Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that: 1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances & 2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY. > > WATCH NEXT < <
⭐ Why We're Buying More 5.4% I-Bonds In 2023: ruclips.net/video/hwBPBWRht3I/видео.html ⭐ I-Bond Gifting 101: ruclips.net/video/bSoZJJypSAQ/видео.html ⭐ Buy I-Bonds Or TIPS In 2023: ruclips.net/video/JKbvtdcsPSM/видео.html ⭐ Best Money Market Funds vs Cash 2023: ruclips.net/video/N53wZ_80abU/видео.html
@@eddenoy321 As I understand, it's an offset for the fact that you earn interest for the entire month of purchase even if you buy at the end of the month. It all works out if you time it right.
I purchased an I Bond on 8/30/2022 and would like to redeem it at the 15 month point. If I redeem the I Bond on 10/1/2023, would that be considered 15 months? Thanks.
Providing the step-by-step instructions to achieve a particular objective is invaluable to those of us who have not done so before or have not done so in a long time. It precludes we novices from bumbling through the process to do so. Thanks.
Your meticulous and crystal clear explanations are so valuable to me and my family. Since 7.12%, I have gradually moved our family's entire emergency fund as well as other mid-term savings (time horizon: 2-3 years) into i-bonds, and this video helps me plan the next steps as I partially liquidate. I hope this tip balances out the returns you negated by redeeming your $25 of bonds for educational purposes. :) Thanks again!
I redeemed my 1-year old I-Bond yesterday. Even with the penalty it was a great trade for a risk-free instrument. Thanks for the guidance. I met my goals and appreciate your clear information on the topic! By the way, Treasury Direct was quick with the redemption. I applied Sunday night and it hit my bank account Tuesday morning.
@@_-Karl-_ I ended up getting 6.04% interest for one year holding from last April, combining the two rates in effect for each half year and subtracting the three month penalty.
@@_-Karl-_ Hello. I thought the TD platform would show you the penalty before you hit the redeem button. Am I wrong ? Or I have to subtract the penalty manually? I will redeem some ibonds after the 21st month mark in July but I don't want to pay any more EWP than I have to. Maybe I missed that in the video. Thank you.
FYI I don’t know if this is fully risk free anymore if they don’t raise the debt ceiling. Nobody can say for certain if they will and what happens if they don’t to your principal or interest. Any other time in history I’d agree these are risk free. The tutorial and explanation otherwise is perfection. Well done. I own the max I bonds allowed the last two years for me and my wife so hoping the ceiling gets raised.
Can you do a video on when it makes sense to redeem old bonds (after 12 months but under 5 years), lose the 3 months interest and buy new bonds to capture the new fixed rate of .9%?
had to come back to this video today to confirm my understanding and it was perfect. Just redeemed my May 2022 I-bond. and just decided to wait until month 21 to redeem my April 2022 paper bonds. yes, paper! LOL
Many of us bought in April of 2022 and I calculated the ideal time to sell that specific bond would be at the beginning of January of 2024 where you forfeit the 3 months of 3.38% interest.
@@vivisimonvi " I Bonds issued from November 2022 through April carry a 0.4% fixed rate, a rate that applies for the 30-year life of the bond. "--(google). This could change in May.
@@vivisimonvi Ok you are correct. I thank you for pointing it out to me "The fixed rate stays the same for the life of the bond." - (google). Well that does change things. Is this shown in the ibond history on the TD website as well ?
such valuable, important information learned here. I came in at 9.62% and thanks to your recommendation, will hold for 15 months and return here for the step by step directions to redeem them. thank you very much.
In the box for Redemption Instructions “Select payment destination to credit” what entry is being requested? The bank name? The bank routing number? The account number ? Thank you so much for clarifying the ambiguous information the website offers.
All good advice, if we hadn't bought gifts at 9.62% in 2022 to exchange in 2023. That is why my strategy is to just redeem and don't buy in 2023. Now if fixed rate were to jump above 1% in May, maybe we would buy more gifts to exchange in 2024!
