The I Bond Thread

[Gumby]

https://www.reddit.com/r/personalfi...exact_ibond_interest_calculation_explanation/

That explanation fits the pattern I have observed so far - $60 first month and $56 second month -- so I assume it is correct. Though it is a strange way to calculate it. As an aside, I note that there is also a bond calculator on the TD website under the "tools" tab. It is meant for paper bonds, but it works for electronic ones too. You don't need the serial number, but you do need to put in only $1000 for the bond amount and then multiply the result by 10 (apparently, you couldn't purchase a $10k face amount paper bond in December 2021). It also shows $116 in accrued interest as of today for an I-bond purchased in December 2021.

...
Looks like it is spreadsheet time to keep track of all these.

Or maybe not. This is linked in the reddit post referenced by Dabbler above (and misanman before that). It appears this guy has done the work for us.

http://eyebonds.info/ibonds/home10000.html

 

[lawman]

Redeeming I-Bonds

I recently converted some paper I Bonds to Treasury Direct. Those bonds had my name first and my wife's name under mine. I also have other Treasury Direct I Bonds..All my bonds now show POD to my daughter. There is no mention of my wife on any of them..When a bond holder dies what is the process for redeeming or transferring those I-bonds?

 

[pb4uski]

Google is your friend.

https://www.treasurydirect.gov/indi...g person becomes the,time the bond was issued.

 

[Gumby]

Threads merged.

 

[LarryMelman]

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?

I looked into this for my parents recently. I was assuming that if they bought some I-bonds using funds from a bank account in their trust, that their I-bonds must be titled to the trust as well. This is not true.
What we did instead, was to have each parent buy 10K in their own names with a named beneficiary. (Then it's not subject to probate if it is still held at death.)
The trust is its own legal entity and is itself limited to 10K purchases per year. We could have done that too, but chose not to. The rules for how to do that appear to be here:

https://www.treasurydirect.gov/forms/savpdp0049.pdf
which I found from
https://www.treasurydirect.gov/indiv/planning/plan_estate_trustform.htm

I welcome any corrections. I have not seen this discussed in this monster of a thread, but it may well have been.

 

[Cat-tirement]

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 :

This made me go look at my I-bonds from when megacorp was pushing payroll deduction. The peak in my stash was purchased Nov 2000, current combined rate is now 13.18%. Of course now I wish I had more of those.

 

[Katiek]

Dumb question - I saw when I signed up that the reporting is all electronic. Do they send you an email with a tax statement at the address on your account, or do you have to remember to go to the account and print something out? Thanks

 

[Dash man]

Dumb question - I saw when I signed up that the reporting is all electronic. Do they send you an email with a tax statement at the address on your account, or do you have to remember to go to the account and print something out? Thanks

They don’t send the tax statement, but for my T-bills I get an email saying they are available.
You won’t get any tax statements for iBonds until you redeem them and take the earned interest,

 

[steelyman]

I learned a little something about Treasury Direct this week. It was new to me but maybe not others so I’ll mention as an FYI.

I’d had an individual account at TD since 2015 that I’ve been dutifully buying I bonds in.

In 2021 I also established an entity account for my trust (thanks to learning about those in this thread). This allows me to double the $10K limit per calendar year.

I scheduled a $10K purchase for this May. While that money had been taken from my bank, it never seemed to show up in my TD account (?).

It turns out it was there but had landed in a “linked account” (no idea why or how) and was in fact visible on my TD page. It was a simple matter to get it moved from the linked status to my main listing but until then it was a head scratcher to me. No interest was lost while in linked status.

[ADDED] Here’s an info piece about linked accounts:

https://www.treasurydirect.gov/indiv/help/TDHelp/help_ug_126-LinkedAccountLearnMore.htm

 

[FindingForward]

Think it's still worth doing the spouse gifts for 2023? Late to thread, so missed the 4/28 cutoff.

 

[Dash man]

Think it's still worth doing the spouse gifts for 2023? Late to thread, so missed the 4/28 cutoff.

Sure it is. This current rate is good for 6 months and inflation doesn’t look to be tapering off just yet. Even if it does, it won’t by much.

 

[FindingForward]

Sure it is. This current rate is good for 6 months and inflation doesn’t look to be tapering off just yet. Even if it does, it won’t by much.

Thanks for your input and to everyone who shared their thinking in this thread. Much appreciated.

 

[BooBoo]

Signature Guarantee

I just set up two treasury direct accounts (trust and individual) for my mother. I also purchased three i-bonds for $3333 in each account. All is good so far. When I checked to make sure the purchases processed, I read messages that each purchase did not process because the bank rejected the account number. After attempts to change or add a new account I find out the only way to change or add an account is via paper with form FS 5512. So I download the form and fill out two forms with everything filled in but the account number. I sent the paperwork to my Mom and explained that she should go to her local (major bank) and get a signature guarantee. The manager at the local bank could not perform signature guarantee and said she would look into the matter and get back to us. Is she going to have to pay for the bank for a signature guarantee? After a little research it looks like only certain banks offer signature guarantee? I am pretty sure I entered the account numbers correctly as I very diligent when entering account numbers.


