I Bonds Mega Thread (I Bond Heads Rejoice!)

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
tj
Posts: 9368
Joined: Wed Dec 23, 2009 11:10 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by tj »

Mel Lindauer wrote: Thu Aug 11, 2022 10:22 am Did anyone notice this part of the above TD response?

. . . while continuing ongoing work on a comprehensive modernization.

They are, indeed, working on updating the site.
We can only hope its more effective than what the TSP did.
User avatar
Mel Lindauer
Moderator
Posts: 35782
Joined: Mon Feb 19, 2007 7:49 pm
Location: Daytona Beach Shores, Florida
Contact:

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Mel Lindauer »

tj wrote: Thu Aug 11, 2022 3:41 pm
Mel Lindauer wrote: Thu Aug 11, 2022 10:22 am Did anyone notice this part of the above TD response?

. . . while continuing ongoing work on a comprehensive modernization.

They are, indeed, working on updating the site.
We can only hope its more effective than what the TSP did.
Hopefully it will be a huge improvement that will keep folks from getting locked out when setting up their account by doing simple things like hitting the backspace. I'm encouraged that they're no longer requiring the very-hard-to-get medallion signature for things where it was required in the past.
Best Regards - Mel | | Semper Fi
Samosa22
Posts: 501
Joined: Tue Dec 31, 2019 9:51 am

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Samosa22 »

When does the earned interest amount show up in TD account? The purchase date of my I bond is 07-01-2022 but I don't see July's interest added to my account.
I am aware that the interest compounds semi-annually, but I thought it accrues monthly so was expecting to see July's interest.
Diversification is protection against ignorance - WB.
alluringreality
Posts: 1512
Joined: Tue Nov 12, 2019 9:59 am

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by alluringreality »

Samosa22 wrote: Thu Aug 11, 2022 4:41 pm When does the earned interest amount show up in TD account?
There is a penalty of the most recent three months interest for redeeming savings bonds before 5 years. Forum discussion indicates that the first increase will appear in the the fourth month following your purchase. Basically your holding period needs to exceed the penalty period. You should have earned interest showing November 1, and the next increase is December 1.

What is the penalty if I cash my bond during the first 5 years?
If you cash a bond before it is 5 years old, you will forfeit the last 3 months' interest. And you can't cash a bond before it is 1 year old.

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

Penalty for cashing early
Loss of previous three months of interest if you cash during the first five years. For example, if you cash the bond after 18 months, you get the first 15 months of interest.

https://www.treasurydirect.gov/indiv/re ... arison.htm
45% US Indexes, 25% Ex-US Indexes, 30% Fixed Income - Buy & Hold
evelynmanley
Posts: 1029
Joined: Tue Sep 21, 2010 9:13 am

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by evelynmanley »

Samosa22 wrote: Thu Aug 11, 2022 4:41 pm When does the earned interest amount show up in TD account? The purchase date of my I bond is 07-01-2022 but I don't see July's interest added to my account.
I am aware that the interest compounds semi-annually, but I thought it accrues monthly so was expecting to see July's interest.

<<Don’t go ballistic over the way TreasuryDirect reports I Bond interest
Posted on August 9, 2022 by Tipswatch

By David Enna, Tipswatch.com>>

https://tipswatch.com/2022/08/09/dont-g ... -interest/
MisterMister
Posts: 528
Joined: Thu Nov 01, 2018 9:50 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by MisterMister »

Mel Lindauer wrote: Thu Aug 11, 2022 4:36 pm
tj wrote: Thu Aug 11, 2022 3:41 pm
Mel Lindauer wrote: Thu Aug 11, 2022 10:22 am Did anyone notice this part of the above TD response?

. . . while continuing ongoing work on a comprehensive modernization.

They are, indeed, working on updating the site.
We can only hope its more effective than what the TSP did.
Hopefully it will be a huge improvement that will keep folks from getting locked out when setting up their account by doing simple things like hitting the backspace. I'm encouraged that they're no longer requiring the very-hard-to-get medallion signature for things where it was required in the past.
Uhhh... I just hope they get rid of that awful virtual keyboard and implement a more conventional UI where password managers can be used. I understand the former is arguably secure, but what a pain. I've been Pavlov-conditioned to live without the ability to page back but allowing that would be nice as well.
MisterMister
Posts: 528
Joined: Thu Nov 01, 2018 9:50 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by MisterMister »

I am planning to using the dual spousal-gifting strategy to boost my purchases this year before the end of October. I want to get in on more of that 9.62% rate before the window closes.

It is tempting to wait until 10/15 when we will know what the full year's interest will be. But I expect massive demand between then and the end of October; I worry about the TD infrastructure.

And I personally can't imagine anything that would happen to the CPI that would be bad enough to deter my decision to increase my position in I-Bonds. Where can you get a guaranteed $960 gain on a 6-month 20K investment? Yes, I know the money is tied up for a year minimum, but still.

Wondering if others are going to wait or go in now.
IowaFarmWife
Posts: 564
Joined: Thu Nov 02, 2017 9:42 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by IowaFarmWife »

MisterMister wrote: Fri Aug 12, 2022 8:16 am I am planning to using the dual spousal-gifting strategy to boost my purchases this year before the end of October. I want to get in on more of that 9.62% rate before the window closes.

It is tempting to wait until 10/15 when we will know what the full year's interest will be. But I expect massive demand between then and the end of October; I worry about the TD infrastructure.

And I personally can't imagine anything that would happen to the CPI that would be bad enough to deter my decision to increase my position in I-Bonds. Where can you get a guaranteed $960 gain on a 6-month 20K investment? Yes, I know the money is tied up for a year minimum, but still.

Wondering if others are going to wait or go in now.
I purchase at the end of every month, so my answer is "now." I've been purchasing I-bonds for almost five years, and I anticipate continuing to do this at least up until retirement (6-9 years out now).
"A nickel ain't worth a dime anymore." Yogi Berra's financial wisdom.
MikeG62
Posts: 5065
Joined: Tue Nov 15, 2016 2:20 pm
Location: New Jersey

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by MikeG62 »

MisterMister wrote: Fri Aug 12, 2022 8:16 am I am planning to using the dual spousal-gifting strategy to boost my purchases this year before the end of October. I want to get in on more of that 9.62% rate before the window closes.