Can you redeem iBonds to buy new iBonds in the same transaction? Or must you redeem first, get the cash back, then transact to buy new iBonds? I cannot find anything about this process. Thank you for your videos!
I purchased a 10K I-Bond in December 2021 and April 2022 (both beginning at 7.12%) but their interest does not quite match the table presented at 1:34. For example instead of $360 in the first six month period my interest was $356.
Do you believe that the fixed rate on i bonds will increase when they begin cutting interest rates or decrease? So right now it is 1.3% should i put all my money to lock in this rate that is here or will this high rate stick around a while?
Thank you SO MUCH for the step-by-step! Now I feel very confident. Your $25 redemption is greatly appreciated! In particular, the advice on redemption at month 15 and that it doesn’t make a difference doing so in beginning or end of calendar month was spot-on precisely what I need. Crystal clear video. Love it.
Hi Jennifer! Thanks so much for another great video! I'm not getting out of my I bonds quite yet but some of my T-bills are maturing. I would love more information on the federal withholding option in Treasury Direct. I saw you had yours at zero. I would love to understand your thinking and strategy. How do I figure out a ballpark number how much to withhold in TD or how much to set aside elsewhere for tax year 2023? If I decide to withhold in TD, how and where do you click through to set it up? Thanks! 😊
The bank I use has gotten really bad about questioning me and my family about any larger transactions we conduct using our accounts. I got to the point where I call the bank manager first and tell him a larger transaction will go through in the coming days and I don't wish to be questioned on it. In the past banks did not invade your privacy, but now some of the questions they ask me is none of their business. Sad days!
My bank hasn’t questioned any withdrawals yet, but if they do, I’ll simply tell them “that antique urinal collection on eBay isn’t gonna pay for itself.”
Does redeeming iBond amount affect purchase limit. I.e. if i buy $10k in Jan, say liquidate $10k of older bonds in April, could I then buy $10k more iBonds before the end of the year?
I see that you buy these bonds online. Does one receive a paper stating ownership of the bond? If not what happens if your bond or " account" is lost? What recourse must be taken to recover a bond if someone or somehow they are lost? I don't trust my money to "clouds " or digital 1's and 0's.
Always appreciate the details you provide (esp the table showing redemption) and step by step on how to. I am not ready to sell so will be holding on mine for a bit longer.
Great to see how to redeem I-bonds! On a similar note, can you make videos showing how to sell T-bills on the secondary market? I am trying to do this on TD Ameritrade, and it’s not as straightforward as I thought it would be….
I had the exact same questions about when and how to withdraw .. this video just gave me full details as always 😊. Thanks again for your detail videos.
As usual your video is great at explaining how it works and what the results are for how you handle these choices. Thanks. Nobody explains these various bonds as well as you do. My goto source when I have questions.
Hi Jennifer. Please consider addressing older issue I Bonds as part of your "when to sell" discussion. For example according to TD's I Bond value calculator the bond issued between Nov. 2005 and Apr. 2006 is earning a current Composite Rate of 4.40%. Inflation rate in the US is expected to decrease to 2.1% by 2028. So should one sell I bonds and for example buy instead a 5-year Treasury Note yielding guaranteed 4.4% based on latest TD auction result? It would be an informative discussion keeping in mind that , as you often point out, everyone's financial journey is different. Thanks for providing excellent video tutorials on many interesting subject!!! Have a great weekend...
Thank you for the clear recommendations on when and how to redeem iBond. It saves me a lot of time and still miss the best opportunity to redeem if I struggle through on my own.
I bought mine in April 2022, so I’m definitely going to hold until January 2023 so I don’t lose the 6.48%. I’ll probably actually hold until April just to see what the new rate will be, unless the November 2023 rate is ridiculously low.
