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05-01-2022, 09:05 AM
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#821
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Thinks s/he gets paid by the post
Join Date: Aug 2017
Location: Champaign
Posts: 4,722
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Quote:
Originally Posted by cj1717
Just checked out of curiosity. I have some I bought in 2001 that are paying 10.23%.
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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.
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"Do not go where the path may lead, go instead where there is no path and leave a trail."
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05-01-2022, 10:18 AM
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#822
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,093
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Quote:
Originally Posted by Rianne
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.
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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%
__________________
Fortune favors the prepared mind. ... Louis Pasteur
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05-01-2022, 05:09 PM
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#823
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Location: Upstate
Posts: 2,950
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Quote:
Originally Posted by Sunset
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%
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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.
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05-02-2022, 09:25 AM
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#824
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Thinks s/he gets paid by the post
Join Date: Aug 2013
Posts: 1,972
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The 9.62% rate is now officially posted on the website:
https://www.treasurydirect.gov/indiv...nds_glance.htm
__________________
No to consumerism, Living a simple life, enjoying the experience - not the material stuff
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05-02-2022, 09:47 AM
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#825
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Thinks s/he gets paid by the post
Join Date: Jan 2012
Posts: 2,593
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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.
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05-03-2022, 06:05 AM
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#826
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,655
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I have two iBonds that are now over 11%.
11-02-2002 11.3%
05-01-2006 11.09%
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05-03-2022, 05:14 PM
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#827
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Thinks s/he gets paid by the post
Join Date: Apr 2008
Posts: 1,251
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I tried earlier today to log into TD but it was "down for maintenance". I just successfully logged in and I'm seeing something strange. I have bonds issued in Nov, 2021, Dec, 2021, Jan, 2022, and Feb, 2022. The interest rate listed for the November bonds is 9.62%. The interest rate listed for the Dec, Jan, and Feb bonds is listed as 7.12%
Has anyone else seen this? I don't have an explanation. Maybe they let a junior programmer update the site.
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05-03-2022, 05:32 PM
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#828
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Full time employment: Posting here.
Join Date: Mar 2019
Posts: 760
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Quote:
Originally Posted by misanman
I tried earlier today to log into TD but it was "down for maintenance". I just successfully logged in and I'm seeing something strange. I have bonds issued in Nov, 2021, Dec, 2021, Jan, 2022, and Feb, 2022. The interest rate listed for the November bonds is 9.62%. The interest rate listed for the Dec, Jan, and Feb bonds is listed as 7.12%
Has anyone else seen this? I don't have an explanation. Maybe they let a junior programmer update the site.
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You earn the original interest rate for 6 months, then the next interest rate for 6 months, and so on. The bonds issued in Nov 2021 finished their first 6 months in April, so for May it will show the 9.62% rate. The others are not yet 6 months old so will show the original 7.12% rate. Next month the bonds issued Dec 2021 should show a 9.62% rate. The others should show it in July and August, respectively.
https://www.treasurydirect.gov/indiv...rms.htm#change
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05-03-2022, 06:23 PM
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#829
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,363
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I did a couple calculations for a relative of the minimum IRR if you buy an ibond on 5/1/2022, get the 9.62% for 6 months and nothing thereafter and redeem on 5/1/23 or 1/1/24 and the yields were 4.70% and 2.79%, respectively.
4.70% for 12 months is great, and 2.79% for 20 months is not too shabby.
Now realistically, I think the yields for a 12 month and 20 month hold will be better than those numbers, but those are the minimum yields.
2023 Delivery | | | 2024 Delivery | | XIRR | 4.70% | | XIRR | 2.79% | 05/01/22 | -10,000 | | 05/01/22 | -10,000 | 05/01/23 | 10,470 | | 01/01/24 | 10,470 | 12 | months | | 20 | months |
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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05-03-2022, 06:25 PM
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#830
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,655
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Quote:
Originally Posted by misanman;
I tried earlier today to log into TD but it was "down for maintenance". I just successfully logged in and I'm seeing something strange. I have bonds issued in Nov, 2021, Dec, 2021, Jan, 2022, and Feb, 2022. The interest rate listed for the November bonds is 9.62%. The interest rate listed for the Dec, Jan, and Feb bonds is listed as 7.12%
Has anyone else seen this? I don't have an explanation. Maybe they let a junior programmer update the site.