It is tempting to wait until 10/15 when we will know what the full year's interest will be. But I expect massive demand between then and the end of October; I worry about the TD infrastructure.

And I personally can't imagine anything that would happen to the CPI that would be bad enough to deter my decision to increase my position in I-Bonds. Where can you get a guaranteed $960 gain on a 6-month 20K investment? Yes, I know the money is tied up for a year minimum, but still.

Wondering if others are going to wait or go in now.
I am going to wait till I see the Sept CPI-U. Currently, my wife and I maxed our 2022 allotment and have purchased gift bonds for each other for delivery in 2023 and 2024. The Oct purchase (should we make one - which is quite likely) would be gift purchases for 2025 delivery.

Remember, the Nov 1 rate reset will be based upon "two" data points - the CPI-U for Sept 2022 vs. the CPI-U for March 2022. That is it. What happens in the months between is irrelevant unless it is a driver of what the Sept CPI-U is going to be. We just had a CPI-U release for July this week and there was no sequential growth from June. Might we be looking at anther two flat months? Could be. If that happens, the rate reset will be a little over 6.0%. If on the other hand, it declines 50bps per month, the rate would be closer to 4.0%. Could it rise, sure it could. I'm guessing the rate will be between 4.0% and 7.0%, but I have no crystal ball. Even at 4.0% we will most probably make the gift purchases for 2025 delivery.

I am not worried at all about not being able to execute a purchase over the two week period from the release of the CPI-U through 10/31. We bought our gift bonds two different times the last week of April. No issues. I would not plan to execute the purchase on 10/31 or even 10/28. I'll buy either one day during the week beginning 10/17 or late in the week ending 10/14.
Real Knowledge Comes Only From Experience
jpdprescott
Posts: 2
Joined: Tue Jul 26, 2022 8:10 am

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by jpdprescott »

I sent 27 paper I bonds and EE bonds with manifest to TreasuryDirect for conversion to electronic form, and the USPS indicates they were delivered on June 27, 2022. TreasuryDirect has yet to acknowledge receipt of the bonds by email or in my online account. I called several weeks ago and the representative said they were there but they were being prepared for processing. I am hoping that individual spoke the truth, but how can it take seven weeks to prepare bonds for conversion and why hasn't there been any written acknowledgement of receipt? Anyone else have experience with such delays? Suggestions?
MisterMister
Posts: 528
Joined: Thu Nov 01, 2018 9:50 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by MisterMister »

jpdprescott wrote: Fri Aug 12, 2022 1:38 pm I sent 27 paper I bonds and EE bonds with manifest to TreasuryDirect for conversion to electronic form, and the USPS indicates they were delivered on June 27, 2022. TreasuryDirect has yet to acknowledge receipt of the bonds by email or in my online account. I called several weeks ago and the representative said they were there but they were being prepared for processing. I am hoping that individual spoke the truth, but how can it take seven weeks to prepare bonds for conversion and why hasn't there been any written acknowledgement of receipt? Anyone else have experience with such delays? Suggestions?
It does take some time. I did it in April and it took a month (I only had one paper bond).

There's no worry, even if the bonds were lost you can get them replaced (I assume you kept some documentation). I contacted TD by email when I got worried and they didn't even respond. They are very busy as you can imagine. My guess, and only a guess, is they will show up in your account within the next week or two. In the mean time, you're not losing any interest of course.

EDIT: I don't recall them acknowledging my submission at any point along the way; I did get an email when the process was complete.
User avatar
framus
Posts: 171
Joined: Sun Mar 24, 2019 1:57 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by framus »

MisterMister wrote: Fri Aug 12, 2022 8:07 am
Mel Lindauer wrote: Thu Aug 11, 2022 4:36 pm
tj wrote: Thu Aug 11, 2022 3:41 pm
Mel Lindauer wrote: Thu Aug 11, 2022 10:22 am Did anyone notice this part of the above TD response?

. . . while continuing ongoing work on a comprehensive modernization.

They are, indeed, working on updating the site.
We can only hope its more effective than what the TSP did.
Hopefully it will be a huge improvement that will keep folks from getting locked out when setting up their account by doing simple things like hitting the backspace. I'm encouraged that they're no longer requiring the very-hard-to-get medallion signature for things where it was required in the past.
Uhhh... I just hope they get rid of that awful virtual keyboard and implement a more conventional UI where password managers can be used. I understand the former is arguably secure, but what a pain. I've been Pavlov-conditioned to live without the ability to page back but allowing that would be nice as well.
I second the criticism of that virtual keyboard.
I use complex passwords generated by my password manager (1password). That silly virtual keyboard discourages complexity.
Typically I don't save passwords in my web browser (Safari) but have made TD the lone exception. When I want to log on to TD, I turn on "autofill user names and passwords" in Safari preferences and confirm my TD password is in the Safari preferences "Passwords" ...voila, it just works. I turn off the autofill function once I'm done. This is a genuine PITA work-around. :oops:
Kookaburra
Posts: 2045
Joined: Thu Apr 02, 2020 11:14 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Kookaburra »

alluringreality wrote: Thu Aug 11, 2022 4:56 pm
Samosa22 wrote: Thu Aug 11, 2022 4:41 pm When does the earned interest amount show up in TD account?
There is a penalty of the most recent three months interest for redeeming savings bonds before 5 years. Forum discussion indicates that the first increase will appear in the the fourth month following your purchase. Basically your holding period needs to exceed the penalty period. You should have earned interest showing November 1, and the next increase is December 1.

What is the penalty if I cash my bond during the first 5 years?
If you cash a bond before it is 5 years old, you will forfeit the last 3 months' interest. And you can't cash a bond before it is 1 year old.