Hello Jennifer! Thank you for all your very helpful videos. I watch this video about redeeming I Bonds a few months ago and come back to it now since it's time for me to redeem the the I Bonds that I bought 8/8/2022. I have a few questions before redeeming it: 1) Do I have to close my Treasury Direct account if I withdraw all the money I have in there or can the account be left with zero dollar in there? 2) What if I just don't withdraw and keep the I Bonds, will that continue to earn money? 3) After I make the withdrawal, how will I report the interest when I do the taxes when comes tax time, does Turbotax have steps to report the earning from I-Bonds? I appreciate very much your reply that will help decide how I want to proceed. Thank you very very much!
Jen, two years ago (you recommended) we buy $20,000 worth of I bonds each. I bought one for myself and bought one for my husband. My husband bought one for himself and one for me. How do we redeem the Ibonds in our account listed in our spouses name? Do we have to transfer the bonds to them first or just redeem them and direct the proceeds to their bank account???? We want to redeem all of them (4) at once, is that allowed because they will equal more than $10,000 per person in the same year each?? So confusing. Help!
One thing has me stumped. How did you calculate the annualized I-bond return, upon withdraw, shown in your examples. Thank you for all your great help.
Great video and thanks for putting this together. As someone who bought their i-bond on 5/2022 I'm a bit curious as to the calculation for the second six month total. Currently my i-bond value on treasury direct lists 1076 and no 1082. Is there something i'm missing? Appreciate any assistance!
Thanks for your financial sacrifice for our benefit! Hopefully you are safe harbored with your estimated payments and don't incur penalties from this windfall.
Such useful and easy-to-learn information; you do a great job of explaining the processes as well as your straight-forward rationale! Keep up the outstanding work and I’ll keep subscribing!
Hi Jennifer, In another episode on I Bonds I believe you discussed how to have Treasury Direct withhold Federal Taxes when you redeem your I Bonds. Can you please direct me to that episode? Thanks!
The chart tells me the best time to redeem an I-bond I bought in November, 2021 is February, 2024. Does this mean my 3 month penalty is calculated using the new rate of 3.94 or the old rate of 3.38. I'm a little confused on the timing even though I watched the video. Thank you.
I will be selling SOME of my I-Bonds. I learned that if you hold bonds to maturity - and sit on them to cash them when it is "convenient" - you could be facing an issue with the IRS. After 30 years - they want the tax paid on the earnings. I was going to wait to cash them - (hoping to avoid the taxes until I knew I wouldn't jump a tax bracket). See - my wife and I are retired, and after looking at our other sources of retirement income - I realized I might get whacked when all of our bonds mature between 2031 and 2035. Soooooo - I added "bond redemptions" to my 10-year tax plan. Going to keep the March 2001 bonds until maturity....... they have a fixed rate of 3.4%.
For ibonds purchased in May 2022, what date should I sell them in order to hold them for the three months of lowest interest? Aug 1st 2023? Sept 1st 2023? Exactly 3 months beyond the original purchase date such as 4/5/22 purchase date and 8/5/2023? Other?
I initially invested $100 for each month listed here during the period between 5/2022 and 10/2022, on 6/1, 7/1, 9/1, and 10/1/22, when the interest rate was 9.62% and I was only given a rate of 3.38%, 3.38%, 3.38%, and 6.48% respectively, and the one on 6/1 was a $900 investment! I NEVER received the 9.62% on any of my investments and is there any way to get any answers on Treasury Direct? What happened, why did I not receive the 9.62% during those months?
Thank you for posting this information, as it is helpful. Can you please clear my confusion about delivering gift ibond. Question - Is the 3 months interest penalty applied/payed at the time we deliver the ibond gift to the recipient OR it is applied when our recipient actually cash the gift ibond after delivery? Looking forward to your earliest response.
How do months work with the I-bonds? I've heard you get credit for the full month in which you purchase even if bough late in the month. For instance, if an I-bond were purchased on 15 Jan. 2022, exactly 21 months later is 15 Oct. 2023. Would the earliest suggested withdraw date be 1 Oct, 15 Oct, 16 Oct, 31 Oct, or 1 Nov?
I have several I-Bonds that are designated in my name OR my son. Is there a way I can cash them and use the entire amount of money to buy a Treasury Bill WITHOUT paying taxes on the interest. I have held the I-Bonds for over 5 years.
