I Bonds Mega Thread (I Bond Heads Rejoice!)

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dbr
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Re: iBonds @ 7.12%

Post by dbr »

burbank wrote: Wed Dec 01, 2021 1:16 pm
Da5id wrote: Wed Dec 01, 2021 10:52 am You appear to still be implying that the contribution limit is an issue.
I don't need to imply that.  It's clearly an issue for some members of this forum.  Maybe they're outside of the accumulation phase.  Maybe they think the pros and cons are just more favorable for the more tax-advantaged examples you mentioned.

For what it's worth, I think some people do complain about the contribution limits for IRAs too.  I was just offering a theory as to why the limits might discourage people from choosing I-Bonds more than they discourage people from contributing to an IRA.
For any variety of reasons we don't have I bonds. The contribution limits make them pretty much useless now. The reason, of course, is being in retirement with significant assets. The contribution limits also mean those who think I bonds are a screaming buy now should have started accumulating them years ago. That doesn't mean a young investor now should not consider accumulating I bonds as part of their allocation. It is a viable asset.
burbank
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Re: iBonds @ 7.12%

Post by burbank »

dbr wrote: Wed Dec 01, 2021 1:33 pm That doesn't mean a young investor now should not consider accumulating I bonds as part of their allocation. It is a viable asset.
I agree 100%.
SnowBog
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by SnowBog »

Bronco Billy wrote: Wed Dec 01, 2021 12:21 pm
SnowBog wrote: Tue Nov 30, 2021 7:21 pm
If it were me, I'd delete the one in your name and ensure the joint registration is the "preferred". That way you don't accidentally select the wrong one sometime in the future.

Ultimately, your spouse will need their own account. You can't buy bonds for someone else in your account (aka no way to reverse the registration).

Although you can buy as a "gift" for someone else from your account (gift box). They'll stay in your account until you "deliver" them to the recipient - but they'll need an account created to receive the bond(s). So you can purchase (as a gift) in your account while you get spouses account setup (or just wait and buy directly from spouses account - which is what I'd recommend).

Note, you can use the same "bank account" linked to multiple TD accounts.
I use a joint "hub" account - which is what's linked to my individual, my trust, spouses individual, and spouses trust TD accounts (same bank account linked to all 4 TD accounts). You just need the unique TD account setup for spouse.
I went to delete the registration in my name only and got this message...

The following error(s) have occurred:
You cannot delete the original registration created when your TreasuryDirect account was opened.


I got my bond and did go and change the registration to me and my wifes registration and set my Preferred Registration.
Great to hear! :beer

Makes sense you can't delete the original - since it's technically "your" account. But you can (and looks like did) set your "preferred" registration to the one with your spouse, so it's the default going forward!
BogleMelon
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by BogleMelon »

How often does the value of ibonds in the account updated to include the added interest amount? I bought mine in November, I thought this month it will show up with a higher updated value, but it is still showing $10K
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather
BrokerageZelda
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by BrokerageZelda »

BogleMelon wrote: Thu Dec 02, 2021 9:17 am How often does the value of ibonds in the account updated to include the added interest amount? I bought mine in November, I thought this month it will show up with a higher updated value, but it is still showing $10K
Interest on I Bonds is credited at the beginning of every month.

I Bonds less than 5 years from the issue date have a redemption penalty of the last 3 months' interest, so the 'current value' on TD has a three-month lag in displaying the interest that the bonds actually earn. So you'll see November's interest in February, and then around November 2026 you'll see 4 months of interest magically appear at once.

You can check the charts at https://eyebonds.info/ibonds/index.html to see the 'true value' of your I Bonds, without the penalty, on any given future date with a known interest rate.
BogleMelon
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by BogleMelon »

BrokerageZelda wrote: Thu Dec 02, 2021 9:25 am
BogleMelon wrote: Thu Dec 02, 2021 9:17 am How often does the value of ibonds in the account updated to include the added interest amount? I bought mine in November, I thought this month it will show up with a higher updated value, but it is still showing $10K
Interest on I Bonds is credited at the beginning of every month.

I Bonds less than 5 years from the issue date have a redemption penalty of the last 3 months' interest, so the 'current value' on TD has a three-month lag in displaying the interest that the bonds actually earn. So you'll see November's interest in February, and then around November 2026 you'll see 4 months of interest magically appear at once.

