The I Bond Thread

[Eucerin]

I wouldn't be surprised if the Bond stays there. I inadvertently went over the limit earlier this year and I got the email but they never reversed the purchase. That was in February. My error was much smaller, $415, but I think by now you're in the clear.

I like the way you think. And I hope you are right.
I am still waiting for my money back, it has been 14 weeks.

 

[pb4uski]

Interesting wrinkle in the system. DW set up an account to buy an I-bond back in March. First time for her. She bought her first one for $10K and all was fine. Then she tried to buy one as a gift for me, but it accidentally got wrongly registered to her, thanks to the stunningly well designed TD website.



So she got an email informing her that the purchase exceeded the annual limitation.





Fine, and understood. But that was over 19 weeks ago. Both bonds are shown in her account, bought on the same day. I have heard that TD sometimes overlooks the error for first time buyers, and I'm wondering if that happened here. Granted they are overwhelmed with volume this year, but still...

Yes, when buying a gift you need to make sure that the registration is different from the account holder in the upper right hand corner of the screen and that the this is a gift checkbox is checked. Better not to rush when buying a gift and verify everything before clicking on the purchase button.

I would think the it would pretty easy to add to the programming a full stop if someone tries to buy additional i-bonds and have already bought their limit for the calendar year.

 

[HarryHawk]

First time doing anything on the site is an adventure. Pretty sure it was written by the same folks who wrote the tax code.

Unlike the tax code, once you figure it out, it's pretty fast to execute what you need to do

 

[Eucerin]

Does anyone know where to see the accrued interest in TD?
I bought I-bond in April, it still showing the amount I bought; no where to see accrued interest

 

[Trailwalker]

Does anyone know where to see the accrued interest in TD?
I bought I-bond in April, it still showing the amount I bought; no where to see accrued interest

You won't see it until August due to the three month early redemption period and the government's way to account for that. Next month, it should show your purchase amount, and current value (including interest for July).

 

[Gumby]

You won't see it until August due to the three month early redemption period and the government's way to account for that. Next month, it should show your purchase amount, and current value (including interest for July).

To be precise, you'll see one month's interest as of August 1 (it is technically April's interest, since if you cash in prior to 5 years, you surrender the last 3 months interest). Also, just so you don't freak out in September, it will be $60 on $10k for month 1, then $56 more on month 2, then $60 more each month for the next 4 months (totaling $356 over 6 months, which is a 7.12% APR).

 

[pb4uski]

Interesting/odd that it is $60/$56/$60/$60/$60/$60 rather than $59.33/month for 5 months and $59.35 in the last month.... whatever.

 

[Gumby]

Interesting/odd that it is $60/$56/$60/$60/$60/$60 rather than $59.33/month for 5 months and $59.35 in the last month.... whatever.

It is a consequence of the fact that the base bond on which the interest is calculated is the $25 denomination. Interest is rounded to the nearest cent. So when there is a one cent round down on the $25, there is a $4.00 effect on $10k (400 times $0.01)

 

[Eucerin]

That's good to know. THANKS!!!

 

[calmloki]

On 4/25/22 I goofed on gift purchases for Gal and I after buying this year's $10k personal bonds. Rather than gifts they recorded as new $10k personal purchases - and over the annual limit. Was notified that we were over the limit, but the bonds just sat and sat - no refund. Then after months they showed that they had earned $60 interest each! WooHoo - happy guy thinks the gubermint has erred in our favor! Than a few days ago we each were sent emails saying the over-purchases would be refunded via ACH on the 26th to the bank we paid for them with.

And so it has come to pass. We each got our $10k back today, as well as $60 each in interest. Color me well satisfied, as I reckon my mistake still earned better than bank interest during the time it was away from us - even though it was my mistake.

 

[pb4uski]

So now go buy those gifts but be very careful!

 

[Eucerin]

On 4/25/22 I goofed on gift purchases for Gal and I after buying this year's $10k personal bonds. Rather than gifts they recorded as new $10k personal purchases - and over the annual limit. Was notified that we were over the limit, but the bonds just sat and sat - no refund. Then after months they showed that they had earned $60 interest each! WooHoo - happy guy thinks the gubermint has erred in our favor! Than a few days ago we each were sent emails saying the over-purchases would be refunded via ACH on the 26th to the bank we paid for them with.

And so it has come to pass. We each got our $10k back today, as well as $60 each in interest. Color me well satisfied, as I reckon my mistake still earned better than bank interest during the time it was away from us - even though it was my mistake.

Congrats to you that got your money back and plus interest (of course) !!!
We made similar mistakes afew days before you did, that means that our money should be returned soon. That's a good news!

 

[calmloki]

So now go buy those gifts but be very careful!

Oh, they did get bought - actually on 4/25. I misspoke, my initial failed gift purchase was on 3/18, the replacement gift purchases were on 4/25. Took a little bit for me to get back on the pony.