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

Penalty for cashing early
Loss of previous three months of interest if you cash during the first five years. For example, if you cash the bond after 18 months, you get the first 15 months of interest.

https://www.treasurydirect.gov/indiv/re ... arison.htm
In the example quoted, how does one get the first 15 months of interest if the first 3 months of interest don’t count / don’t show up on the TD site? Do they change the accounting from the first 3 months to the last 3 months?
tj
Posts: 9368
Joined: Wed Dec 23, 2009 11:10 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by tj »

Kookaburra wrote: Fri Aug 12, 2022 5:55 pm
alluringreality wrote: Thu Aug 11, 2022 4:56 pm
Samosa22 wrote: Thu Aug 11, 2022 4:41 pm When does the earned interest amount show up in TD account?
There is a penalty of the most recent three months interest for redeeming savings bonds before 5 years. Forum discussion indicates that the first increase will appear in the the fourth month following your purchase. Basically your holding period needs to exceed the penalty period. You should have earned interest showing November 1, and the next increase is December 1.

What is the penalty if I cash my bond during the first 5 years?
If you cash a bond before it is 5 years old, you will forfeit the last 3 months' interest. And you can't cash a bond before it is 1 year old.

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

Penalty for cashing early
Loss of previous three months of interest if you cash during the first five years. For example, if you cash the bond after 18 months, you get the first 15 months of interest.

https://www.treasurydirect.gov/indiv/re ... arison.htm
In the example quoted, how does one get the first 15 months of interest if the first 3 months of interest don’t count / don’t show up on the TD site? Do they change the accounting from the first 3 months to the last 3 months?
Because its the last 3 months that doesn't count, not the first 3.
Kookaburra
Posts: 2045
Joined: Thu Apr 02, 2020 11:14 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Kookaburra »

Question about what interest counts when selling an I bond before the 5-year mark, coupled with an example:

I purchased 10K of I bonds in April, when it had an annualized rate of 7.12%. My understanding is that I will get this rate (7.12%) for 6 months (so, April thru Sept), and then I’ll start to get the 9.62% rate in Oct lasting through March 2023.

If I were to cash out the I bond on April 1, 2023, how much interest would I get? Would I get 3 months at 7.12% and 6 months at 9.62%? Or 6 months at 7.12% and 3 months at 9.62%?

Folks have noted that the TD website doesn’t show any interest until the fifth month (covering the 4th month), as it is treating the first 3 months as the penalty period. But my understanding is that the penalty period is the last 3 months of interest, not the first 3. If it is indeed the last 3 months, how do they “restore” the first 3 months that were originally zero?
Pegasus_RPG
Posts: 130
Joined: Fri Jul 20, 2018 11:06 am

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Pegasus_RPG »

Kookaburra wrote: Fri Aug 12, 2022 6:03 pm If I were to cash out the I bond on April 1, 2023, how much interest would I get? Would I get 3 months at 7.12% and 6 months at 9.62%? Or 6 months at 7.12% and 3 months at 9.62%?
The latter. It's the most recent 3 months' interest that is forfeited.
If it is indeed the last 3 months, how do they “restore” the first 3 months that were originally zero?
It's just a display thing. The bond itself earns the interest. TD just shows what you would get if you cashed it today, not it's actual present value. Compare to what you can find on EyeBonds.info: click the issue month in the year row to see your bond's actual present (and future known) value. Go back three months and that amount should equal what TD shows for a given bond (in the first 5 years after purchase.)
User avatar
BlueEars
Posts: 3968
Joined: Fri Mar 09, 2007 11:15 pm
Location: West Coast

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by BlueEars »

Today I ran the iBond calculator from Treasury Direct as I have done monthly for years. But now I get a number for my ibonds that is much lower then previous results. The calulator is here: https://treasurydirect.gov/BC/SBCPrice

For instance, for a $10,000 ibond purchased on 04/01 the value shown is $32,628 for 07/22. The number I got when I last ran it in July was $34984 !! :( That is a big difference. Here is the Treasury Direct data:

Image


I looked back at previous results and the same thing is happening, the current calculator shows a value quite a bit lower then my previous numbers. The current calculator did not have a record of my previous inputs for the issue date and it had that for many years. So I think the calculator may have been updated.

Can others check this out and tell me if they see a different result for their ibonds? Thanks.
BrokerageZelda
Posts: 463
Joined: Sat Apr 10, 2021 10:39 am

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by BrokerageZelda »

BlueEars wrote: Fri Aug 12, 2022 7:02 pm Today I ran the iBond calculator from Treasury Direct as I have done monthly for years. But now I get a number for my ibonds that is much lower then previous results. The calulator is here: https://treasurydirect.gov/BC/SBCPrice

For instance, for a $10,000 ibond purchased on 04/01 the value shown is $32,628 for 07/22. The number I got when I last ran it in July was $34984 !! :( That is a big difference. Here is the Treasury Direct data:

Image


I looked back at previous results and the same thing is happening, the current calculator shows a value quite a bit lower then my previous numbers. The current calculator did not have a record of my previous inputs for the issue date and it had that for many years. So I think the calculator may have been updated.

Can others check this out and tell me if they see a different result for their ibonds? Thanks.
From the I Bond tables at https://eyebonds.info/ibonds/index.html I find that $32628 is the correct July 2022 value for a $10k I Bond purchased in April 2001...

and also that $34984 is the correct July 2022 value for a $10k I Bond purchased in April 2000. Perhaps the year was fudged between this run and the last? Both April 2000 and April 2001 had a 3.40% fixed rate, so it might be easy to mix up.
User avatar
BlueEars
Posts: 3968
Joined: Fri Mar 09, 2007 11:15 pm
Location: West Coast

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by BlueEars »

BrokerageZelda wrote: Fri Aug 12, 2022 7:11 pm
BlueEars wrote: Fri Aug 12, 2022 7:02 pm Today I ran the iBond calculator from Treasury Direct as I have done monthly for years. But now I get a number for my ibonds that is much lower then previous results. The calulator is here: https://treasurydirect.gov/BC/SBCPrice

For instance, for a $10,000 ibond purchased on 04/01 the value shown is $32,628 for 07/22. The number I got when I last ran it in July was $34984 !! :( That is a big difference. Here is the Treasury Direct data:

Image


I looked back at previous results and the same thing is happening, the current calculator shows a value quite a bit lower then my previous numbers. The current calculator did not have a record of my previous inputs for the issue date and it had that for many years. So I think the calculator may have been updated.

