Treasury Dept changes bond purchase to $10,000

[Bluemoon]

January 4, 2012

The annual purchase limit for online United States Savings Bonds is $10,000 per series, effective January 4, 2012, the Department of the Treasury announced today. The new limit applies to Series EE and Series I savings bonds purchased through TreasuryDirect at www.treasurydirect.gov. Under the new rules, an individual can buy a maximum of $10,000 worth of electronic savings bonds of each series in a single calendar year, or a total of $20,000.
http://www.treasurydirect.gov/news/pressroom/pressroom_com0112.htm

 

[Mulligan]

January 4, 2012

The annual purchase limit for online United States Savings Bonds is $10,000 per series, effective January 4, 2012, the Department of the Treasury announced today. The new limit applies to Series EE and Series I savings bonds purchased through TreasuryDirect at www.treasurydirect.gov. Under the new rules, an individual can buy a maximum of $10,000 worth of electronic savings bonds of each series in a single calendar year, or a total of $20,000.
http://www.treasurydirect.gov/news/pressroom/pressroom_com0112.htm

That is interesting, and I am glad they are doing it. I wonder why they waited so long to announce they would bring the limit up to make up for the $5k paper loss when they announced a long time ago they were eliminating the paper bonds. Maybe because they thought people would try to buy the 10k online before Jan. 1. I probably will max it before end of April to get the 6 months of 3.06%. the following 6 months isnt looking so good as the CPI is still under water from the end of the previous 6 month cycle.

 

[powerplay]

Thanks this is good news.

 

[ChadR]

Cool! Thanks for sharing this.

 

[ratto]

Am I crazy or what? I remember the I-Bond 11/01/2011 inflation rate was once set higher than 2.3% for 05/01/2011. Since I got maxed out already in 2011, so I decided to wait till after the new year. Now the rate of 11/01/2011 is only 1.53%. Could anyone confirm this?

 

[Mulligan]

Am I crazy or what? I remember the I-Bond 11/01/2011 inflation rate was once set higher than 2.3% for 05/01/2011. Since I got maxed out already in 2011, so I decided to wait till after the new year. Now the rate of 11/01/2011 is only 1.53%. Could anyone confirm this?

Yes, your first 6 months worth of interest is an annualized return of 3.06%, provided you purchase them before the end of April.

 

[ratto]

Maybe I'm already suffering from senior moments.

 

[pb4uski]

Not sure I am interested in these but could you game the system by making an estimated tax payment in Jan 2012 designed so your tax refund will be greater than $5,000 and then get $5,000 of paper I bonds via your tax refund? Would that effectively increase the max to $45,000 each calendar year for a couple filing jointly?

For married filing jointly, does the $5,000 limit for I bonds apply to the return (couple) or is it per taxpayer ($10,000 for a couple)?

 

[thefinancebuff]

Not sure I am interested in these but could you game the system by making an estimated tax payment in Jan 2012 designed so your tax refund will be greater than $5,000 and then get $5,000 of paper I bonds via your tax refund? Would that effectively increase the max to $45,000 each calendar year for a couple filing jointly?

For married filing jointly, does the $5,000 limit for I bonds apply to the return (couple) or is it per taxpayer ($10,000 for a couple)?

Yes, $45,000 = $20,000 I online, $20,000 EE online, $5,000 I in paper. $5,000 in paper I bonds is per return, not per person.

 

[brewer12345]

Just in time for rates to head to zero...

 

[Mulligan]

Just in time for rates to head to zero...

Unfortunately you are correct it looks like. Of course with I Bonds at zero fixed, its a win - lose scenerio. If you get better return that means inflation is higher. I can always hope for 5% inflation, led only by increases in cigarettes, clothes, and rent. That way I would get a true return on my money

 

[Koolau]

Just in time for rates to head to zero...

I suppose that is the optimist's way of thinking. I'm more on the other end of the spectrum (see tag line - again) suspecting inflation and therefore inflation-protected bond rates (just the inflation part) to go up. I could be wrong - again.