TreasuryDirect I Bond general question

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guppyguy
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Joined: Tue Jan 30, 2018 3:24 pm

TreasuryDirect I Bond general question

Post by guppyguy »

When does the interest rate update on TreasuryDirect to reflect the latest interest rate?

For example, I purchased $10K worth in February when the inflation rate was 1.68%. When I look under security detail online it is still showing 1.68%, not the current 3.54% that is in effect from May thru October.
Thesaints
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Re: TreasuryDirect I Bond general question

Post by Thesaints »

guppyguy wrote: Wed May 12, 2021 3:34 pm When does the interest rate update on TreasuryDirect to reflect the latest interest rate?

For example, I purchased $10K worth in February when the inflation rate was 1.68%. When I look under security detail online it is still showing 1.68%, not the current 3.54% that is in effect from May thru October.
You have to wait 6 months from the issuance date. August, in your case.
Topic Author
guppyguy
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Re: TreasuryDirect I Bond general question

Post by guppyguy »

Thesaints wrote: Wed May 12, 2021 3:35 pm
guppyguy wrote: Wed May 12, 2021 3:34 pm When does the interest rate update on TreasuryDirect to reflect the latest interest rate?

For example, I purchased $10K worth in February when the inflation rate was 1.68%. When I look under security detail online it is still showing 1.68%, not the current 3.54% that is in effect from May thru October.
You have to wait 6 months from the issuance date. August, in your case.
I guess I need a refresher on when interest rates are applicable for these. I thought that all I-Bonds would receive the new 3.54%. Will research more, thanks!
BrokerageZelda
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Re: TreasuryDirect I Bond general question

Post by BrokerageZelda »

The interest rate on an I Bond updates every six months, in the month of original purchase and the sixth month after that.

The 'current rate' for I Bonds changes in May and November, and so a new I Bond purchased in May will get 3.54% through October. However, your interest rate changes to the current 'current rate' every February and August, and therefore your interest rate from August through January will be set to whatever the 'current rate' in August is, which is 3.54%. Until August 1, you earn whatever the 'current rate' this past February was, which is 1.68%.

You will get 3.54% for 6 months, just not the same 6 months as everyone else.
FactualFran
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Re: TreasuryDirect I Bond general question

Post by FactualFran »

All I-Bonds that were issued with a fixed rate of 0% will have a composite rate of 3.54% for six months staring with the month between May 2021 and October 2021 that is a whole number of six-month periods from the issue month of the bond. I-Bonds with a fixed rate higher than 0% will have a composite rate higher than 3.54% for the six months they use the inflation rate for I-Bonds announced May 2021.

See When does my bond change rates? at the Treasury Direct web site.
Topic Author
guppyguy
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Re: TreasuryDirect I Bond general question

Post by guppyguy »

Got it, thank you!
raveon
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Re: TreasuryDirect I Bond general question

Post by raveon »

Some additional questions:

1. Is it possible to buy I bonds for multiple members using the same account? I purchased mine in Feb, but I would like to purchase for my spouse now. If not, is there a way to link the account so one doesn't have to keep track of multiple accounts? The Treasury Direct website is not that user friendly.

2. Is the balance on the bond also updated every 6 months like the interest rate?
Makefile
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Re: TreasuryDirect I Bond general question

Post by Makefile »

raveon wrote: Wed May 12, 2021 4:07 pm 2. Is the balance on the bond also updated every 6 months like the interest rate?
The balance updates monthly, but for bonds "younger" than five years, the balance listed in TreasuryDirect reflects the penalty of three months' interest for an early redemption.
Broken Man 1999
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Re: TreasuryDirect I Bond general question

Post by Broken Man 1999 »

raveon wrote: Wed May 12, 2021 4:07 pm Some additional questions:

1. Is it possible to buy I bonds for multiple members using the same account? I purchased mine in Feb, but I would like to purchase for my spouse now. If not, is there a way to link the account so one doesn't have to keep track of multiple accounts? The Treasury Direct website is not that user friendly.

2. Is the balance on the bond also updated every 6 months like the interest rate?
Yes. I have several registrations at TD. All are displayed when I sign in. When I want to buy a bond for X, I just use the dropdown box listing my registrations and select X.

Very easy. Hardest part to using the TD website (at least for me) is remembering to not use my browser back button to navigate.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go." - Mark Twain
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HueyLD
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Re: TreasuryDirect I Bond general question

Post by HueyLD »

raveon wrote: Wed May 12, 2021 4:07 pm Some additional questions:

1. Is it possible to buy I bonds for multiple members using the same account? I purchased mine in Feb, but I would like to purchase for my spouse now. If not, is there a way to link the account so one doesn't have to keep track of multiple accounts? The Treasury Direct website is not that user friendly.
Purchase gift bonds for your spouse in your own account.

https://www.treasurydirect.gov/indiv/re ... s_1204.htm
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