Can others check this out and tell me if they see a different result for their ibonds? Thanks.
From the I Bond tables at https://eyebonds.info/ibonds/index.html I find that $32628 is the correct July 2022 value for a $10k I Bond purchased in April 2001...

and also that $34984 is the correct July 2022 value for a $10k I Bond purchased in April 2000. Perhaps the year was fudged between this run and the last? Both April 2000 and April 2001 had a 3.40% fixed rate, so it might be easy to mix up.
Great catch, thanks. I think what happened is long ago I mistakenly input 04/00 in the calculator. Maybe it is my Firefox browser or the actual calculator that keeps that input for future selection. So i merrily went along inputting the wrong year. Now I find I was living in happy land and have to use the correct 04/01 date. Oh well, better to live with reality. :happy :oops:
Xrayman69
Posts: 1013
Joined: Fri Jun 01, 2018 8:52 pm

Re: Treasury direct I bonds and interest

Post by Xrayman69 »

I’ve maxed out for the year at 10K.

How do I go about having spouse “gift” me to permit more space this year? Do we have to open an account for my spouse?
MikeG62
Posts: 5065
Joined: Tue Nov 15, 2016 2:20 pm
Location: New Jersey

Re: Treasury direct I bonds and interest

Post by MikeG62 »

Xrayman69 wrote: Sat Aug 13, 2022 8:57 am I’ve maxed out for the year at 10K.

How do I go about having spouse “gift” me to permit more space this year? Do we have to open an account for my spouse?
Read this. It will answer your questions.

https://thefinancebuff.com/buy-i-bonds-as-gift.html
Real Knowledge Comes Only From Experience
User avatar
LadyGeek
Site Admin
Posts: 95696
Joined: Sat Dec 20, 2008 4:34 pm
Location: Philadelphia
Contact:

Re: Treasury direct I bonds and interest

Post by LadyGeek »

I merged Xrayman69's thread into the ongoing discussion.

(Thanks to the member who reported the post and explained what's wrong.)
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
Calhoon
Posts: 242
Joined: Wed Feb 16, 2011 12:29 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Calhoon »

I just learned about this gifting business on another boogle thread the other day. For some reason, had missed it before.

I've been investing 10k in ibonds for me and my wife for the last 4 years, and had planned on making it an annual thing, like maxing out IRA years, for the next 5 years at least. I'm 55 now.

I also happen to be sitting on a couple hundred thousand in a taxable account at ally.

With this in mind, I'm not sure why wouldn't I just throw in 5 years of gifts for both my wife and I right now. My thinking was that I would come out far ahead from keeping it in a bank or even a cd, especially with the initial burst the current ibond rate would offer versus ally. I like the idea that the clock for the 5 year ibond min (for penalty free withdraw) starts with initial purchase, and I'd be set for ibonds for a long time and wouldn't have to set aside money for that when future years roll around.

I was thinking that if worse came to worse and I lost my or something I could use these ibonds as a 20k per year pension fund. My understanding is that as soon as my wife delivers the gift to me in 2026, for example, I could turn around and see them the next day.

I know TIPS up before and i'll have to check into those more. My eyes gloss over when I read about them. I would think that I would have to make more with TIPS than a percent or 2 over ibonds to make the additional risk of TIPS worth it.
MisterMister
Posts: 528
Joined: Thu Nov 01, 2018 9:50 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by MisterMister »

Calhoon wrote: Sun Aug 14, 2022 12:14 pm I just learned about this gifting business on another boogle thread the other day. For some reason, had missed it before.

I've been investing 10k in ibonds for me and my wife for the last 4 years, and had planned on making it an annual thing, like maxing out IRA years, for the next 5 years at least. I'm 55 now.

I also happen to be sitting on a couple hundred thousand in a taxable account at ally.

With this in mind, I'm not sure why wouldn't I just throw in 5 years of gifts for both my wife and I right now. My thinking was that I would come out far ahead from keeping it in a bank or even a cd, especially with the initial burst the current ibond rate would offer versus ally. I like the idea that the clock for the 5 year ibond min (for penalty free withdraw) starts with initial purchase, and I'd be set for ibonds for a long time and wouldn't have to set aside money for that when future years roll around.

I was thinking that if worse came to worse and I lost my or something I could use these ibonds as a 20k per year pension fund. My understanding is that as soon as my wife delivers the gift to me in 2026, for example, I could turn around and see them the next day.

I know TIPS up before and i'll have to check into those more. My eyes gloss over when I read about them. I would think that I would have to make more with TIPS than a percent or 2 over ibonds to make the additional risk of TIPS worth it.
Well there are some other threads on this here. For example: viewtopic.php?t=346664&start=100

In that thread it is pointed out that I-Bonds cannot be "ungifted". By the way, you also cannot gift I-Bonds to yourself. You and your wife would have to gift each other.

Once the I-Bond gift is purchased, the money is locked up until it can be transferred to the recipient (albeit earning interest)....which can take a while since the recipient can only get 10K per year. So you have to be pretty certain you'll not need it in the interim.

I found this youtube video useful, if basic: https://youtu.be/bSoZJJypSAQ
Last edited by MisterMister on Mon Aug 15, 2022 10:38 am, edited 1 time in total.
Creditcardguy
Posts: 161
Joined: Fri May 25, 2018 7:23 am

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Creditcardguy »

The YouTube video was extremely helpful. Bought my gifts this morning no problem. Thanks. :sharebeer
User avatar
wishIknewbackwhen
Posts: 51
Joined: Wed Apr 13, 2022 7:52 am

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by wishIknewbackwhen »

framus wrote: Fri Aug 12, 2022 2:01 pm
MisterMister wrote: Fri Aug 12, 2022 8:07 am
Mel Lindauer wrote: Thu Aug 11, 2022 4:36 pm
tj wrote: Thu Aug 11, 2022 3:41 pm
Mel Lindauer wrote: Thu Aug 11, 2022 10:22 am Did anyone notice this part of the above TD response?