You can check the charts at https://eyebonds.info/ibonds/index.html to see the 'true value' of your I Bonds, without the penalty, on any given future date with a known interest rate.
Thank you!
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather
FreddyC
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by FreddyC »

For those who are using these as part of your emergency fund (or CDs for that matter), I recommend considering breaking it up into smaller purchases -- $5k here and $5k of another or even $2.5k x 4. That way, it is not an all or nothing thing to have to break it open. Be sure to understand the limit on the particular device with respect to when it can be accessed. I-Bonds, for instance, can only be cashed in after 1 year (so for your mental accounting, not a good emergency fund replacement until after year 1).
BrokerageZelda
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by BrokerageZelda »

FreddyC wrote: Fri Dec 03, 2021 8:26 am For those who are using these as part of your emergency fund (or CDs for that matter), I recommend considering breaking it up into smaller purchases -- $5k here and $5k of another or even $2.5k x 4. That way, it is not an all or nothing thing to have to break it open. Be sure to understand the limit on the particular device with respect to when it can be accessed. I-Bonds, for instance, can only be cashed in after 1 year (so for your mental accounting, not a good emergency fund replacement until after year 1).
It is almost never an all or nothing thing to break open a savings bond in TreasuryDirect. You can redeem fractional parts of a bond, down to the penny (minimum redemption $25), with reportable interest pro-rated. Even if you have a $10,000 I Bond, you can redeem $100 out of it (after the first year), leaving the remaining $9900 and change in place and earning at the same rate.

Unless you want to do something like split beneficiaries, there is no benefit to purchasing, say, ten $1,000 bonds at the same time when you could have bought a single $10,000 bond.
surfstar
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by surfstar »

FreddyC wrote: Fri Dec 03, 2021 8:26 am For those who are using these as part of your emergency fund (or CDs for that matter), I recommend considering breaking it up into smaller purchases -- $5k here and $5k of another or even $2.5k x 4. That way, it is not an all or nothing thing to have to break it open. Be sure to understand the limit on the particular device with respect to when it can be accessed. I-Bonds, for instance, can only be cashed in after 1 year (so for your mental accounting, not a good emergency fund replacement until after year 1).
Meh - just buy a lump with your EF that sits in cash.

Anyone buying I-bonds has credit cards they can tap, Roth IRA contributions, etc - for a real EMERGENCY. The thing is - people who have EF fund are highly, highly, unlikely to have a financial emergency. We're on Bogleheads.
The only "cash" we have left is a bunch of different 5% $1,000 accounts. I-bonds and taxable would be an EF also, if needed. Pretty sure that most people that are maxing out I-bonds are going to be just fine.
cork
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by cork »

surfstar wrote: Fri Dec 03, 2021 9:47 am
FreddyC wrote: Fri Dec 03, 2021 8:26 am For those who are using these as part of your emergency fund (or CDs for that matter), I recommend considering breaking it up into smaller purchases -- $5k here and $5k of another or even $2.5k x 4. That way, it is not an all or nothing thing to have to break it open. Be sure to understand the limit on the particular device with respect to when it can be accessed. I-Bonds, for instance, can only be cashed in after 1 year (so for your mental accounting, not a good emergency fund replacement until after year 1).
Meh - just buy a lump with your EF that sits in cash.

Anyone buying I-bonds has credit cards they can tap, Roth IRA contributions, etc - for a real EMERGENCY. The thing is - people who have EF fund are highly, highly, unlikely to have a financial emergency. We're on Bogleheads.
The only "cash" we have left is a bunch of different 5% $1,000 accounts. I-bonds and taxable would be an EF also, if needed. Pretty sure that most people that are maxing out I-bonds are going to be just fine.
Where do you get 5% on $1000?
surfstar
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by surfstar »

cork wrote: Fri Dec 03, 2021 11:03 am
surfstar wrote: Fri Dec 03, 2021 9:47 am
FreddyC wrote: Fri Dec 03, 2021 8:26 am For those who are using these as part of your emergency fund (or CDs for that matter), I recommend considering breaking it up into smaller purchases -- $5k here and $5k of another or even $2.5k x 4. That way, it is not an all or nothing thing to have to break it open. Be sure to understand the limit on the particular device with respect to when it can be accessed. I-Bonds, for instance, can only be cashed in after 1 year (so for your mental accounting, not a good emergency fund replacement until after year 1).
Meh - just buy a lump with your EF that sits in cash.

