If you purchase before the end of October, you still get the
9.62% interest rate for the next 6 months. Based on recent data, it
appears I Bonds purchased in November will be somewhere around 6.5%
and anything that is renewing for the period of months following
until the next rate announcement May 1, 2023.
So if wanting to puchase to get the 9.62% for six months, I'd do
it sooner than later. Like everything else in the world, there are
supply chain, staffing, and other concerns. Better to be some days
early than trying to buy at month end and not getting them issued
in time.
Even if you decided you didn't like the interest rate after 12
months , you could always cash in and still have a 6.51% rate for
12 month. That is net after the 3 month interest penalty. Anyone
not holding IBonds for 5 years, gives up the last 3 months
interest. I don't know about you, but I can't find a 6.51%, 12
month cd anywhere.
If wanting something shorter term and/or concerned limits on
your deposit, then go with T Bills:
The last 4 week were 3.3%, 13 week were 3.9%, and 26 week were
4.4% respectively. Once again, no bank can touch these rates. Our
cash is out of the bank except what we need in checking accounts to
run our regular business and left a little extra in case we needed
to get to cash. But mostly I don't hold any huge cash at my bank
anymore as my next 4 week maturity is just around the corner. The
Treasury direct site is easy to use and you can even have them
automatically reinvest for up to 2 years. If not, the interest and
principal just goes back into your bank account after maturity.
Probably more information than you wanted haha
Sure thing, and you thought I just tracked SPX cash gaps
Speaking of SPX cash gaps, that 3,583.07 gap is still open
below, possibly supportive of your flat scenario playing out and/or
retest of 3,500 at some point, etc.
You can also buy T Bills through your broker, I've never done it
as I like everything in one place with my bonds directly on the
Treasury Direct site. Link a bank account, fund, and
done.
If wanting them for your IRA, contact your broker and see if
they do it. And yes, on personal funds, would be taxable in the
year paid, federal, not state, or local taxable. It should be a
1099-INT
Posted by DigiNomad on 20th of Oct 2022 at 10:48 am
I Bonds are not taxed until they are cashed out (I realize this
is not the technical term). They pay out for 30+ years (I
think it's 30 but maybe 35), but it all rolls into principle and
there are no taxable events until sale.
It's a very interesting alternative to 529's...at the current
rate. You can gift minors 10K each each year (from all donors to
that minor). If they use proceeds to pay for qualified higher
education, there are no taxes (at the Federal level most likely.
Probably a state by state determination on tax treatment of I
bonds).
Ya, we are mixing topics here. Someone asked about T Bills and
they are taxed as I mentioned federally, not state, or local. I
Bonds are totally different and as Digi said, not taxed until
redeemed.
I opened a Treasury Direct account, had a problem logging in and
no one EVER answers the phone to fix it or answers an email...for
weeks. Now unable to view my account. Should have known when a
gov't agency runs things. Never again. Plenty of brokers offer
Treasuries and bonds. Even if I don't get the I-Bonds. Not worth
the headache.
Posted by DigiNomad on 20th of Oct 2022 at 10:40 am
Treasury Direct - I have been working with clients on this
issue. Do yourself a favor and don't complete any of the non
mandatory information when you're initially setting it up. They'll
let you put in your DL # and state, expiration date, etc, but it's
not required and I've seen it cause the system to put them on hold
while you send them a notarized paper application....which they say
takes 12 -14 weeks to process (no joke).
Interestingly, if you are in that locked out / hold state,
you can go in and start a new application with the same / identical
SS #...leave out anything but the mandatory parts on the new
application...and it should go through (because of course Gov
didn't hire developers who programmed it to check for an existing
application). I've had 100% success with this method so
far.
The phone lines are open this Saturday (it is rare they are open
for calls) if you need to call them
844-284-2676from 7am-12pm (noon)
central time. If calling, do it earlier the better when they first
open should be less chances of a longer hold time.
I've had no issues with the system, sorry to hear you
did.
I have called them and my friends have the same problem. No
thanks. I'll stick with my brokers. They pick up the phone and
offer advice. Also the website sucks.