I think you can redeem ibond in 12 months now (instead of 18) : Here is what the website says : You can cash in (redeem) your I bond after 12 months. However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest.
Thanks Jennifer for your i-bond insights. I have a clarifying question re: timing of my i-bond redemptions. You suggest I redeem my 12/13/21 purchase date i-bonds after a 21 month holding period to take advantage of better yields elsewhere. My question is, on what specific date should I optimally redeem those i-bonds to satisfy your suggested 21 month holding period? Is it exactly 21 months after my purchase date (i.e. 9/12/23) or must I hold those i-bonds for the full calendar month (or until 9/30/23) in order to satisfy the 21 month holding period. Thank you!!
If life goes well for me, I plan to hold until maturity. How do we claim taxes each year so we aren't hit with a big bill? Possible video? I don't imagine Treasury makes that easy 😅
So if you redeem a portion, does the rest continue to earn interest? Do you only lose 3 months worth of interest on just the portion you redeem? 25 bucks in your example.
The 15th month for me would be August. IF I am understanding you correctly, I should redeem towards the beginning of September to allow August to complete the 15th month? Yes? Thanks for your help Jennifer.
If you cash out part of the bond before time, what is the 3-month interest penalty? Is that only on the interest on the amount you are taking out or the original amount? In $25 example, would that be only $0.41 penalty ($25 * 0.0648 / 12 * 3 = $0.405)
Can someone spell it out for me - if I want to redeem after 15 months (say I originally purchased in Sep ‘22), then month 15 is December. I should then redeem on 1/2/24 to take the early penalty for the last 3 months (Oct-Dec)?
Jennifer, I redeemed one IBond and when I checked my account, it looks like two rather one were missing. How do I check for redeemed IBonds or who to contact regarding the one that’s missing. Thank you in advance.
question, I bough 2 Ibonds worth 20K(myself & gift to spouse) in May 23rd 2022. I wanna redeem them at month 15th which is Aug 2023 right? but not sure what time (beginning or end) during the 15th month should we redeem Ibond?
I invested in October 1st 2022, and when I click on redemption, I don't see anything. Does that mean I have to wait for at least a full 12 months before redeeming becomes possible?
Thank you for another helpful detailed tutorial, giving the extra effort to provide accurate information. I will be redeeming ours after holding them the extra three months. You are definitely the Ibond guru!
As always fantastic info, I have a question if I may , I know about the 3 month ( early penalty ) but if I was to redeem 1 years and 1 day , would I be credited for that month, and only be penalized 2 months ?
Thank you for this video. My bond will be 1 year old May 10th , so I know now to redeem on August 10th. Thanks again young lady. Sincerely Yours; Bill....
Does your husband have a finance background as well? Ty for doing all these videos, they've been really helpful over the past months. Also, are you planning to just hold the ibonds for the full 5 years?
Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that: 1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances & 2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY.
> > WATCH NEXT < <
⭐ Why We're Buying More 5.4% I-Bonds In 2023: ruclips.net/video/hwBPBWRht3I/видео.html
⭐ I-Bond Gifting 101: ruclips.net/video/bSoZJJypSAQ/видео.html
⭐ Buy I-Bonds Or TIPS In 2023: ruclips.net/video/JKbvtdcsPSM/видео.html
⭐ Best Money Market Funds vs Cash 2023: ruclips.net/video/N53wZ_80abU/видео.html
Great tutorial ! I will watch it again before I begin to redeem. The info on no interest in the month of redemption is something I was unaware of.
@@eddenoy321 As I understand, it's an offset for the fact that you earn interest for the entire month of purchase even if you buy at the end of the month. It all works out if you time it right.
@@Mike-bq4ot Makes sense , my forensic accounting colleague.
I purchased an I Bond on 8/30/2022 and would like to redeem it at the 15 month point. If I redeem the I Bond on 10/1/2023, would that be considered 15 months? Thanks.