 

[braumeister]

Interesting wrinkle in the system. DW set up an account to buy an I-bond back in March. First time for her. She bought her first one for $10K and all was fine. Then she tried to buy one as a gift for me, but it accidentally got wrongly registered to her, thanks to the stunningly well designed TD website.
So she got an email informing her that the purchase exceeded the annual limitation.
Fine, and understood. But that was over 19 weeks ago. Both bonds are shown in her account, bought on the same day. I have heard that TD sometimes overlooks the error for first time buyers, and I'm wondering if that happened here. Granted they are overwhelmed with volume this year, but still...

Well, I spoke too soon. Just when we thought we might actually have gotten away with something...
Two weeks later, the Treasury figured it out, the bond was cancelled, and we received the cash back (including interest). Oh well, easy come, easy go.

 

[EA-Sports]

Any idea what the new rate will be in November? Can’t believe that October is almost here.

 

[karluk]

Two weeks later, the Treasury figured it out, the bond was cancelled, and we received the cash back (including interest). Oh well, easy come, easy go.

I hope everyone is pondering the possible future implications of this "cash back (including interest)" treatment of exceeding one's annual limit on i-bond purchases. It seems to me that this is likely to be a favorable way to make early redemptions of i-bonds that are sitting in my gift box. Instead delivering only $10,000 in gifts each year, I can deliver as much from my gift box as I want. The Treasury would presumably figure out that the gift recipient had exceeded the annual purchase limit and refund cash plus interest on the excess. If and when i-bonds cease to offer above market interest rates, I would have a nice exit strategy that would get my money back with no more than the wait that the Treasury takes to refund excess purchases.

 

[braumeister]

I think they would put it right back in your gift box, no?

 

[Dash man]

I hope everyone is pondering the possible future implications of this "cash back (including interest)" treatment of exceeding one's annual limit on i-bond purchases. It seems to me that this is likely to be a favorable way to make early redemptions of i-bonds that are sitting in my gift box. Instead delivering only $10,000 in gifts each year, I can deliver as much from my gift box as I want. The Treasury would presumably figure out that the gift recipient had exceeded the annual purchase limit and refund cash plus interest on the excess. If and when i-bonds cease to offer above market interest rates, I would have a nice exit strategy that would get my money back with no more than the wait that the Treasury takes to refund excess purchases.

They will likely put it back in the gift box.

 

[beowulf]

Any idea what the new rate will be in November? Can’t believe that October is almost here.

Tried looking into my crystal ball, but it said “The future is cloudy.” However, my uneducated guess would be roughly 8%, give or take 1%. Unless it’s not.

 

[karen1972]

Any idea what the new rate will be in November? Can’t believe that October is almost here.

Tipswatch calculates each month when the report comes out. As of July reading it dipped just a from June to 6.1%, we still have 2 more months to go so it could go up/down/sideways, crystal ball is fuzzy. [Edit Note: Chart is if it remained flat]

	Mar-22	Apr-22	May-22	Jun-22	Jul-22	Aug-22	Sep-22
Inflation Index	287.504	289.109	292.296	296.311	296.276	296.276	296.276
Monthly % change		0.56	1.10	1.37	-0.01	0.00	0.00	3.05%
12-month change		8.3	8.6	9.1	8.5	8.3	8.0
I Bond annualized varible rate Nov 1, 2022 to April 30, 2023 6.10%

 

[Gumby]

Any idea what the new rate will be in November? Can’t believe that October is almost here.

If I may promote one of my own posts from August 10th, so far it is 6.10%. Could be more or less depending on CPI changes for August and September. I will continue to update on the day of each CPI release.

Based on todays CPI-U release, the rate reset on November 1, 2022 would be 6.10% APR if there is no further change for the next two months (Aug and Sep). CPI-U actually went down from 296.311 to 296.276 from June to July 2022.

 

[Mulligan]

I think they would put it right back in your gift box, no?

Treasury has maintained the right to restrict future purchases or even close account if abuses occur. So I suspect that is a possible outcome, too.

 

[cyber888]

Once you hit 12 months, you can withdraw your Ibonds.
Who will keep most of their emergency cash in i-Bonds and just withdraw when they need the cash, once you hit 1 year of your initial purchase ? I was thinking about this, considering it may take another 2-3 years before inflation goes back to 4%.

 

[Gumby]

Once you hit 12 months, you can withdraw your Ibonds.
Who will keep most of their emergency cash in i-Bonds and just withdraw when they need the cash, once you hit 1 year of your initial purchase ? I was thinking about this, considering it may take another 2-3 years before inflation goes back to 4%.

That's what the young wife and I are doing. We will hold on to our I-bonds until: A) we need the cash or B) we find a better deal on cash (i.e. - CD rates increase and I-bond rates decrease sufficiently)

 

[Chuckanut]

Once you hit 12 months, you can withdraw your Ibonds.
Who will keep most of their emergency cash in i-Bonds and just withdraw when they need the cash, once you hit 1 year of your initial purchase ? I was thinking about this, considering it may take another 2-3 years before inflation goes back to 4%.

IMO, keeping you emergency cash, stock market crash money, or whatever you call it in inflation protected I-bonds makes a lot of sense.