Anyone buying I-bonds has credit cards they can tap, Roth IRA contributions, etc - for a real EMERGENCY. The thing is - people who have EF fund are highly, highly, unlikely to have a financial emergency. We're on Bogleheads.
The only "cash" we have left is a bunch of different 5% $1,000 accounts. I-bonds and taxable would be an EF also, if needed. Pretty sure that most people that are maxing out I-bonds are going to be just fine.
Where do you get 5% on $1000?
Kinda OT, but look into DCU, Blue FCU, Brinks, Netspend - not sure if Brinks and Netspend still have the same offer for new people? Had those a few years now. Some require monthly deposits or quarterly - but $1 satisfies it.
You'll find some info on BH if you search or on the various websites that track CC rewards and deposit accounts.

It is a slight hassle, but once they're open and setup, they don't require maintenance effort until you pull out the interest. Most BHs don't think $1k account moves the needle enough, but between DW and I we have $14k in those type of accounts.
:sharebeer
cork
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by cork »

Sorry to take it OT, but thank you for the reply!
After maxing out I Bonds and IRA contribution, DW and I are like you I guess. 5% is 5%, and don't mind a little work and research to get it.
Thank you
:sharebeer
tj
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by tj »

surfstar wrote: Fri Dec 03, 2021 11:35 am
cork wrote: Fri Dec 03, 2021 11:03 am
surfstar wrote: Fri Dec 03, 2021 9:47 am
FreddyC wrote: Fri Dec 03, 2021 8:26 am For those who are using these as part of your emergency fund (or CDs for that matter), I recommend considering breaking it up into smaller purchases -- $5k here and $5k of another or even $2.5k x 4. That way, it is not an all or nothing thing to have to break it open. Be sure to understand the limit on the particular device with respect to when it can be accessed. I-Bonds, for instance, can only be cashed in after 1 year (so for your mental accounting, not a good emergency fund replacement until after year 1).
Meh - just buy a lump with your EF that sits in cash.

Anyone buying I-bonds has credit cards they can tap, Roth IRA contributions, etc - for a real EMERGENCY. The thing is - people who have EF fund are highly, highly, unlikely to have a financial emergency. We're on Bogleheads.
The only "cash" we have left is a bunch of different 5% $1,000 accounts. I-bonds and taxable would be an EF also, if needed. Pretty sure that most people that are maxing out I-bonds are going to be just fine.
Where do you get 5% on $1000?
Kinda OT, but look into DCU, Blue FCU, Brinks, Netspend - not sure if Brinks and Netspend still have the same offer for new people? Had those a few years now. Some require monthly deposits or quarterly - but $1 satisfies it.
You'll find some info on BH if you search or on the various websites that track CC rewards and deposit accounts.

It is a slight hassle, but once they're open and setup, they don't require maintenance effort until you pull out the interest. Most BHs don't think $1k account moves the needle enough, but between DW and I we have $14k in those type of accounts.
:sharebeer
Don't forget Service Credit Union. 5% on $500 and 3% on $3000.
Kinkajou82
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Kinkajou82 »

What are the major use cases for buying I Bonds as a gift? Are there any standout benefits for doing this, or is this just an esoteric old-timey way to give very young children money for college costs?
SnowBog
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by SnowBog »

Kinkajou82 wrote: Sun Dec 05, 2021 12:30 pm What are the major use cases for buying I Bonds as a gift? Are there any standout benefits for doing this, or is this just an esoteric old-timey way to give very young children money for college costs?
Some have reported using gifts to "front load" I Bond purchases. For example, instead of being limited to $10k per person per year, conceptually a married couple could buy $10k for themselves ($20k) and then $100k (10x $10k) as "gifts" to each other. They can only "deliver" (or buy) $10k/year - but this would essentially let you buy many years worth at once.

For college education as noted, although they may be benefits to gifting them to the parents of the child instead. The parents can potentially (if income is low enough) redeem them tax free for college expenses for their child. But if in the childs name would have to pay the taxes.

Some apparently buy for their own children, presumably to cover future costs (college, weddings, etc.).
Novice2020
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Novice2020 »

I've been following this, and the other, I Bond threads here. I know there have been different reports on whether there is a backdoor path to getting around the $10,000 a year purchase limit by purchasing additional $10,000 batches as gifts for others.

Is there any definite clarity on this one way or the other?
absolute zero
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by absolute zero »

Novice2020 wrote: Sun Dec 05, 2021 2:36 pm I've been following this, and the other, I Bond threads here. I know there have been different reports on whether there is a backdoor path to getting around the $10,000 a year purchase limit by purchasing additional $10,000 batches as gifts for others.