Providing the step-by-step instructions to achieve a particular objective is invaluable to those of us who have not done so before or have not done so in a long time. It precludes we novices from bumbling through the process to do so. Thanks.
Well said river nuts. 🎉
Your meticulous and crystal clear explanations are so valuable to me and my family. Since 7.12%, I have gradually moved our family's entire emergency fund as well as other mid-term savings (time horizon: 2-3 years) into i-bonds, and this video helps me plan the next steps as I partially liquidate. I hope this tip balances out the returns you negated by redeeming your $25 of bonds for educational purposes. :) Thanks again!
You’re welcome Charles 😀
I redeemed my 1-year old I-Bond yesterday. Even with the penalty it was a great trade for a risk-free instrument. Thanks for the guidance. I met my goals and appreciate your clear information on the topic!
By the way, Treasury Direct was quick with the redemption. I applied Sunday night and it hit my bank account Tuesday morning.
@@_-Karl-_ 3 months of 6.48% over past 3 months
@@merlion17Yes, the last three months interest are forfeit if you redeem in less than five years.
@@_-Karl-_ I ended up getting 6.04% interest for one year holding from last April, combining the two rates in effect for each half year and subtracting the three month penalty.
@@_-Karl-_ Hello. I thought the TD platform would show you the penalty before you hit the redeem button. Am I wrong ? Or I have to subtract the penalty manually? I will redeem some ibonds after the 21st month mark in July but I don't want to pay any more EWP than I have to. Maybe I missed that in the video. Thank you.
Great info. Thank you for confirming that partial I bond withdrawals are an option.
Jennifer you are a real trooper to redeem that $25.
I like you are not really ready to part with any of my I bond holdings. Great tutorial as always.
You are the BEST ! Treasury direct should pay you for all this great info you give us 👍
Just redeemed one I have held for 15 months and it looks like I netted 8.52% overall, so that worked out well! Great teaching Jennifer!
FYI I don’t know if this is fully risk free anymore if they don’t raise the debt ceiling. Nobody can say for certain if they will and what happens if they don’t to your principal or interest. Any other time in history I’d agree these are risk free.
The tutorial and explanation otherwise is perfection. Well done. I own the max I bonds allowed the last two years for me and my wife so hoping the ceiling gets raised.
I had no idea that we can redeem a portion of an I-bond. So thankful for you Jen!
ditto
I'm coming late to the world of I-Bonds, but I like them for the reasons you've stated. I've learned so much from your videos. Sincere thanks!
Can you do a video on when it makes sense to redeem old bonds (after 12 months but under 5 years), lose the 3 months interest and buy new bonds to capture the new fixed rate of .9%?
had to come back to this video today to confirm my understanding and it was perfect. Just redeemed my May 2022 I-bond. and just decided to wait until month 21 to redeem my April 2022 paper bonds. yes, paper! LOL
Glad the video was helpful!
Many of us bought in April of 2022 and I calculated the ideal time to sell that specific bond would be at the beginning of January of 2024 where you forfeit the 3 months of 3.38% interest.
Don't forget your base rate of .40 % (it may change next month as well).
@@eddenoy321 I don't think this is correct as the specific I-Bond purchased in April of 2022 carries a 0% fixed rate.
@@vivisimonvi " I Bonds issued from November 2022 through April carry a 0.4% fixed rate, a rate that applies for the 30-year life of the bond. "--(google). This could change in May.
@@eddenoy321 November 2021 - April 2022 carries a 0% fixed rate. Many of us bought in that period.
@@vivisimonvi Ok you are correct. I thank you for pointing it out to me "The fixed rate stays the same for the life of the bond." - (google). Well that does change things. Is this shown in the ibond history on the TD website as well ?
I am actually getting 9.6% on some older I bonds right now and also 7.6% on some others............. bought in 2001 and 2004.........
Thanks for the video - you went the extra mile! Kudos!
such valuable, important information learned here. I came in at 9.62% and thanks to your recommendation, will hold for 15 months and return here for the step by step directions to redeem them. thank you very much.
