The I Bond Thread

[steelyman]

Annualized composite rate = 7.12%
Fixed rate = 0.00%
Semiannual inflation rate = 3.56%

https://www.treasurydirect.gov/indiv...esandterms.htm

[dm]

I just purchased some today.

[misanman]

Has anyone had trouble getting approved for a Treasury Direct account? I applied online a couple of weeks ago and the account was on hold until I mailed in form FS 5444E. Had to have the signature guaranteed by the bank. I got an email notification a week ago that they had received the form but that the account wouldn't be available until it was processed. No further updates and the account is still locked. Is this common? I had the impression that accounts are often opened immediately when the online application is submitted. DW's application is in the same boat but we are holding off on the FS 5444E until we get some response on my application.

[steelyman]

Quote:

Originally Posted by misanman Has anyone had trouble getting approved for a Treasury Direct account? I applied online a couple of weeks ago and the account was on hold until I mailed in form FS 5444E. Had to have the signature guaranteed by the bank. I got an email notification a week ago that they had received the form but that the account wouldn't be available until it was processed. No further updates and the account is still locked. Is this common? I had the impression that accounts are often opened immediately when the online application is submitted. DW's application is in the same boat but we are holding off on the FS 5444E until we get some response on my application.

I ran into this with a newly-opened “entity” account (for my trust). I haven’t returned the account/signature authorization form yet but I will. In the meantime I’ve bought $10K in my existing individual account.

[Dash man]

The $10,000 limit is per registration, so a married couple can by $30,000 worth with two individual registrations and one joint registration. A trust would be another way.

[SJ1_]

Quote:

Originally Posted by misanman Has anyone had trouble getting approved for a Treasury Direct account? I applied online a couple of weeks ago and the account was on hold until I mailed in form FS 5444E. Had to have the signature guaranteed by the bank. I got an email notification a week ago that they had received the form but that the account wouldn't be available until it was processed. No further updates and the account is still locked. Is this common? I had the impression that accounts are often opened immediately when the online application is submitted. DW's application is in the same boat but we are holding off on the FS 5444E until we get some response on my application.

Not at all. Just opened my 1st Treasury Direct account and bought bounds in a very short period of time.

[Sunset]

Quote:

Originally Posted by misanman Has anyone had trouble getting approved for a Treasury Direct account? I applied online a couple of weeks ago and the account was on hold until I mailed in form FS 5444E. Had to have the signature guaranteed by the bank. I got an email notification a week ago that they had received the form but that the account wouldn't be available until it was processed. No further updates and the account is still locked. Is this common? I had the impression that accounts are often opened immediately when the online application is submitted. DW's application is in the same boat but we are holding off on the FS 5444E until we get some response on my application.

I had no issue for both of my accounts.
DW had no issue for hers.
All immediately approved/opened.

[zaqxsw]

I bought 2 $10,000 I-Bonds the end of October for the first time and just have a very simple question. When do I see the monthly interest?

I understand the semi-annual compounding and rules on 1 year / 5 year and losing 3 months of interest prior to 5 years. But, when does an actual interest payment show up on:

https://www.treasurydirect.gov/tdhome.htm

Because the interest is only credited semi-annually, am I going have to wait until April 1, 2022 to see potential interest posted on their website for October 2021 I-Bonds? I thought I would see it monthly, but understood it wouldn't be added to the principle except twice a year. I didn't see anything today, November 1.

[pb4uski]

Quote:

Originally Posted by SJ1_ Not at all. Just opened my 1st Treasury Direct account and bought bounds in a very short period of time.

+1 Opened accounts for DW and I online.... took about 10 minutes each... I did mine on my phone and hers on my laptop. Then bought $10k each. It was very easy.

[pb4uski]

Quote:

Originally Posted by Dash man The $10,000 limit is per registration, so a married couple can by $30,000 worth with two individual registrations and one joint registration. A trust would be another way.

Are you sure? I question it only because it is contrary to everything else that I have read that it is $10,000/person and $20,000 for a couple. Do you have a link where this is allowed?

If so, that would be great!

Does anyone know whetner the additional $5k of paper bonds that you can buy with your tax return.. is that $5k per return ($5k for MFJ) or $5k per taxpayer ($10k for MFJ)?

[Dash man]

Quote:

Originally Posted by pb4uski Are you sure?

No, just the experience of having done it. This is what the TD site says:

“Maximum purchase
Electronic: $10,000, total, each calendar year
Paper: $5,000, total, each calendar year”

It doesn’t specify. I tried it with different registrations and it worked. For full disclosure, it wasn’t this year. 2017 I think. I do plan to do the third when we have a bit more cash.

[steelyman]

This may be a link someone else posted recently. It describes Treasury Direct entity accounts. They’re relevant because you can buy additional I Bonds beyond the individual $10K limit.

https://www.treasurydirect.gov/indiv...sLearnMore.htm

[zaqxsw]

I see no options for joint, or even listing beneficiaries.

[Another Reader]

Quote:

Originally Posted by zaqxsw I see no options for joint, or even listing beneficiaries.

Maybe you have to open a separate account for each entity/person?

[Dash man]

Quote:

Originally Posted by Another Reader Maybe you have to open a separate account for each entity/person?

My wife and I each opened an account. She bought an individual bond in her account, then I opened an individual in my account and added a new registration my name “with” her name.

ETA: You can add a new registration under the “Account Info” tab near the bottom of the page where it says “Registration List.”

[steelyman]

I couldn’t find a way to name beneficiaries like you have for retirement accounts either.

I assume it will go to my estate and the executor will do as directed in the will (if you have one). In the case of an entity/trust registration it would be the trust document.

[Dash man]

Quote:

Originally Posted by steelyman I couldn’t find a way to name beneficiaries like you have for retirement accounts either. I assume it will go to my estate and the executor will do as directed in the will (if you have one). In the case of an entity/trust registration it would be the trust document.

Follow my instructions above and select Add a New Registration.” There is an option to select a beneficiary registration.

[aja8888]

Quote:

Originally Posted by Dash man Follow my instructions above and select Add a New Registration.” There is an option to select a beneficiary registration.

When I added the new beneficiary registration (my daughter), I basically (I think) re-registered the $10,000 i Bond as me as the primary and her as Payable on Death. It was not straightforward as to how to do this.

[steelyman]

Quote:

Originally Posted by Dash man Follow my instructions above and select Add a New Registration.” There is an option to select a beneficiary registration.

Thanks! I see you’re correct. It doesn’t seem to like what I tried to do which was to register my trust as my beneficiary (problem: identical tax IDs for primary account owner and beneficiary, which are both me).

My will is a pour-over so it’s probably unnecessary. But your post might benefit others.

[Gill]

Quote:

Originally Posted by pb4uski Are you sure? I question it only because it is contrary to everything else that I have read that it is $10,000/person and $20,000 for a couple. Do you have a link where this is allowed? If so, that would be great! Does anyone know whetner the additional $5k of paper bonds that you can buy with your tax return.. is that $5k per return ($5k for MFJ) or $5k per taxpayer ($10k for MFJ)?

The post is incorrect. You don’t get an additional $10,000 for a joint account. Also, the $5,000 from a tax refund is per return.
Gill