The I Bond Thread

[Finance Dave]

It just depends on how far out people want to go. I am comfortable with gifting for 2023 and 2024. The one year minimum period for the 2023 gift deliveries will be April 2023, and the one year minimum period for the 2024 gift deliveries will be a year from now. I plan to wait until April 2023 to see what the next rate is before deciding to go out to 2025.

I'm not disagreeing with you on the bold text, but that's odd. Are we saying that the one year period is up BEFORE we gift the bond? That just seems about as odd as a solar nightlight.

 

[braumeister]

There might be a little confusion here, but I'm not sure where exactly.

For the record, you can buy or receive $10K worth of I-bonds in each CALENDAR year. When a gifted bond was bought is irrelevant.

 

[jollystomper]

granted this is not a life or death matter, but I just don't understand not sraying up late, or getting up early, to do this. Would it have been so bad to get up at 6:30 AM to do this?

It is similar to the folks who show up less than a hour before their flight and are shocked to see huge checkin and security lines... some think it is too inconvenient and forget about about "lead time" and demand. Working in IT and frequent travel taught me this early in my career .

 

[jollystomper]

I'm not disagreeing with you on the bold text, but that's odd. Are we saying that the one year period is up BEFORE we gift the bond? That just seems about as odd as a solar nightlight.

Sorry, I should be more clear. I am talking about my own personal situation and not a general rule. My gifts I intend to give in 2023 were bought in April 2022. I will deliver it before then, the "minimum period" refers to the earliest I could choose to redeem the bonds (1 year from when they were purchased as a gift, if I have delivered them before that year.). The bonds I intend to gift in 2024 will meet their one year period a year from now, but since I will not gift them until sometime in 2024 I would not be able to choose to cash them until that year, when I gift them.

 

[Sunset]

Sorry, I should be more clear. I am talking about my own personal situation and not a general rule. My gifts I intend to give in 2023 were bought in April 2022. I will deliver it before then, the "minimum period" refers to the earliest I could choose to redeem the bonds (1 year from when they were purchased as a gift, if I have delivered them before that year.). The bonds I intend to gift in 2024 will meet their one year period a year from now, but since I will not gift them until sometime in 2024 I would not be able to choose to cash them until that year, when I gift them.

Actually, you won't be able to cash them, since you give them as a gift

You sparked an interesting thought. Can I buy a gift for someone, then keep it in the gift box for a year and then ungift it so I get the $$ back into my account ?

 

[cyber888]

Tried to login at 7:30AM EDT this morning and did not get through. Long delays at each step and finally a message that the TD site was "Not Available".

I hope you try again and get through. I did the whole thing last weekend without any problems, because I feared the system would get bogged down this week. Good luck.

 

[Chuckanut]

From today's WSJ:

So many investors are scrambling to buy I Bonds, which pay a 9.62% interest rate if purchased by Oct. 28, that the Treasury Department said its overwhelmed site might not process all the orders in time.

During just the final week of October, the Treasury issued $1.95 billion in I Bonds, more than the total for fiscal year 2021. In just one year, some 3.7 million new accounts were created on the site, more than the 2.4 million for the prior 10 years combined.

 

[NW-Bound]

I am in the same boat as NW Bound. My 7/2000 bonds have $90,000 of interest so far and will bump me into the 24% bracket.

I would pay interest annually, except I think you have to do it for all your bonds and settle up accrued interest when you start. That would be an even bigger bulge.

7/2000 I bond? You, lucky you. I envy you. 3.6% above inflation!

I learned about I bond too late, and only started to accumulate in 2004, and got only 1.0-1.2% above inflation. But with the max allowed back then of $30K/year per person, I maxed out for my wife and myself for 2 years.

 

[jollystomper]

Actually, you won't be able to cash them, since you give them as a gift

They are between DW and I, so what is hers is mine and what is mine is hers but I'm the finance person so I can access all .

 

[jollystomper]

You sparked an interesting thought. Can I buy a gift for someone, then keep it in the gift box for a year and then ungift it so I get the $$ back into my account ?