It's not just the government. Majority of businesses are
just as bad these days. No quality control or accountability.
Paid a premium one Saturday to FedEx to deliver a package with
time sensitive docs 1st thing Monday morning (east coast to west
coast). Package delivered the following Thursday. Money
refunded but delay created problems. Purchased a lawn mower
online. Unpacked and broken on delivery. Returned and
replacement shipped next week; that mower was broken as well.
Returned for full refund. Purchased different brand
from Home Depot; that had to be shipped back as well.
Replacement finally worked.
Question for your fundamentalvalues -
Posted by steve on 20th of Oct 2022 at 09:13 am
Question for your fundamentalvalues - what are the current I-bond rates?
9.62% but they readjust on
Posted by bulf6285 on 20th of Oct 2022 at 09:14 am
9.62% but they readjust on the 28th
bulf6285 - much appreciated
Posted by steve on 20th of Oct 2022 at 09:17 am
bulf6285 - much appreciated
If you purchase before the
Posted by fundamentalvalues on 20th of Oct 2022 at 09:51 am
If you purchase before the end of October, you still get the 9.62% interest rate for the next 6 months. Based on recent data, it appears I Bonds purchased in November will be somewhere around 6.5% and anything that is renewing for the period of months following until the next rate announcement May 1, 2023.
So if wanting to puchase to get the 9.62% for six months, I'd do it sooner than later. Like everything else in the world, there are supply chain, staffing, and other concerns. Better to be some days early than trying to buy at month end and not getting them issued in time.
Even if you decided you didn't like the interest rate after 12 months , you could always cash in and still have a 6.51% rate for 12 month. That is net after the 3 month interest penalty. Anyone not holding IBonds for 5 years, gives up the last 3 months interest. I don't know about you, but I can't find a 6.51%, 12 month cd anywhere.
If wanting something shorter term and/or concerned limits on your deposit, then go with T Bills:
The last 4 week were 3.3%, 13 week were 3.9%, and 26 week were 4.4% respectively. Once again, no bank can touch these rates. Our cash is out of the bank except what we need in checking accounts to run our regular business and left a little extra in case we needed to get to cash. But mostly I don't hold any huge cash at my bank anymore as my next 4 week maturity is just around the corner. The Treasury direct site is easy to use and you can even have them automatically reinvest for up to 2 years. If not, the interest and principal just goes back into your bank account after maturity. Probably more information than you wanted haha
Thanks again for sharing
Posted by steve on 20th of Oct 2022 at 10:02 am
Thanks again for sharing
Sure thing, and you thought
Posted by fundamentalvalues on 20th of Oct 2022 at 10:04 am
Sure thing, and you thought I just tracked SPX cash gaps
Speaking of SPX cash gaps, that 3,583.07 gap is still open below, possibly supportive of your flat scenario playing out and/or retest of 3,500 at some point, etc.
Thanks fundamentalvalues. Is there a
Posted by arun on 20th of Oct 2022 at 09:59 am
Thanks fundamentalvalues. Is there a website for this or I approach my bank ?
Everything is done online these
Posted by fundamentalvalues on 20th of Oct 2022 at 10:01 am
Everything is done online these days: https://www.treasurydirect.gov/
You can also buy T Bills through your broker, I've never done it as I like everything in one place with my bonds directly on the Treasury Direct site. Link a bank account, fund, and done.
treasurydirect.gov
Home — TreasuryDirect
Can we buy T Bills
Posted by mdgfain on 20th of Oct 2022 at 10:36 am
Can we buy T Bills in our IRA? And on personal funds, are they taxable, I presume?
If wanting them for your
Posted by fundamentalvalues on 20th of Oct 2022 at 10:45 am
If wanting them for your IRA, contact your broker and see if they do it. And yes, on personal funds, would be taxable in the year paid, federal, not state, or local taxable. It should be a 1099-INT
I Bonds are not taxed
Posted by DigiNomad on 20th of Oct 2022 at 10:48 am
I Bonds are not taxed until they are cashed out (I realize this is not the technical term). They pay out for 30+ years (I think it's 30 but maybe 35), but it all rolls into principle and there are no taxable events until sale.