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They update on every six month anniversary of your purchase month, always on the first of the month.
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05-03-2022, 08:18 PM
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#831
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Administrator
Join Date: Apr 2006
Posts: 23,037
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Let me try to restate things to be more understandable. Every May 1 and November 1, the Treasury sets the interest rate at which I-Bonds will be sold for the next 6 months. If you buy an I-Bond during that period, you get that rate for six full months. This applies whether you buy the I-Bond in the first month of the rate period or the sixth month. So if you buy an I-bond in May 2022, you get an APR of 9.62% until November 1, 2022. If you buy an I-Bond in June 2022, you get an APR of 9.62% until December 1, 2022. If you buy an I-Bond in July 2022, you get an APR of 9.62% until January 1, 2023. And so on and so forth.
__________________
Living an analog life in the Digital Age.
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05-03-2022, 08:27 PM
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#832
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Recycles dryer sheets
Join Date: Oct 2020
Location: San Antonio
Posts: 116
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Can these be purchased in an IRA ?
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05-03-2022, 08:28 PM
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#833
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Administrator
Join Date: Apr 2006
Posts: 23,037
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Quote:
Originally Posted by Katoslake
Can these be purchased in an IRA ?
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My understanding is that they cannot be purchased in an IRA.
__________________
Living an analog life in the Digital Age.
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05-03-2022, 09:39 PM
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#834
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2012
Posts: 6,176
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I get a pleasant feeling seeing the $10K in I-Bonds I bought a year ago has earned (even after deducting the 3 month penalty) $356. Whereas had I left that money in my savings or money market accounts, it would have earned about $40.
__________________
FIREd date: June 26, 2018 - "This Happy Feeling, Going Round and Round!" (GQ)
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05-03-2022, 09:46 PM
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#835
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Thinks s/he gets paid by the post
Join Date: May 2007
Posts: 1,603
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So does the 3 month penalty get added back in after 5 years?
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05-03-2022, 10:06 PM
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#836
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2012
Posts: 6,176
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Quote:
Originally Posted by homestead
So does the 3 month penalty get added back in after 5 years?
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Yes, that is how I understand it. The Treasury Direct display amount will show the full interest earned.
__________________
FIREd date: June 26, 2018 - "This Happy Feeling, Going Round and Round!" (GQ)
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05-04-2022, 06:01 AM
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#837
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,363
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Quote:
Originally Posted by Gumby
Let me try to restate things to be more understandable. Every May 1 and November 1, the Treasury sets the interest rate at which I-Bonds will be sold for the next 6 months. If you buy an I-Bond during that period, you get that rate for six full months. This applies whether you buy the I-Bond in the first month of the rate period or the sixth month. So if you buy an I-bond in May 2022, you get an APR of 9.62% until November 1, 2022. If you buy an I-Bond in June 2022, you get an APR of 9.62% until December 1, 2022. If you buy an I-Bond in July 2022, you get an APR of 9.62% until January 1, 2023. And so on and so forth.
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Yes, you get the current rate for the first 6 months of ownership, then next declared rate for the second 6 months of ownership, etc.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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05-05-2022, 03:42 PM
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#838
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,093
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Quote:
Originally Posted by 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
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We got our paper I-bond, it's a single $5,000 bond which is nice. Best of all it's Bond Date (top date) is for April. Means we get the 7.12% and then the 9.62% during the next 12 months !!
__________________
Fortune favors the prepared mind. ... Louis Pasteur
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05-05-2022, 06:47 PM
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#839
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Posts: 3,413
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Is there a detailed set of instructions for buying in a revocable living trust? Do I open a new account in the name of the trust? Do I send in copies of the trust documents?
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05-05-2022, 06:47 PM
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#840
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Recycles dryer sheets
Join Date: Aug 2016
Location: Austin
Posts: 182
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Trying to decipher the I bond math... I understand interest is paid semiannually but is it also compounded semiannually or monthly?
In any case, perhaps someone could help me with the calculation. I bought a $10k I-Bond in November 2021. Six months of interest through April 2022 should be:
P*[1+(.0712/2)]=$10,356 or with monthly compounding
P*[1+(.0712/12)]^6=$10,361
However, what Treasury Direct shows is $10,236. I've read elsewhere that TD withholds 3 months' interest for the withdrawal penalty for holding less than 5 years but that would result in a value of $10,178 or something close depending on compounding.
What am I missing?
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