I do not believe there is an "ungift" - aren't they issued under the registration used, which would then associate them with the name and SS number of the giftee? I doubt they would allow that.


So, be nice to the folks you gift to...

 

[Finance Dave]

Sorry, I should be more clear. I am talking about my own personal situation and not a general rule. My gifts I intend to give in 2023 were bought in April 2022. I will deliver it before then, the "minimum period" refers to the earliest I could choose to redeem the bonds (1 year from when they were purchased as a gift, if I have delivered them before that year.). The bonds I intend to gift in 2024 will meet their one year period a year from now, but since I will not gift them until sometime in 2024 I would not be able to choose to cash them until that year, when I gift them.

Thank you for clarifying

 

[ripper1]

Is the TD site down today? Can't get through

 

[jollystomper]

Is the TD site down today? Can't get through

The site is again being overwhelmed due to the heavy volume of attempts to make purchases before month end (must be bought today as the transaction occurs the following business day).

 

[misanman]

I couldn't get on yesterday but tried it at 2:00AM EDT and was able to buy. These will likely be my last purchases for a while as we have maxed out this year as well as the "gifts" for 2023. I don't feel inclined to do anything about 2024 but I suppose I could change my mind next year depending on how things shake out.

 

[gt5059b]

You sparked an interesting thought. Can I buy a gift for someone, then keep it in the gift box for a year and then ungift it so I get the $$ back into my account ?

Nope; buying an I Bond gift is irrevocable and legally owned by the recipient. You are just holding it until delivered.

 

[jldavid47]

The Treasury Department announced this morning that the new interest rate for I-bonds for the next 6 months is 6.89%.

 

[finnski1]

The Treasury Department announced this morning that the new interest rate for I-bonds for the next 6 months is 6.89%.

Thanks. That's better (6.4% range)than I expected.

 

[Golden sunsets]

Wow; They increased the fixed component from 0% to .4%. I didn't expect that.

 

[finnski1]

Wow; They increased the fixed component from 0% to .4%. I didn't expect that.

Ah that explains it.

 

[cyber888]

This 6.89% new I-Bond rate is really much better than I expected.

Cheers to all who bought the 9.62% in October. We get a 1-Year locked rate of 8.255%

 

[jldavid47]

OK, the first article I read was incomplete (I'm shocked! SHOCKED, I tell you! ). It looks like the 6 month variable rate for existing bonds is 6.49%. There is a 0.4% fixed component for I Bonds issued from 11/22 through 4/23 which makes their composite yield 6.89%.

Yeah, I was all excited, too.

Full details can be found here:

https://www.treasurydirect.gov/savings-bonds/i-bonds/i-bonds-interest-rates/

 

[cyber888]

I went to look at my Ibond rate earning for the month of October. While it is displaying 9.62% earnings for the one I bought in April 1, 2022, my monthly earning for October is still $60 or the old rate of 7.12%.

April, May, June, July, Aug, Sept (6 months) is understandably earning $60 a month except for the $57 rounded off.

But Oct. 1 - 31 should be $80/month for the 9.62%. Not sure why I'm still getting $60/month Anyone explain this?

 

[4legsgood]

This 6.89% new I-Bond rate is really much better than I expected.

Cheers to all who bought the 9.62% in October. We get a 1-Year locked rate of 8.255%

If you bought in October you'll get 9.62% for the first 6 months, then 6.48% for the second 6 months, so 8.05% for a year. Due to zero fixed portion in interest calculation for an October purchase.

 

[CRLLS]

Help me out on this for a moment.

Having purchased four I-bonds between DW and I in Oct, we will get the 6.48% when our bonds renew in April. Those who buy in November will get 0.4% over our renewal rate for 6 months and continue to get 0.4% more than us for the duration of our I-Bonds?

I'm not complaining (much). I'm just trying to confirm my understanding.

 

[jollystomper]

I wonder if the fixed rate is to make up for the outages/slowdowns that limited bond purchases in October ?