. . . while continuing ongoing work on a comprehensive modernization.

They are, indeed, working on updating the site.
We can only hope its more effective than what the TSP did.
Hopefully it will be a huge improvement that will keep folks from getting locked out when setting up their account by doing simple things like hitting the backspace. I'm encouraged that they're no longer requiring the very-hard-to-get medallion signature for things where it was required in the past.
Uhhh... I just hope they get rid of that awful virtual keyboard and implement a more conventional UI where password managers can be used. I understand the former is arguably secure, but what a pain. I've been Pavlov-conditioned to live without the ability to page back but allowing that would be nice as well.
I second the criticism of that virtual keyboard.
I use complex passwords generated by my password manager (1password). That silly virtual keyboard discourages complexity.
Typically I don't save passwords in my web browser (Safari) but have made TD the lone exception. When I want to log on to TD, I turn on "autofill user names and passwords" in Safari preferences and confirm my TD password is in the Safari preferences "Passwords" ...voila, it just works. I turn off the autofill function once I'm done. This is a genuine PITA work-around. :oops:
You may want to check out viewtopic.php?t=383387
MisterMister
Posts: 528
Joined: Thu Nov 01, 2018 9:50 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by MisterMister »

Creditcardguy wrote: Mon Aug 15, 2022 10:30 am The YouTube video was extremely helpful. Bought my gifts this morning no problem. Thanks. :sharebeer
Yes, I think it was well done and went step-by-step through what you need to do at TD.

I reviewed it again myself today and set up my gift also without any issues. I encourage anyone planning to use this strategy to review the video.
User avatar
samsoes
Posts: 2802
Joined: Tue Mar 05, 2013 8:12 am
Location: Northeast Rat Race

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by samsoes »

Samosa22 wrote: Thu Aug 11, 2022 4:41 pm When does the earned interest amount show up in TD account? The purchase date of my I bond is 07-01-2022 but I don't see July's interest added to my account.
I am aware that the interest compounds semi-annually, but I thought it accrues monthly so was expecting to see July's interest.
You'll see it on Nov 1. There is a three-month lag posting interest during the first five years of a bond's life.
"Happiness Is Not My Companion" - Gen. Gouverneur K. Warren. | (Avatar is the statue of Gen. Warren atop Little Round Top @ Gettysburg National Military Park.)
Kookaburra
Posts: 2045
Joined: Thu Apr 02, 2020 11:14 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Kookaburra »

Pegasus_RPG wrote: Fri Aug 12, 2022 6:53 pm
Kookaburra wrote: Fri Aug 12, 2022 6:03 pm If I were to cash out the I bond on April 1, 2023, how much interest would I get? Would I get 3 months at 7.12% and 6 months at 9.62%? Or 6 months at 7.12% and 3 months at 9.62%?
The latter. It's the most recent 3 months' interest that is forfeited.
If it is indeed the last 3 months, how do they “restore” the first 3 months that were originally zero?
It's just a display thing. The bond itself earns the interest. TD just shows what you would get if you cashed it today, not it's actual present value. Compare to what you can find on EyeBonds.info: click the issue month in the year row to see your bond's actual present (and future known) value. Go back three months and that amount should equal what TD shows for a given bond (in the first 5 years after purchase.)
Thank you!
Pegasus_RPG
Posts: 130
Joined: Fri Jul 20, 2018 11:06 am

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Pegasus_RPG »

framus wrote: Fri Aug 12, 2022 2:01 pm I second the criticism of that virtual keyboard.
I use complex passwords generated by my password manager (1password). That silly virtual keyboard discourages complexity.
You're right. This is also why I rage against the (thankfully somewhat short-lived) security theater fad of disallowing pasting into password fields that some banks and even T-Mobile were doing for awhile.

In any case, I learned a trick (on here I think) where you can remove the readonly="readonly" tag on the password field at TD by using Inspect (Q) in Firefox (right-click on the password field and choose it,) then the field will be auto-filled by your browser. :D
radioactive
Posts: 27
Joined: Fri Feb 22, 2013 10:18 am

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by radioactive »

Pegasus_RPG wrote: Wed Aug 17, 2022 11:34 pm
framus wrote: Fri Aug 12, 2022 2:01 pm I second the criticism of that virtual keyboard.
I use complex passwords generated by my password manager (1password). That silly virtual keyboard discourages complexity.
You're right. This is also why I rage against the (thankfully somewhat short-lived) security theater fad of disallowing pasting into password fields that some banks and even T-Mobile were doing for awhile.

In any case, I learned a trick (on here I think) where you can remove the readonly="readonly" tag on the password field at TD by using Inspect (Q) in Firefox (right-click on the password field and choose it,) then the field will be auto-filled by your browser. :D
Easier solution for me was to create a bookmark with the following URL:

Code: Select all

javascript:Array.from(document.getElementsByTagName("input")).forEach((el)=>el.removeAttribute("readonly"))
When you are on the silly keyboard entry page, just select the bookmark, and then you can either type your password, or use a password manager to enter the text.
Calhoon
Posts: 242
Joined: Wed Feb 16, 2011 12:29 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Calhoon »

I was planning on frontloading several years of ibonds in a gift box.

Is there a risk that the treasury could lower the per year limit from 10k to 5k? This could make frontloading less than 2 years less appealing as it would take twice the time to deliver.

I saw that in 2007 they lowered the limit from 30k to 10k (5k digital and 5k paper). In a press release they said that this was because they wanted to target retail investors.

Lowering the limit to 5k didn't seem very realistic to me but was curious if anyone had any thoughts one way or the other.
User avatar
Richard1580
Posts: 336
Joined: Fri Aug 25, 2017 7:53 pm
Location: Flyover country

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Richard1580 »

Calhoon wrote: Thu Aug 18, 2022 7:38 am I was planning on frontloading several years of ibonds in a gift box.

Is there a risk that the treasury could lower the per year limit from 10k to 5k? This could make frontloading less than 2 years less appealing as it would take twice the time to deliver.