Your input is greatly appreciated



Your input is greatly appreciated.

 

[Splash]

I got the same message when I set up my Treasury Direct account last year. I completed form FS 5512, had my banker sign it, and sent it to TD. TD rejected the form saying the signature on the form was not acceptable. I called TD to find out what was wrong and how to fix it. Talking with TD I was able to determine that I fat fingered my bank account #. TD deleted the TD account for me and then I was able to re-enter the TD account with the correct bank account #. The person at TD was great. I would suggest you call them for guidance.

 

[BooBoo]

I was able to get the account number corrected via Treasury direct customer service. Apparently the Trust was registered incorrectly and was also able to get that corrected as well.. Still waiting on the bank as to who can do a signature guarantee, although this is a mute issue for now.



Am I not able to add registrations for POD because it is a trust?


Thanks,
Boo

 

[Sunset]

....

Am I not able to add registrations for POD because it is a trust?

Probably not, as Treasury Direct treats entities differently than individual accounts.
After all, a Trust cannot die, so how can it have POD

 

[Chuckanut]

Now here's an odd thing. I had logged into my TD account to check and see if some paper Ibonds had been converted. I was looking at my manifest when suddenly up pops a screen saying my accounted is locked because of too many invalid activities. Of course, the TD phone lines are now closed.

Anybody have something like that pop-up after successfully logging on?

 

[BooBoo]

Try using the messaging feature, I could not wait 2 hours to talk to someone. It worked for my situation.

 

[Chuckanut]

Try using the messaging feature, I could not wait 2 hours to talk to someone. It worked for my situation.

Don't you have to logon to use the messaging function. I can't logon. I am locked out of my account.

 

[sengsational]

Don't you have to logon to use the messaging function. I can't logon. I am locked out of my account.

You could try this link (at the top of the non-authenticated page): https://www.treasurydirect.gov/email.htm

 

[sengsational]

Multiple Beneficiaries or Just One?

Has anyone figured out setting up beneficiaries? It says:

Your electronic savings bonds and marketable securities may be registered in your name alone, your name with a secondary owner, or your name with a beneficiary.

So "a beneficiary" sounds like you're not going to have this per stirpes to all your kids or anything fancy like that.

I didn't want to try anything because we all would predict how hard it would be to untangle if it gets a snarl, but here's the menu path for it:

Log in > Manage Direct > Manage My Securities > Edit a registration > (select a specific item) > (answer secret question) > Add New Registration

I stopped before continuing past there. You DO need the beneficiary's SSN to add a registration. When specifying a new registration, you choose from 3 possible types: sole owner, primary owner, and beneficiary.

Once the new registration is added, the entry is supposed to appear in the drop-down, and so should be selectable, but I'm not sure whether "submit" or "modify selection" would be how to proceed.

 

[Chuckanut]

You could try this link (at the top of the non-authenticated page): https://www.treasurydirect.gov/email.htm

Thanks. Unfortunately, that link contain this message

For help unlocking or accessing your account, you must call us at 844-284-2676.

What really gets me about this is that I was logged in and working my way to the I-bond manifest when suddenly it locks my account for security reasons.


The wait times vary wildly. I started at 2+ hours. After 45 minutes it was 1.5 hours. At one hour it was 2+ hours again. I am leaving it ringing (using a spare phone). At 1.75 hours the wait is now 1.5 hours. They are going backwards.

Edited to add: it's now been two hours of waiting. I am back to 2+ hours of more waiting. Who knew the Treasury had mastered time travel?

Something ain't right at TD.

 

[sengsational]

What really gets me about this is that I was logged in and working my way to the I-bond manifest when suddenly it locks my account for security reasons.

That is annoying. What a pain to be on hold all that time. I haven't used it, but apparently there's a thing on my Pixel phone where it will "be on hold for me". It somehow discriminates between the annoying on-hold pitches (usually to use the web site that's broken) and a real-live person.

What I might have done, unless things were urgent, is to just give up for a few days and see if the account stays locked. Although I guess you did wait one day.

 

[Accidental Retiree]

Thanks. Unfortunately, that link contain this message

What really gets me about this is that I was logged in and working my way to the I-bond manifest when suddenly it locks my account for security reasons.


The wait times vary wildly. I started at 2+ hours. After 45 minutes it was 1.5 hours. At one hour it was 2+ hours again. I am leaving it ringing (using a spare phone). At 1.75 hours the wait is now 1.5 hours. They are going backwards.

Edited to add: it's now been two hours of waiting. I am back to 2+ hours of more waiting. Who knew the Treasury had mastered time travel?

Something ain't right at TD.

That’s what it did to us, twice.

Two and a half hour wait the first time and nearly 3 hours the second.

 

[pb4uski]

I was just on Vanguard looking at bonds and CDs and noticed this banner at the top of the page. Looks like perhaps i-bonds are pretty popular!