Is there any definite clarity on this one way or the other?
Are you asking whether gifts can be purchased for others without counting towards your annual limit? If so, the TD website answers this pretty clearly.

https://treasurydirect.gov/indiv/resea ... y.htm#much
acegolfer
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by acegolfer »

Novice2020 wrote: Sun Dec 05, 2021 2:36 pm I've been following this, and the other, I Bond threads here. I know there have been different reports on whether there is a backdoor path to getting around the $10,000 a year purchase limit by purchasing additional $10,000 batches as gifts for others.

Is there any definite clarity on this one way or the other?
You can purchase I-bond as gift to others. But it will count towards their $10k limit. And once gifted, it's theirs to spend not yours. So you can't backdoor to you.
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Nate79
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Nate79 »

acegolfer wrote: Mon Dec 06, 2021 7:03 am
Novice2020 wrote: Sun Dec 05, 2021 2:36 pm I've been following this, and the other, I Bond threads here. I know there have been different reports on whether there is a backdoor path to getting around the $10,000 a year purchase limit by purchasing additional $10,000 batches as gifts for others.

Is there any definite clarity on this one way or the other?
You can purchase I-bond as gift to others. But it will count towards their $10k limit. And once gifted, it's theirs to spend not yours. So you can't backdoor to you.
Just to add that the gift will count towards their $10k limit in the year that you give them the gift, not in the year that you purchase the I-bond for them.
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theac
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by theac »

Is it possible to deposit let's say $10,000 from one of your bank accounts that isn't linked to your TD account?

And to have it directed into your TD No-Interest C of I, then once the funds show up there, purchase your $10,000 I-Bond from your C of I??

I know to redeem an I-Bond it must go to your linked bank account, but for I-Bond purchasing purposes only (i.e. depositing funds into TD Acct), can it be from one of your accounts that isn't linked?
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Eager for FIRE
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Eager for FIRE »

SnowBog wrote: Sun Dec 05, 2021 1:46 pm
Kinkajou82 wrote: Sun Dec 05, 2021 12:30 pm What are the major use cases for buying I Bonds as a gift? Are there any standout benefits for doing this, or is this just an esoteric old-timey way to give very young children money for college costs?
Some have reported using gifts to "front load" I Bond purchases. For example, instead of being limited to $10k per person per year, conceptually a married couple could buy $10k for themselves ($20k) and then $100k (10x $10k) as "gifts" to each other. They can only "deliver" (or buy) $10k/year - but this would essentially let you buy many years worth at once.

For college education as noted, although they may be benefits to gifting them to the parents of the child instead. The parents can potentially (if income is low enough) redeem them tax free for college expenses for their child. But if in the childs name would have to pay the taxes.

Some apparently buy for their own children, presumably to cover future costs (college, weddings, etc.).
Yes, we did this this year to front load and overlap the 1 year prohibition on selling/cashing them in if needed .

Someone ELSE has to purchase the gifts in your name, for you. And hold each $10k in their gift outbox, accumulating interest immediately. Then slowly transfer $10k/year to you in years you do NOT purchase any I-bonds.

A family member and I each purchased our own $10k. Then he purchased 2 gifts for me and I did the same for him.
In Jan 2022 we will each transfer the first gift to the other. Then repeat in Jan 2023.

So we each effectively bought $30k, all growing interest, all with the same 1 year restriction expiration date. So late 2022 we could sell/cash in 2 of the purchases each (if we needed/want to). The 3rd purchase would not yet be transferred yet, until Jan 2023. But then we could if needed immediately sell/cash that in as well.

Nothing sketchy/illegal. Just a way to "front load" the 1 year window & begin earnings now, versus waiting til Jan 2022, then Jan 2023 to start each 1 year restriction and earnings.

It's not ideal, but slightly helpful for some

Note if buying I-bonds for children THEY own them. And bizarrely if you purchased them now, they CANNOT ever cash them in TAX FREE for college because THEY were NOT 24 years old when the I-bond was originally purchased. Makes no sense. But that's my understanding.
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HueyLD
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by HueyLD »

“ Is it possible to deposit let's say $10,000 from one of your bank accounts that isn't linked to your TD account?

And to have it directed into your TD No-Interest C of I, then once the funds show up there, purchase your $10,000 I-Bond from your C of I??

I know to redeem an I-Bond it must go to your linked bank account, but for I-Bond purchasing purposes only (i.e. depositing funds into TD Acct), can it be from one of your accounts that isn't linked?”

