Kinda encourages the investor to buy on the last day of a month and sell on the first day of a month.Yup, that makes sense... they pay you a full month of interest in the month that you purchase and no interest in the month that you redeem... seems fair enough.
No financial institution would be stupid enough to do that (see comment above). The government, on the other hand...Funny thing is that if another financial institution did that to a consumer/investor I wonder if they would find that acceptable?
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!
Wait! Vanguard says you can buy ibonds at a bank? That’s not correct is it?
I bet they dont care if its true as long as you arent pestering them to buy, ha! I talked to a Vanguard rep a couple months ago needing help getting a bond quote. He thought I said I Bond. I said I already have a full amount of those and know they cant be purchased at Vanguard anyways. I asked if they were being pestered with phone calls on Ibonds, and he laughed and said the phone was ringing off the hook with people trying to buy them through Vanguard.
That's not the point. From the financial institution's perspective, that kind of interest payment arrangement would cost them millions (or more) per year. THAT'S why it would be stupid for them to do that.Yeah, with online savings account rates at 0.7% you could pick up $5.83 on $10,000!
That's not the point. From the financial institution's perspective, that kind of interest payment arrangement would cost them millions (or more) per year. THAT'S why it would be stupid for them to do that.
My post #89:
screwed up a purchase back on 3/18/22. Was informed that I had over-purchased in my attempt to buy cross-gifts betwixt wife and I and that money would be refunded. Still haven't seen it, but it shows in TD as being there and earning 7.2%.
My current working theory is that TD shows purchases made during the month as being made and earning interest as of the first, but redemptions made before 5 years incur a 3 month interest penalty. So if they charged a penalty for early redemption of March, April, and May they could return exactly $20k to us on June 1st. Or maybe they decided to just keep the borrowed money for a while. Eager to see what the first of June reveals.
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June 1 came and went with no refund - or interest posted - currently TD has this posted:
"The annual purchase limit for Series I savings bonds in TreasuryDirect® is $10,000. Purchases exceeding the annual limit will be refunded; refunds may take up to 16 weeks."
Now I'm waiting to see what happens July 1.
You are in the same boat as me, it looks like we will have to wait the 16th week to be refunded. See another post that he is in 14th week and still not yet being refundI called TD today and waited 2.5 hours before I could talk to someone. My purchase mistake from 10 weeks ago hasn’t been refunded so I wanted to find out status. I was told refunds now take 12-16 weeks.
Newbie here, skimmed thru the 890 posts for the I-BOND thread. My impression is, drop 10k a year and the rate of return is 8-9 percent? Is this true. I’m cool with holding long haul and know I would lose 3 month interest if I do t hold for 5 years…..but wow- 8-9 percent.
Any feedback would be appreciated for this newbie. I have way too much cash sitting I. Money markets paying less than 1 percent.
Newbie here, skimmed thru the 890 posts for the I-BOND thread. My impression is, drop 10k a year and the rate of return is 8-9 percent? Is this true. I’m cool with holding long haul and know I would lose 3 month interest if I do t hold for 5 years…..but wow- 8-9 percent.
Any feedback would be appreciated for this newbie. I have way too much cash sitting I. Money markets paying less than 1 percent.
The 9.62% is only for 6 months and then it changes. The official rate will be announced in November and May but you will get it for a full 6 months from the month of your original I-Bond purchase.
I bought last December at 7.26% , the official rate changed to 9.26% in May but my rate did not change till June.
Reading about how long it takes mistakes to be refunded is amazing.
Could also be informative to people who haven't bought any I-bonds to read a bunch, watch the treasury videos, ask questions, and then make the first purchase carefully with only a tiny amount of money. If it works fine, then can do another up to the $10K limit.
Had I heard of all these issues, I would have made my first purchase as a $100.