday, 4/28 at 10:45pm central time).

It looks like my purchase went through, but my gift purchases appear to show status of "Purchase Requested" with a date of 4/29. I know I submitted before midnight my local time, but guessing Treasury Direct uses Eastern time.

What happens now? Will my Gift Purchases be effective on Monday, 5/2? If so, what rate will it be as a gift in about 5 days or 1/1/2023?

Thanks for sharing your knowledge.

Can’t answer the first part but if it’s effective 5/2 it’ll be 9.62% for 6 months then whatever the new rate in Nov is for 6 months. You’ll have missed the 7.12% for 6 months but I am guessing the next reset at least wk be pretty decent

 

[Sunset]

I got our tiny IRS refund deposited to the bank account yesterday, so now I wonder if the $5K in I-bonds will be dated this month

I made our tax return refund $5,009.00 , so that $5,000 would be in I-bonds and $9.00 would go to the bank account, thereby letting me know when the return had processed.

Now we have something to look forward to in the mailbox over the next week or two

 

[bobbyr]

I made our tax return refund $5,009.00 , so that $5,000 would be in I-bonds and $9.00 would go to the bank account, thereby letting me know when the return had processed.

I like that approach of the $9 to alert to the processing

 

[pb4uski]

My aunt and uncle set up TD accounts but TD wouldn't work with their Navy Federal bank account so they had to do paperwork to set up another bank account with TD and they just mailed it our on Friday.

Since they wanted the 7.12%, I agreed to buy them gifts and deliver them to them and they will reimburse me. At the end of the day it is the same as if they bought them in their own accounts and took the money out of their checking account.

I made the gift purchases last night and saw that the withdrawals hit my bank today. Logged onto TD and they show in my gft box.

When I tried to deliver them to their TD accounts I got an error message that they need to sit in the gift box for 5 business days before they can be delivered so I'll have to wait until next week to re-try delivering them.

Put that in the "learn something new every day" category.

 

[Jerry1]

Yes, but it still seems that you locked in the current rate. Good going.

 

[Dash man]

If you go in today, it’ll give you a purchase date of Monday, May 2. I took a look, but wasn’t going to buy anything. Just curious.

 

[jj]

My aunt and uncle set up TD accounts but TD wouldn't work with their Navy Federal bank account so they had to do paperwork to set up another bank account with TD and they just mailed it our on Friday.

Since they wanted the 7.12%, I agreed to buy them gifts and deliver them to them and they will reimburse me. At the end of the day it is the same as if they bought them in their own accounts and took the money out of their checking account.

I made the gift purchases last night and saw that the withdrawals hit my bank today. Logged onto TD and they show in my gft box.

When I tried to deliver them to their TD accounts I got an error message that they need to sit in the gift box for 5 business days before they can be delivered so I'll have to wait until next week to re-try delivering them.

Put that in the "learn something new every day" category.

I did read somewhere on the site that gift bonds have to sit for 5 days before they can be delivered. Something about ensuring that the payment has cleared.

 

[jazz4cash]

I’m curious why the NFCU account doesn’t work.

 

[Dash man]

I’m curious why the NFCU account doesn’t work.

NFCU only allows transfers from their checking accounts. Perhaps they were attempting from a savings account.

 

[reneeh63]

I bought my 2nd batch of $5,000 a few days ago to lock in the great rate.

 

[always_learning]

Apologies if this has been addressed. I read through all 40+ pages and then poked around on the TD website and didn't find the info.

Does anyone know what happens to the bonds purchased, but not yet gifted, in the event of death of either the purchaser or the recipient since bonds held in the gift box can't be altered?

 

[Dash man]

Apologies if this has been addressed. I read through all 40+ pages and then poked around on the TD website and didn't find the info.

Does anyone know what happens to the bonds purchased, but not yet gifted, in the event of death of either the purchaser or the recipient since bonds held in the gift box can't be altered?

They are owned by the intended recipient, and the estate executor would be responsible to ensure delivery of the iBond. If the recipient also dies, it would go according to the estate laws of the state.

 

[Steeler75]

FYI.

I scheduled gift purchases in advance for my DW and myself for purchase date of 4/29/22 and just checked the status on TD, shows gift purchases effective 4/1/22 at 7.12%, so we slid in under the door. Thought given the info above that we missed the cut off but somehow made it.

 

[always_learning]

They are owned by the intended recipient, and the estate executor would be responsible to ensure delivery of the iBond. If the recipient also dies, it would go according to the estate laws of the state.

