single2019
Recycles dryer sheets
- Joined
- Sep 13, 2021
- Messages
- 95
Chances of that happening are somewhere between zero to nil.
Eating Crow.
This was in response to increase in fixed component of the interest ?
Chances of that happening are somewhere between zero to nil.
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.
correct but you can buy new ones in January for the 2023 year and get the .4% fixed on that at the new rate (6.89 total) I believe.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 et tgefor the duration of our I-Bonds?
I'm not complaining (much). I'm just trying to confirm my understanding.
correct but you can buy new ones in January for the 2023 year and get the .4% fixed on that at the new rate (6.89 total) I believe.
I wonder if the fixed rate is to make up for the outages/slowdowns that limited bond purchases in October ?
TrueIf you have the free cash now you could buy gift bonds for someone else which would have a 0.4% fixed rate and deliver them at some time in the future - you don't have to wait until next year to do that.
So many possibilities
On the new Nov 1st rate of 6.89%, there is a fixed rate of 0.4%. So does that mean for older bonds previously purchased, they will get 6.49% plus any fixed rate (if any) that those bonds have? If they had no fixed rate, they will get just the 6.49%, right?
Having any fixed rate component at all is a great and welcome surprise. I’ve been buying since 2015 and all but two of those bonds sport a 0.0% fixed rate.
Seems like it is worthwhile to make an extra $5K estimated tax payment to buy an extra $5K of I-Bonds with the refund, isn't it?
Good thinking, I was wondering about that. This would be my first time getting I Bonds through our tax return. As the fixed rate might change again next May, how certain can you be that bonds are issued in April?
I guess what I'm asking is, with an electronically submitted tax return how quickly are the bonds issued?
Does anyone have any experience to share?
Good thinking, I was wondering about that. This would be my first time getting I Bonds through our tax return. As the fixed rate might change again next May, how certain can you be that bonds are issued in April?
I guess what I'm asking is, with an electronically submitted tax return how quickly are the bonds issued?
Does anyone have any experience to share?
If you get a physical bond through your tax return, can’t you just hold on to it and cash it at a bank when you want to? Not sure of the value of converting it to a digital bond through TD.
While I think the fixed rate is GREAT, it is surprising at first.
Then I realized it means maybe they feel they need to improve the appeal as people just bought a TON of I-bonds and many are now tapped out. So to squeeze out some extra funds they have made it more appealing.
We are holding onto our paper bond. Seems a pain to convert it, along with potential loss in the mail system.
No idea about cashing it in.
This year I filed electronically on April 5 and received my paper IBonds by the end of April.
Seems like it is worthwhile to make an extra $5K estimated tax payment to buy an extra $5K of I-Bonds with the refund, isn't it?
That makes sense. No need to tie up any more than needed. I had no issues converting the paper bonds last year.Yes. What I did last year was that I did my tax return. Then I made an estimated payment applied to 2021 taxes to bring my refund to $5,000 and once the payment clead my bank I electronically filed my return requesting that my $5,000 refund be in I Bonds. When I received the I Bonds in the mail I added them to my lectronic account and mailed them to the UST. Easy peasy.
When the fixed rate was 1% and the inflation part was 2-3%, the fixed rate was enough to pay for taxes on the inflation part, so that you break even or have a teeny bit of gain after tax and inflation.
With the fixed rate at 0.4% and the inflation at 6-7%, you still lose big after taxes.
Sorry to be the party pooper.