“ ACH Credits

You may receive incoming credit transactions if you schedule regular deductions with your employer or electronic deposits with your financial institution. All incoming credits result in the purchase of a Zero-Percent C of I within your account. You then schedule the purchase of securities in TreasuryDirect using your C of I as the source of funds.

To begin receiving credits in your account, give your payroll office or financial institution the following information for scheduling electronic deposits in your TreasuryDirect account:

TreasuryDirect's Routing Number 051736158;
Your ten-digit TreasuryDirect account number, without hyphens (Example: A123456789);
Amount of the deposit;
Frequency of the deposit (if applicable); and
Your TreasuryDirect account can be marked as a type 22 (checking) or 32 (savings). We will accept either type.

When you purchase a Zero-Percent C of I, it will not earn interest. It is only used to fund the purchase of other eligible securities.”

https://www.treasurydirect.gov/indiv/he ... ptions.htm
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theac
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by theac »

HueyLD wrote: Wed Dec 08, 2021 10:17 am
“ ACH Credits

You may receive incoming credit transactions if you schedule regular deductions with your employer or electronic deposits with your financial institution. All incoming credits result in the purchase of a Zero-Percent C of I within your account. You then schedule the purchase of securities in TreasuryDirect using your C of I as the source of funds.

To begin receiving credits in your account, give your payroll office or financial institution the following information for scheduling electronic deposits in your TreasuryDirect account:

TreasuryDirect's Routing Number 051736158;
Your ten-digit TreasuryDirect account number, without hyphens (Example: A123456789);
Amount of the deposit;
Frequency of the deposit (if applicable); and
Your TreasuryDirect account can be marked as a type 22 (checking) or 32 (savings). We will accept either type.

When you purchase a Zero-Percent C of I, it will not earn interest. It is only used to fund the purchase of other eligible securities.”

https://www.treasurydirect.gov/indiv/he ... ptions.htm
Yes I saw that on their site but wasn't clear to me if it meant only regularly scheduled payments or if just a single transaction would work also.
Of course it does say:

"Frequency of the deposit (if applicable)"

So does sound OK for a single transfer.
Just curious if anyone has done it, and how it worked out.
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razorbacker
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Couple I Bond Questions

Post by razorbacker »

[Thread merged into here --admin LadyGeek]

Purchasing I Bonds through Treasury Direct requires linking a checking or saving account. Can I link to my Fidelity Brokerage account which has checking or will I need to link one of my local bank accounts? Also, when you do pay income taxes on I Bond interest? Annually or at maturity?
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Re: Couple I Bond Questions

Post by shess »

razorbacker wrote: Wed Dec 08, 2021 10:45 pm Purchasing I Bonds through Treasury Direct requires linking a checking or saving account. Can I link to my Fidelity Brokerage account which has checking or will I need to link one of my local bank accounts? Also, when you do pay income taxes on I Bond interest? Annually or at maturity?
I don't know what the precise rules are on linked accounts, since I set mine up many years ago, but my linked account is my TD Ameritrade account. I suspect it just has to be ACH-capable.

You can choose to have income taxes come due when you cash in, or as accrued:
https://www.treasurydirect.gov/indiv/re ... nsider.htm
I think once you decide on the accrual method, you can't go back, and I think you have to make the choice for all of your Treasury Direct holdings.
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Re: Couple I Bond Questions

Post by SnowBog »

For more info, recommend checking out the I Bond Manifesto viewtopic.php?p=6241816
SuperTrooper87
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by SuperTrooper87 »

Read this article earlier about rate increases in Q3 of 2022. Does that mean the rate for of I bonds may have a fixed interest of above 0%?

If so, does it make more sense to hold off on Jan 2022 purchase until later in the year to try and capture that rate?

https://www.foxbusiness.com/economy/fed ... uters-poll
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by z3r0c00l »

SuperTrooper87 wrote: Thu Dec 09, 2021 6:30 am Read this article earlier about rate increases in Q3 of 2022. Does that mean the rate for of I bonds may have a fixed interest of above 0%?

If so, does it make more sense to hold off on Jan 2022 purchase until later in the year to try and capture that rate?

https://www.foxbusiness.com/economy/fed ... uters-poll
Unlikely to get a fixed rate above 0. Don't miss out on the high interest rate now.
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SuperTrooper87
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by SuperTrooper87 »

Makes sense. Plus if this happens it would likely be reflected on the nov change so I could still capture it in 2023 I suppose.
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life in slices
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by life in slices »

SuperTrooper87 wrote: Thu Dec 09, 2021 6:30 am Read this article earlier about rate increases in Q3 of 2022. Does that mean the rate for of I bonds may have a fixed interest of above 0%?