It's a very interesting alternative to 529's...at the current rate. You can gift minors 10K each each year (from all donors to that minor). If they use proceeds to pay for qualified higher education, there are no taxes (at the Federal level most likely. Probably a state by state determination on tax treatment of I bonds).
Ya, we are mixing topics
Posted by fundamentalvalues on 20th of Oct 2022 at 11:02 am
Ya, we are mixing topics here. Someone asked about T Bills and they are taxed as I mentioned federally, not state, or local. I Bonds are totally different and as Digi said, not taxed until redeemed.
Ooops. Sounds like maybe I
Posted by DigiNomad on 20th of Oct 2022 at 11:18 am
Ooops. Sounds like maybe I didn't read for detail this time. Sorry about that.
Thanks, fundalmentalvalues!
Posted by mdgfain on 20th of Oct 2022 at 11:09 am
Thanks, fundalmentalvalues!
I opened a Treasury Direct
Posted by brophy on 20th of Oct 2022 at 10:16 am
I opened a Treasury Direct account, had a problem logging in and no one EVER answers the phone to fix it or answers an email...for weeks. Now unable to view my account. Should have known when a gov't agency runs things. Never again. Plenty of brokers offer Treasuries and bonds. Even if I don't get the I-Bonds. Not worth the headache.
Treasury Direct - I have
Posted by DigiNomad on 20th of Oct 2022 at 10:40 am
Treasury Direct - I have been working with clients on this issue. Do yourself a favor and don't complete any of the non mandatory information when you're initially setting it up. They'll let you put in your DL # and state, expiration date, etc, but it's not required and I've seen it cause the system to put them on hold while you send them a notarized paper application....which they say takes 12 -14 weeks to process (no joke).
Interestingly, if you are in that locked out / hold state, you can go in and start a new application with the same / identical SS #...leave out anything but the mandatory parts on the new application...and it should go through (because of course Gov didn't hire developers who programmed it to check for an existing application). I've had 100% success with this method so far.
The phone lines are open
Posted by fundamentalvalues on 20th of Oct 2022 at 10:37 am
The phone lines are open this Saturday (it is rare they are open for calls) if you need to call them 844-284-2676from 7am-12pm (noon) central time. If calling, do it earlier the better when they first open should be less chances of a longer hold time.
I've had no issues with the system, sorry to hear you did.
I have called them and
Posted by brophy on 20th of Oct 2022 at 11:21 am
I have called them and my friends have the same problem. No thanks. I'll stick with my brokers. They pick up the phone and offer advice. Also the website sucks.
It's not just the government.
Posted by RichieD on 20th of Oct 2022 at 10:31 am
It's not just the government. Majority of businesses are just as bad these days. No quality control or accountability.
Paid a premium one Saturday to FedEx to deliver a package with time sensitive docs 1st thing Monday morning (east coast to west coast). Package delivered the following Thursday. Money refunded but delay created problems. Purchased a lawn mower online. Unpacked and broken on delivery. Returned and replacement shipped next week; that mower was broken as well. Returned for full refund. Purchased different brand from Home Depot; that had to be shipped back as well. Replacement finally worked.
At least private companies at
Posted by brophy on 20th of Oct 2022 at 11:24 am
At least private companies at least have a profit motive to give you give service. Your gov't personnel and agencies do not. Both State and US Gov't.
A have a friend running
Posted by retirefire on 20th of Oct 2022 at 11:05 am
A have a friend running a body shop. He has to actually put on application no heroin addicts.
Yes thanks I have some
Posted by srusso1 on 20th of Oct 2022 at 10:05 am
Yes thanks I have some money in Ibonds Treasury Direct site is the place.
thank you so much for
Posted by matt on 20th of Oct 2022 at 09:51 am
thank you so much for posting that detailed info!
I might send your message out to the subscribers as well
Sure, glad to help!
Posted by fundamentalvalues on 20th of Oct 2022 at 09:57 am
Sure, glad to help!