How about redeeming the The I-Bond check from tax return?
Great tutorial. I will refer back in three months when I am ready to cash out.
In the box for Redemption Instructions “Select payment destination to credit” what entry is being requested? The bank name? The bank routing number? The account number ? Thank you so much for clarifying the ambiguous information the website offers.
Impressed with the clarity in definition in everying you are explaining.👍👍
All good advice, if we hadn't bought gifts at 9.62% in 2022 to exchange in 2023. That is why my strategy is to just redeem and don't buy in 2023. Now if fixed rate were to jump above 1% in May, maybe we would buy more gifts to exchange in 2024!
Can you do a video on debt ceiling and risk to treasuries?
Hard to do a video on something that has never happened. If we default on our debt - we will have bigger issues than our IBonds
Can you redeem iBonds to buy new iBonds in the same transaction? Or must you redeem first, get the cash back, then transact to buy new iBonds? I cannot find anything about this process. Thank you for your videos!
Not sure when I'm going to redeem (started in October of 2021), but thank you for going thru the process. I like the partial withdraw option.
I purchased a 10K I-Bond in December 2021 and April 2022 (both beginning at 7.12%) but their interest does not quite match the table presented at 1:34. For example instead of $360 in the first six month period my interest was $356.
This is a timely video. I'm coming up on 12 months but will wait for 15.
Glad the video was helpful
Best plan is to hold for the 15 months then cash in.
Thanks for sharing
This was great info! Sorry you had to redeem part of your I bonds to show us how to do it 😕
Thanks for this video! I will hold my I-Bond for at least 5 years or until my grandchild needs the funds for college or a first car.
Do you believe that the fixed rate on i bonds will increase when they begin cutting interest rates or decrease? So right now it is 1.3% should i put all my money to lock in this rate that is here or will this high rate stick around a while?
Thank you SO MUCH for the step-by-step! Now I feel very confident. Your $25 redemption is greatly appreciated! In particular, the advice on redemption at month 15 and that it doesn’t make a difference doing so in beginning or end of calendar month was spot-on precisely what I need. Crystal clear video. Love it.
Hi Jennifer! Thanks so much for another great video! I'm not getting out of my I bonds quite yet but some of my T-bills are maturing. I would love more information on the federal withholding option in Treasury Direct. I saw you had yours at zero. I would love to understand your thinking and strategy.
How do I figure out a ballpark number how much to withhold in TD or how much to set aside elsewhere for tax year 2023?
If I decide to withhold in TD, how and where do you click through to set it up?
Thanks! 😊
The bank I use has gotten really bad about questioning me and my family about any larger transactions we conduct using our accounts. I got to the point where I call the bank manager first and tell him a larger transaction will go through in the coming days and I don't wish to be questioned on it. In the past banks did not invade your privacy, but now some of the questions they ask me is none of their business. Sad days!
They are trying to avoid fraud, which is to your benefit.
My bank hasn’t questioned any withdrawals yet, but if they do, I’ll simply tell them “that antique urinal collection on eBay isn’t gonna pay for itself.”
Does redeeming iBond amount affect purchase limit. I.e. if i buy $10k in Jan, say liquidate $10k of older bonds in April, could I then buy $10k more iBonds before the end of the year?
Would be AMAZING if redeeming could be scheduled.
Great video. Very detailed. It may help to know that to set the withholding amount, it's under Account Info. "Manage Account" seemed more logical.
I see that you buy these bonds online. Does one receive a paper stating ownership of the bond? If not what happens if your bond or " account" is lost? What recourse must be taken to recover a bond if someone or somehow they are lost? I don't trust my money to "clouds " or digital 1's and 0's.
Always appreciate the details you provide (esp the table showing redemption) and step by step on how to. I am not ready to sell so will be holding on mine for a bit longer.
Great to see how to redeem I-bonds! On a similar note, can you make videos showing how to sell T-bills on the secondary market? I am trying to do this on TD Ameritrade, and it’s not as straightforward as I thought it would be….