If so, does it make more sense to hold off on Jan 2022 purchase until later in the year to try and capture that rate?

https://www.foxbusiness.com/economy/fed ... uters-poll
Good read and rationalization of buying iBonds next year before May 1
https://tipswatch.com/2021/12/05/when-i ... y-to-rise/
strongboy2005
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by strongboy2005 »

Ok can I buy my wife $200,000 in I bonds and she buy me $200,000 in I bonds? Then, we each gift the other $10,000 per year for the next 20 years, but that $400,000 grows the whole time, right?
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by OpenMinded1 »

OpenMinded1 wrote: Sun Nov 28, 2021 7:45 am
ilan1h wrote: Sat Nov 27, 2021 1:57 pm TreasuryDirect is truly a quirky website. While opening a new account for ibonds I made a "tiny" mistake entering a routing number. I then received a message from them saying that I could not continue until I filled out a form, took the form to my bank, had an "officer" certify the form etc. I found this to be rather extreme and sent them a message to that effect. A few days letter I received two messages from them: the first said that there's nothing to be done about it and I would have to go the bank with the form and have it certified and wait several weeks to try again. The second message was much sunnier and breezily advised me to simply ignore the first incorrect account and just establish a second account which I could duly fund. It concluded by saying that I could simply send them an email requesting the first account be closed. Two messages, completely different and on the same day. I went with the second message and it worked like a charm. The account was funded without any problem whatsoever and I sent them a request to shut down the first account.
Just a heads up, I planned to buy additional I-bonds at Treasury Direct near the end of the month. However, I switched banks since the last time I purchased them. As a result of this switch, I had to complete a form and sign it in the presence of a bank officer, so he could do a medallion signature guaranty. (The instructions said a notarized signature was unacceptable.) I then had to mail the completed form to the Bureau of Fiscal Service in MN. Now I'm supposed to just wait until I get an email saying I can now buy the Bonds thru Treasury Direct using the bank where I currently have the funds. (I guess I could log into the site from time to time to see if my current bank account is now listed as an account I can draw from to purchase the Bonds.)
Update: As of 12/9, I'm still waiting. Mailed the form on 11/22. Got an email on 12/2 saying they received it, and would let me know if they needed anything else. I wonder how long this usually takes if everything submitted is in order.
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HueyLD
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by HueyLD »

I think the Treasury Retail employees are probably snowed under with all the new customers they have due to the eye popping 7.12% rate.

It could take a while, and don’t be surprised or get mad because it might take a few months.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by SonnyDMB »

OpenMinded1 wrote: Thu Dec 09, 2021 11:29 am
Update: As of 12/9, I'm still waiting. Mailed the form on 11/22. Got an email on 12/2 saying they received it, and would let me know if they needed anything else. I wonder how long this usually takes if everything submitted is in order.
I had a 5444 medallion signature that also showed received 12/2. I emailed them last night and they already responded. Said they are currently averaging 11-12 business days for that form.

I’m almost certain I had to do that form because I changed email address couple years ago and when trying to open trust account it caused the need for medallion signature. I may have them close account and I recreate if needed using old email address.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by OpenMinded1 »

SonnyDMB wrote: Thu Dec 09, 2021 2:25 pm
OpenMinded1 wrote: Thu Dec 09, 2021 11:29 am
Update: As of 12/9, I'm still waiting. Mailed the form on 11/22. Got an email on 12/2 saying they received it, and would let me know if they needed anything else. I wonder how long this usually takes if everything submitted is in order.
I had a 5444 medallion signature that also showed received 12/2. I emailed them last night and they already responded. Said they are currently averaging 11-12 business days for that form.