I saw that in 2007 they lowered the limit from 30k to 10k (5k digital and 5k paper). In a press release they said that this was because they wanted to target retail investors.

Lowering the limit to 5k didn't seem very realistic to me but was curious if anyone had any thoughts one way or the other.
"Place your bets and take your chances." :-)

This year I frontloaded three years of gift iBonds for my wife and myself. I am not worried about it.
"The quest is the quest."
User avatar
HueyLD
Posts: 9789
Joined: Mon Jan 14, 2008 9:30 am

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by HueyLD »

Calhoon wrote: Thu Aug 18, 2022 7:38 am I was planning on frontloading several years of ibonds in a gift box.

Is there a risk that the treasury could lower the per year limit from 10k to 5k? This could make frontloading less than 2 years less appealing as it would take twice the time to deliver.

I saw that in 2007 they lowered the limit from 30k to 10k (5k digital and 5k paper). In a press release they said that this was because they wanted to target retail investors.

Lowering the limit to 5k didn't seem very realistic to me but was curious if anyone had any thoughts one way or the other.
There is a possibility for lower or even higher acquisition limit. Nobody knows in advance unless you are the Treasury Secretary.

Just do what your gut tells you and forget about speculating on things beyond your control.
SnowBog
Posts: 4699
Joined: Fri Dec 21, 2018 10:21 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by SnowBog »

HueyLD wrote: Thu Aug 18, 2022 8:15 am
Calhoon wrote: Thu Aug 18, 2022 7:38 am I was planning on frontloading several years of ibonds in a gift box.

Is there a risk that the treasury could lower the per year limit from 10k to 5k? This could make frontloading less than 2 years less appealing as it would take twice the time to deliver.

I saw that in 2007 they lowered the limit from 30k to 10k (5k digital and 5k paper). In a press release they said that this was because they wanted to target retail investors.

Lowering the limit to 5k didn't seem very realistic to me but was curious if anyone had any thoughts one way or the other.
There is a possibility for lower or even higher acquisition limit. Nobody knows in advance unless you are the Treasury Secretary.

Just do what your gut tells you and forget about speculating on things beyond your control.
+1

In a similar vein, maybe inflation gets under control in the future, rates go negative, and TD increases the "fixed" rate to keep people interested in I Bonds...

Do what your are comfortable doing, knowing you can't control or predict the future.
fujiters
Posts: 548
Joined: Tue Mar 06, 2018 1:17 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by fujiters »

Calhoon wrote: Thu Aug 18, 2022 7:38 am I was planning on frontloading several years of ibonds in a gift box.

Is there a risk that the treasury could lower the per year limit from 10k to 5k? This could make frontloading less than 2 years less appealing as it would take twice the time to deliver.

I saw that in 2007 they lowered the limit from 30k to 10k (5k digital and 5k paper). In a press release they said that this was because they wanted to target retail investors.

Lowering the limit to 5k didn't seem very realistic to me but was curious if anyone had any thoughts one way or the other.
All my the gifts to be delivered after 2023 are in $5k increments to try to avoid potential issues if the Treasury decides to decrease the limit.
Last edited by fujiters on Thu Aug 18, 2022 7:05 pm, edited 2 times in total.
“The purpose of the margin of safety is to render the forecast unnecessary.” -Benjamin Graham
rickwmm
Posts: 43
Joined: Sun Feb 10, 2013 2:29 pm

US Treasury I-Bonds [early withdrawal penalty]

Post by rickwmm »

[Thread merged into here --admin LadyGeek]

Does anyone know how the early withdrawal interest penalty works on US Treasury I-Bonds? These are the bonds pegged to inflation. I am considering buying $10,000 of I-Bonds (the maximum), since the current rate is a hefty 9.6%. The bond has to be held a minimum of one-year and the rate is only guaranteed for six months. But even if the rate drops to 0% for the second six months (which, while unlikely, could theoretically happen if inflation drops to zero), that still averages to 4.8% for 12 months which isn't bad.

But here is the problem. If you cash the bond in before five years, you incur a three-month loss of interest penalty. The question is....how do they calculate the three months of lost interest? Is it the last three months of interest, which would be at 0%? That would keep the blended rate at 4.8% for the year. But if they base it on the initial rate of 9.6%, then that means you only get that rate for three months, so your effective annual rate is 2.4%. That's a pretty big difference.

The help on the Treasury Direct site seems to imply it's the rate at the time you cash the bond in, but I have heard other sources that it may be based on the initial rate when you buy the bond. Unfortunately, the Treasury department is not accepting email inquiries right now and the wait if you make a phone call is a minimum of two hours.

Anyone know definitively how the penalty works?
ehh
Posts: 724
Joined: Mon Feb 01, 2021 10:04 am

Re: US Treasury I-Bonds [early withdrawal penalty]

Post by ehh »

From the bogleheads.org I-bond wiki page:

However, until the bond is owned for 5 years, the value of the bond is reduced by the latest 3 months worth of interest which is a penalty for selling early.

https://www.bogleheads.org/wiki/I_savings_bonds
User avatar
nisiprius
Advisory Board
Posts: 52215
Joined: Thu Jul 26, 2007 9:33 am
Location: The terrestrial, globular, planetary hunk of matter, flattened at the poles, is my abode.--O. Henry

Re: US Treasury I-Bonds [early withdrawal penalty]

Post by nisiprius »

[Added] Sorry, I'm wrong. eyebonds.info tabulates accrued interest and does not account for the penalty.


I believe the information at http://www.eyebonds.info is accurate. It's compiled by forum member #Cruncher. It simply shows in tabular form the monthly redemption value for any series I savings bond, issued in any month, in any denomination, for as long as the value can be determined (i.e. up until the next CPI adjustment). It includes the effect of the penalty. I'm too lazy to stare at it and figure out the answer to your question.