Thanks Dash man.

What if the bonds are pre-purchased for, say, three years by a spouse, as some here have done. Would the estate stay open for that amount of time until the last bond is gifted? I'm trying to envision how this would work in the case of the death of either the purchaser or the recipient.

 

[Dash man]

What if the bonds are pre-purchased for, say, three years by a spouse, as some here have done. Would the estate stay open for that amount of time until the last bond is gifted? I'm trying to envision how this would work in the case of the death of either the purchaser or the recipient.

That is beyond my ability to answer and might be a question for an estate attorney.

 

[pb4uski]

I did read somewhere on the site that gift bonds have to sit for 5 days before they can be delivered. Something about ensuring that the payment has cleared.

I agree but it's hard for me to fathom why it is necessary since they took the money out of my bank account.

 

[always_learning]

That is beyond my ability to answer and might be a question for an estate attorney.

Yeah. That's about what I figured the answer would be. LOL.

It probably doesn't happen very often, but it would be interesting to know how it would be handled. Oh well.

Thanks for helping!

 

[Sunset]

That is beyond my ability to answer and might be a question for an estate attorney.

I would just ask Treasury Direct.

I suspect that all would be cashed and given to the beneficiary in cash. Thereby going around the $10K per year rule.

Similar to how if you buy a 5yr CD and die, doesn't the bank just cash it out to the beneficiary and not make them wait 5 years for the cash ?

 

[thefinancebuff]

What if the bonds are pre-purchased for, say, three years by a spouse, as some here have done. Would the estate stay open for that amount of time until the last bond is gifted? I'm trying to envision how this would work in the case of the death of either the purchaser or the recipient.

Inheriting I Bonds isn't subject to the annual limit. If the purchaser died, the recipient gets all the undelivered gifts at once. If the recipient died, the designated second owner or beneficiary or the estate gets all of them at once.

 

[Rianne]

Just checked out of curiosity. I have some I bought in 2001 that are paying 10.23%.

Really! Are you sure? We bought 10 I bonds over a 5-year period in the early 2000s. They're sitting in a lockbox at the bank. We're not touching them. I use the treasury direct every so often to check interest rates. I did not see 10.23%. Maybe I should check again.

 

[Sunset]

Really! Are you sure? We bought 10 I bonds over a 5-year period in the early 2000s. They're sitting in a lockbox at the bank. We're not touching them. I use the treasury direct every so often to check interest rates. I did not see 10.23%. Maybe I should check again.

It would be base rate + inflation rate (was 7.12%)
So if your base rate on a bond is 3%, then you are getting over 10%.
It would need to be the very EARLY 2000's :

Past rates:
November 1, 2007 1.20%
May 1, 2007 1.30%
November 1, 2006 1.40%
May 1, 2006 1.40%
November 1, 2005 1.00%
May 1, 2005 1.20%
November 1, 2004 1.00%
May 1, 2004 1.00%
November 1, 2003 1.10%
May 1, 2003 1.10%
November 1, 2002 1.60%
May 1, 2002 2.00%
November 1, 2001 2.00%
May 1, 2001 3.00%
November 1, 2000 3.40%
May 1, 2000 3.60%
November 1, 1999 3.40%
May 1, 1999 3.30%
November 1, 1998 3.30%
September 1, 1998 3.40%

 

[copyright1997reloaded]

It would be base rate + inflation rate (was 7.12%)
So if your base rate on a bond is 3%, then you are getting over 10%.
It would need to be the very EARLY 2000's :

Past rates:

May 1, 2001 3.00%
November 1, 2000 3.40%
May 1, 2000 3.60%
November 1, 1999 3.40%
May 1, 1999 3.30%
November 1, 1998 3.30%
September 1, 1998 3.40%

Yes, these were good times to be buying these. I also talked a friend into buying a good bunch of TIPS with nearly a 4% base rate.

 

[cyber888]

The 9.62% rate is now officially posted on the website:

https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm

 

[Sojourner]

I just bought my very first I-bond ever... at the new 9.62% rate!

Next step, get DW signed up at TreasuryDirect and buy another $10k bond to max out our yearly allocation.

EDIT TO ADD: I just read about how an additional $10k is allowed for a business account, so I guess I'll actually be able to do $30k/year once I open an account for my sole proprietor biz. Sweet! Hopefully it won't be a problem that I'm making less than $1k/year through that business nowadays.