I’m almost certain I had to do that form because I changed email address couple years ago and when trying to open trust account it caused the need for medallion signature. I may have them close account and I recreate if needed using old email address.
Thanks for the info. Maybe there's still hope that I'll be able to buy some more by the end of the year.
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Re: Couple I Bond Questions

Post by razorbacker »

Linked to some good info on I bonds, thanks for posting.
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Re: Couple I Bond Questions

Post by JoMoney »

I had previously linked my Fidelity CMA (brokerage) account with Treasury Direct. Had no problems with that aspect of it.
The problem I had in more recent times is to add or change a bank with TD they've required a form to be filled out with a signature guarantee stamp.
Fidelity has branch offices, some of which used to offer Medallion Signature Guarantees for transferring assets to Fidelity... I'm not sure if they still do or if they would assist with providing MSG on a form to link Treasury Direct to a Fidelity account.
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Re: Couple I Bond Questions

Post by SnowBog »

JoMoney wrote: Thu Dec 09, 2021 10:30 pm I had previously linked my Fidelity CMA (brokerage) account with Treasury Direct. Had no problems with that aspect of it.
The problem I had in more recent times is to add or change a bank with TD they've required a form to be filled out with a signature guarantee stamp.
Fidelity has branch offices, some of which used to offer Medallion Signature Guarantees for transferring assets to Fidelity... I'm not sure if they still do or if they would assist with providing MSG on a form to link Treasury Direct to a Fidelity account.
This has nothing to do with Fidelity.

TreasuryDirect requires verification of you attempt to change the originally setup bank. While many see it as inconvenient, I see it as a strong protection to ensue no one can easily access your account and walk off with your money.

Or to avoid, just make sure to link an account you plan to keep for a long time.
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Re: Couple I Bond Questions

Post by JoMoney »

SnowBog wrote: Thu Dec 09, 2021 10:38 pm
JoMoney wrote: Thu Dec 09, 2021 10:30 pm I had previously linked my Fidelity CMA (brokerage) account with Treasury Direct. Had no problems with that aspect of it.
The problem I had in more recent times is to add or change a bank with TD they've required a form to be filled out with a signature guarantee stamp.
Fidelity has branch offices, some of which used to offer Medallion Signature Guarantees for transferring assets to Fidelity... I'm not sure if they still do or if they would assist with providing MSG on a form to link Treasury Direct to a Fidelity account.
This has nothing to do with Fidelity.

TreasuryDirect requires verification of you attempt to change the originally setup bank. While many see it as inconvenient, I see it as a strong protection to ensue no one can easily access your account and walk off with your money.

Or to avoid, just make sure to link an account you plan to keep for a long time.
OP's question is specifically asking about linking to a Fidelity account.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
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Re: Couple I Bond Questions

Post by SnowBog »

Your post - at least to my read - seemed to imply a downside to linking to a Fidelity account.

Maybe I misread. But I was simply trying to point out that the "need medallion signature to change accounts" has nothing to do with Fidelity. It had to do with changing accounts. Would have been the same regardless of the original account you linked.
Last edited by SnowBog on Fri Dec 10, 2021 12:47 pm, edited 1 time in total.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by acegolfer »

BLS published 11/2021 CPI-U. https://www.bls.gov/news.release/cpi.nr0.htm

"The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.8 percent
in November on a seasonally adjusted basis after rising 0.9 percent in October,
the U.S. Bureau of Labor Statistics reported today. Over the last 12 months,
the all items index increased 6.8 percent before seasonal adjustment."

If this trend continues, the next 6-month rate could be close to 10%.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by OpenMinded1 »

OpenMinded1 wrote: Thu Dec 09, 2021 11:29 am
OpenMinded1 wrote: Sun Nov 28, 2021 7:45 am
ilan1h wrote: Sat Nov 27, 2021 1:57 pm TreasuryDirect is truly a quirky website. While opening a new account for ibonds I made a "tiny" mistake entering a routing number. I then received a message from them saying that I could not continue until I filled out a form, took the form to my bank, had an "officer" certify the form etc. I found this to be rather extreme and sent them a message to that effect. A few days letter I received two messages from them: the first said that there's nothing to be done about it and I would have to go the bank with the form and have it certified and wait several weeks to try again. The second message was much sunnier and breezily advised me to simply ignore the first incorrect account and just establish a second account which I could duly fund. It concluded by saying that I could simply send them an email requesting the first account be closed. Two messages, completely different and on the same day. I went with the second message and it worked like a charm. The account was funded without any problem whatsoever and I sent them a request to shut down the first account.
Just a heads up, I planned to buy additional I-bonds at Treasury Direct near the end of the month. However, I switched banks since the last time I purchased them. As a result of this switch, I had to complete a form and sign it in the presence of a bank officer, so he could do a medallion signature guaranty. (The instructions said a notarized signature was unacceptable.) I then had to mail the completed form to the Bureau of Fiscal Service in MN. Now I'm supposed to just wait until I get an email saying I can now buy the Bonds thru Treasury Direct using the bank where I currently have the funds. (I guess I could log into the site from time to time to see if my current bank account is now listed as an account I can draw from to purchase the Bonds.)
Update: As of 12/9, I'm still waiting. Mailed the form on 11/22. Got an email on 12/2 saying they received it, and would let me know if they needed anything else. I wonder how long this usually takes if everything submitted is in order.
Update: The account change was made on 12/10. So the process from the time I mailed it until the new account was added took 18 days. It took about 13 days subtracting out the time it took to get there via mail.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by LadyGeek »