For example, the redemption values for the $1,000 I bond issued January 1, 2018:

Image

You could try pm-ing #Cruncher and see if they want to comment in this thread.
Last edited by nisiprius on Fri Aug 19, 2022 7:17 am, edited 1 time in total.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
MrJedi
Posts: 3540
Joined: Wed May 06, 2020 11:42 am

Re: US Treasury I-Bonds [early withdrawal penalty]

Post by MrJedi »

Last 3 months. Note that the value that you see on Treasury Direct already reflects the last 3 month being taken out. Once you get to 5 years you will notice an extra uptick in value since it will look like you got extra interest but it's actually the last 3 months of interest adding back into the value.
rickwmm
Posts: 43
Joined: Sun Feb 10, 2013 2:29 pm

Re: US Treasury I-Bonds [early withdrawal penalty]

Post by rickwmm »

MrJedi wrote: Thu Aug 18, 2022 6:08 pm Last 3 months. Note that the value that you see on Treasury Direct already reflects the last 3 month being taken out. Once you get to 5 years you will notice an extra uptick in value since it will look like you got extra interest but it's actually the last 3 months of interest adding back into the value.
But how can they deduct the last three months at the time of purchase since they don't know what the final rate will be? That's why I am trying to pin this down, Again, I'm using an example of buying a bond at 9.6% for the first six months and then the rate drops to 0% for the second six months and you cash the bond after one year. If they immediately reduce the value by 3-months using the initial 6-month rate at time of purchase (9.6%), that would effectively give an average rate for the year of 2.4%. But if they do it based on the final three months (i.e months 10 through 12), which in this example is 0%, then the penalty should also be zero and the average rate would be 4.8%.
MrJedi
Posts: 3540
Joined: Wed May 06, 2020 11:42 am

Re: US Treasury I-Bonds [early withdrawal penalty]

Post by MrJedi »

rickwmm wrote: Thu Aug 18, 2022 6:20 pm
MrJedi wrote: Thu Aug 18, 2022 6:08 pm Last 3 months. Note that the value that you see on Treasury Direct already reflects the last 3 month being taken out. Once you get to 5 years you will notice an extra uptick in value since it will look like you got extra interest but it's actually the last 3 months of interest adding back into the value.
But how can they deduct the last three months at the time of purchase since they don't know what the final rate will be? That's why I am trying to pin this down, Again, I'm using an example of buying a bond at 9.6% for the first six months and then the rate drops to 0% for the second six months and you cash the bond after one year. If they immediately reduce the value by 3-months using the initial 6-month rate at time of purchase (9.6%), that would effectively give an average rate for the year of 2.4%. But if they do it based on the final three months (i.e months 10 through 12), which in this example is 0%, then the penalty should also be zero and the average rate would be 4.8%.
I'm not sure what you mean by not knowing what the rate will be. The last 3 months are in the past, so the rate during those 3 months is known.

If you cash out at 12 months and your months 10-12 have 0% rate, then your penalty will be the 3 months of 0% interest (effectively none)
User avatar
LadyGeek
Site Admin
Posts: 95696
Joined: Sat Dec 20, 2008 4:34 pm
Location: Philadelphia
Contact:

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by LadyGeek »

I merged rickwmm's thread into the ongoing discussion.

(Thanks to the member who reported the post and explained what's wrong.)
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
rickwmm
Posts: 43
Joined: Sun Feb 10, 2013 2:29 pm

Re: US Treasury I-Bonds [early withdrawal penalty]

Post by rickwmm »

MrJedi wrote: Thu Aug 18, 2022 6:23 pm
rickwmm wrote: Thu Aug 18, 2022 6:20 pm
MrJedi wrote: Thu Aug 18, 2022 6:08 pm Last 3 months. Note that the value that you see on Treasury Direct already reflects the last 3 month being taken out. Once you get to 5 years you will notice an extra uptick in value since it will look like you got extra interest but it's actually the last 3 months of interest adding back into the value.
But how can they deduct the last three months at the time of purchase since they don't know what the final rate will be? That's why I am trying to pin this down, Again, I'm using an example of buying a bond at 9.6% for the first six months and then the rate drops to 0% for the second six months and you cash the bond after one year. If they immediately reduce the value by 3-months using the initial 6-month rate at time of purchase (9.6%), that would effectively give an average rate for the year of 2.4%. But if they do it based on the final three months (i.e months 10 through 12), which in this example is 0%, then the penalty should also be zero and the average rate would be 4.8%.
I'm not sure what you mean by not knowing what the rate will be. The last 3 months are in the past, so the rate during those 3 months is known.

If you cash out at 12 months and your months 10-12 have 0% rate, then your penalty will be the 3 months of 0% interest (effectively none)
Sorry, I must have misunderstood when you said. I thought you were saying that when you open the bond, the Treasury immediately shows it with the three months interest penalty already deducted from the balance. My point was that at the the time you open the bond, there is no way of knowing what the penalty will be because the government would have no way of knowing what the rate will be when/if you end up cashing it early. But maybe what you're saying is that once you have the bond for the required minimum of one year, they reflect the penalty based on what the interest rate would be if you cashed in at that time. Then, if you continue to hold the bond beyond that first year, do they update the lost interest shown based on whatever the current interest rate is at any time in years 2 through 5?

Regardless - it seems your answer is pretty definitive that in my example, the penalty is based on the final interest rate (months 10-12) which in this case is zero.
kacang
Posts: 263
Joined: Fri Apr 20, 2018 7:43 am
Location: CA

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by kacang »

delrinson wrote: Thu Aug 11, 2022 7:26 am I'm curious: how far out for gift delivery has anyone made purchases? Wife and I made gifts to each other for 2026. No regrets really as our I bonds are just part of our fixed income/cash buffer allocation. I don't expect blended rates of 2025 or 2026 to be much more than 4%...perhaps a bit better.
Frontloaded 3 years so far (to 2025) and will buy more. But we're not trying to time interest rate changes when buying these ibonds gifts. I'm retired and DH will be retiring soon, Ibonds/TIPs is just part of our liability matching ladder to Social Security. We were slow to set up the ladder and doing catch up right now.
User avatar
Doom&Gloom
Posts: 5417
Joined: Thu May 08, 2014 3:36 pm

Re: US Treasury I-Bonds [early withdrawal penalty]