I merged razorbacker's thread into the ongoing discussion.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by HueyLD »

acegolfer wrote: Fri Dec 10, 2021 11:47 am BLS published 11/2021 CPI-U. https://www.bls.gov/news.release/cpi.nr0.htm

"The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.8 percent
in November on a seasonally adjusted basis after rising 0.9 percent in October,
the U.S. Bureau of Labor Statistics reported today. Over the last 12 months,
the all items index increased 6.8 percent before seasonal adjustment."

If this trend continues, the next 6-month rate could be close to 10%.
Not necessarily. The next inflation adjustment will be based on the change from Sep. 2021 to March 2022. And the change since Sep. 2021 has been low at 1.326%, or an annualized rate of 2.65%.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by acegolfer »

HueyLD wrote: Fri Dec 10, 2021 1:01 pm
Not necessarily. The next inflation adjustment will be based on the change from Sep. 2021 to March 2022. And the change since Sep. 2021 has been low at 1.326%, or an annualized rate of 2.65%.
Can you explain how you got those 2 numbers and the source?
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by HueyLD »

acegolfer wrote: Fri Dec 10, 2021 1:03 pm
HueyLD wrote: Fri Dec 10, 2021 1:01 pm
Not necessarily. The next inflation adjustment will be based on the change from Sep. 2021 to March 2022. And the change since Sep. 2021 has been low at 1.326%, or an annualized rate of 2.65%.
Can you explain how you got those 2 numbers and the source?
Go to bls.gov

https://www.bls.gov/cpi/tables/suppleme ... 202111.pdf
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by acegolfer »

HueyLD wrote: Fri Dec 10, 2021 1:05 pm
acegolfer wrote: Fri Dec 10, 2021 1:03 pm
HueyLD wrote: Fri Dec 10, 2021 1:01 pm
Not necessarily. The next inflation adjustment will be based on the change from Sep. 2021 to March 2022. And the change since Sep. 2021 has been low at 1.326%, or an annualized rate of 2.65%.
Can you explain how you got those 2 numbers and the source?
Go to bls.gov

https://www.bls.gov/cpi/tables/suppleme ... 202111.pdf
(277.948/274.310)^6 -1 = 8.226%
Or ((277.948/274.310)^3-1)*2 = 8.063% (extract to 6 months and double)
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by HueyLD »

(277.948 - 274.310) / 274.310 x 2 = 2.65%.

For the sake of simple discussion, let’s assume that the CPI-U remains constant from Nov. 2021 to March 2022 because nobody knows what the actual inflation may be for March 2022. Even economists who make predictions all the time get it wrong more than 90% of the time. :)
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by acegolfer »

HueyLD wrote: Fri Dec 10, 2021 1:22 pm (277.948 - 274.310) / 274.310 x 2 = 2.65%.

For the sake of simple discussion, let’s assume that the CPI-U remains constant from Nov. 2021 to March 2022 because nobody knows what the actual inflation may be for March 2022. Even economists who make predictions all the time get it wrong more than 90% of the time. :)
If the CPI-U stays at 277.948 for the next 4 months, then your calculation is correct. Next 6 month rate will be 2.65%. But I highly doubt it.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by tipswatcher »

acegolfer wrote: Fri Dec 10, 2021 1:27 pm
If the CPI-U stays at 277.948 for the next 4 months, then your calculation is correct. Next 6 month rate will be 2.65%. But I highly doubt it.
Here's an extremely nerdy I Bond quirk: Since the Treasury uses the 6-month inflation rate rounded to two decimal points, then doubles that to determine the inflation-adjusted variable rate, that rate will always have a positive number in the hundredth decimal spot. So ... 2.66% ... not 2.65%. (I learned this the hard way, by getting it wrong in a post.)

On this topic, though, I'm expecting (but not predicting) that inflation will remain relatively high through March 2022, so we could get a 6-month inflation rate matching the last period's 3.56%, or even higher. Inflation might begin cooling down a bit later in spring 2022, when year-ago numbers will be much higher. But predicting future inflation will make you look like a fool, almost every time.
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