Post by Doom&Gloom »

rickwmm wrote: Thu Aug 18, 2022 7:33 pm
MrJedi wrote: Thu Aug 18, 2022 6:23 pm
rickwmm wrote: Thu Aug 18, 2022 6:20 pm
MrJedi wrote: Thu Aug 18, 2022 6:08 pm Last 3 months. Note that the value that you see on Treasury Direct already reflects the last 3 month being taken out. Once you get to 5 years you will notice an extra uptick in value since it will look like you got extra interest but it's actually the last 3 months of interest adding back into the value.
But how can they deduct the last three months at the time of purchase since they don't know what the final rate will be? That's why I am trying to pin this down, Again, I'm using an example of buying a bond at 9.6% for the first six months and then the rate drops to 0% for the second six months and you cash the bond after one year. If they immediately reduce the value by 3-months using the initial 6-month rate at time of purchase (9.6%), that would effectively give an average rate for the year of 2.4%. But if they do it based on the final three months (i.e months 10 through 12), which in this example is 0%, then the penalty should also be zero and the average rate would be 4.8%.
I'm not sure what you mean by not knowing what the rate will be. The last 3 months are in the past, so the rate during those 3 months is known.

If you cash out at 12 months and your months 10-12 have 0% rate, then your penalty will be the 3 months of 0% interest (effectively none)
Sorry, I must have misunderstood when you said. I thought you were saying that when you open the bond, the Treasury immediately shows it with the three months interest penalty already deducted from the balance. My point was that at the the time you open the bond, there is no way of knowing what the penalty will be because the government would have no way of knowing what the rate will be when/if you end up cashing it early. But maybe what you're saying is that once you have the bond for the required minimum of one year, they reflect the penalty based on what the interest rate would be if you cashed in at that time. Then, if you continue to hold the bond beyond that first year, do they update the lost interest shown based on whatever the current interest rate is at any time in years 2 through 5?

Regardless - it seems your answer is pretty definitive that in my example, the penalty is based on the final interest rate (months 10-12) which in this case is zero.
Would it be easier to visualize if it were stated as "the most recent three months" rather than "the last three months?"
rickwmm
Posts: 43
Joined: Sun Feb 10, 2013 2:29 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by rickwmm »

No, I wasn't confused about the meaning of "last 3 months". I thought you were saying that when you open the account, the government already shows the three-month interest penalty deducted from your balance at time zero. But they wouldn't know at this point what the interest will be at the 12-month mark which the earliest time you can cash the bond in.
MrJedi
Posts: 3540
Joined: Wed May 06, 2020 11:42 am

Re: US Treasury I-Bonds [early withdrawal penalty]

Post by MrJedi »

rickwmm wrote: Thu Aug 18, 2022 7:33 pm
MrJedi wrote: Thu Aug 18, 2022 6:23 pm
rickwmm wrote: Thu Aug 18, 2022 6:20 pm
MrJedi wrote: Thu Aug 18, 2022 6:08 pm Last 3 months. Note that the value that you see on Treasury Direct already reflects the last 3 month being taken out. Once you get to 5 years you will notice an extra uptick in value since it will look like you got extra interest but it's actually the last 3 months of interest adding back into the value.
But how can they deduct the last three months at the time of purchase since they don't know what the final rate will be? That's why I am trying to pin this down, Again, I'm using an example of buying a bond at 9.6% for the first six months and then the rate drops to 0% for the second six months and you cash the bond after one year. If they immediately reduce the value by 3-months using the initial 6-month rate at time of purchase (9.6%), that would effectively give an average rate for the year of 2.4%. But if they do it based on the final three months (i.e months 10 through 12), which in this example is 0%, then the penalty should also be zero and the average rate would be 4.8%.
I'm not sure what you mean by not knowing what the rate will be. The last 3 months are in the past, so the rate during those 3 months is known.

If you cash out at 12 months and your months 10-12 have 0% rate, then your penalty will be the 3 months of 0% interest (effectively none)
Sorry, I must have misunderstood when you said. I thought you were saying that when you open the bond, the Treasury immediately shows it with the three months interest penalty already deducted from the balance. My point was that at the the time you open the bond, there is no way of knowing what the penalty will be because the government would have no way of knowing what the rate will be when/if you end up cashing it early. But maybe what you're saying is that once you have the bond for the required minimum of one year, they reflect the penalty based on what the interest rate would be if you cashed in at that time. Then, if you continue to hold the bond beyond that first year, do they update the lost interest shown based on whatever the current interest rate is at any time in years 2 through 5?

Regardless - it seems your answer is pretty definitive that in my example, the penalty is based on the final interest rate (months 10-12) which in this case is zero.
Yes, the lost interest is updated every month.

Examples. After:

1 month: 0 interest reflected in value due to 3 month penalty
2 months: 0 interest reflected in value due to 3 month penalty
3 months: 0 interest reflected in value due to 3 month penalty
4 months: 1 month interest in value. Interest is from month 1, while interest from months 2,3,4 are not shown due to penalty
5 months: 2 months interest in value. Interest is from months 1 and 2, while interest from months 3,4,5 are not shown due to penalty
etc.

Very commonly people look at their accounts in the first 3 months and wonder why there is no interest. Also people will look at their <5 year old bond and notice that it looks like less interest but do not realize the value shown has subtracted out the 3 most recent months of interest.
rickwmm
Posts: 43
Joined: Sun Feb 10, 2013 2:29 pm

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by rickwmm »

Thanks for the explanation. It makes sense now. I also found a You Tube video that explains all this in pretty amazing detail. After reading your explanation and watching this video, I have no further questions about this.

https://www.youtube.com/watch?v=9hfHoSijJEk

Thanks for your help!
evelynmanley
Posts: 1029
Joined: Tue Sep 21, 2010 9:13 am

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by evelynmanley »

This might address your question:


>>Don’t go ballistic over the way TreasuryDirect reports I Bond interest
Posted on August 9, 2022 by Tipswatch
by David Enna>>

https://tipswatch.com/2022/08/09/dont-g ... -interest/
Post Reply