I had the exact same questions about when and how to withdraw .. this video just gave me full details as always 😊. Thanks again for your detail videos.
As usual your video is great at explaining how it works and what the results are for how you handle these choices. Thanks. Nobody explains these various bonds as well as you do. My goto source when I have questions.
Hi Jennifer. Please consider addressing older issue I Bonds as part of your "when to sell" discussion. For example according to TD's I Bond value calculator the bond issued between Nov. 2005 and Apr. 2006 is earning a current Composite Rate of 4.40%. Inflation rate in the US is expected to decrease to 2.1% by 2028. So should one sell I bonds and for example buy instead a 5-year Treasury Note yielding guaranteed 4.4% based on latest TD auction result? It would be an informative discussion keeping in mind that , as you often point out, everyone's financial journey is different. Thanks for providing excellent video tutorials on many interesting subject!!! Have a great weekend...
Thank you for the clear recommendations on when and how to redeem iBond. It saves me a lot of time and still miss the best opportunity to redeem if I struggle through on my own.
Thanks for the sacrifice inorder to educate 🙏
I bought mine in April 2022, so I’m definitely going to hold until January 2023 so I don’t lose the 6.48%. I’ll probably actually hold until April just to see what the new rate will be, unless the November 2023 rate is ridiculously low.
You have to hold them for at least 1 year. But it’s already April 2023, so you can redeem anytime now! 😂
Hello Jennifer! Thank you for all your very helpful videos. I watch this video about redeeming I Bonds a few months ago and come back to it now since it's time for me to redeem the the I Bonds that I bought 8/8/2022. I have a few questions before redeeming it: 1) Do I have to close my Treasury Direct account if I withdraw all the money I have in there or can the account be left with zero dollar in there? 2) What if I just don't withdraw and keep the I Bonds, will that continue to earn money? 3) After I make the withdrawal, how will I report the interest when I do the taxes when comes tax time, does Turbotax have steps to report the earning from I-Bonds? I appreciate very much your reply that will help decide how I want to proceed. Thank you very very much!
Jen, two years ago (you recommended) we buy $20,000 worth of I bonds each. I bought one for myself and bought one for my husband. My husband bought one for himself and one for me. How do we redeem the Ibonds in our account listed in our spouses name? Do we have to transfer the bonds to them first or just redeem them and direct the proceeds to their bank account???? We want to redeem all of them (4) at once, is that allowed because they will equal more than $10,000 per person in the same year each?? So confusing. Help!
Thank You for all the information you provide on I bonds. Bought 10k worth @ 9.62 and contemplating what to do come July 1st +3 months. 🤔
One thing has me stumped. How did you calculate the annualized I-bond return, upon withdraw, shown in your examples. Thank you for all your great help.
I've held my i-bond since November of 2021 and would like to figure my rate of return over the 2 years.
Thanks for the easy to follow instructions for redemption of Net Payment.
Great video and thanks for putting this together. As someone who bought their i-bond on 5/2022 I'm a bit curious as to the calculation for the second six month total. Currently my i-bond value on treasury direct lists 1076 and no 1082. Is there something i'm missing? Appreciate any assistance!
Thanks for your financial sacrifice for our benefit! Hopefully you are safe harbored with your estimated payments and don't incur penalties from this windfall.
Thank you so much for your time for showing us this step by step process of withdrawing from an I-Bond account. You made it look so easy to do.
Such useful and easy-to-learn information; you do a great job of explaining the processes as well as your straight-forward rationale! Keep up the outstanding work and I’ll keep subscribing!
Hi Jennifer, In another episode on I Bonds I believe you discussed how to have Treasury Direct withhold Federal Taxes when you redeem your I Bonds. Can you please direct me to that episode? Thanks!
Here you go Scott: ruclips.net/video/PEWRMfbNgLs/видео.html Eva (Team DNE)
Thank you so much!@@DiamondNestEgg
The chart tells me the best time to redeem an I-bond I bought in November, 2021 is February, 2024. Does this mean my 3 month penalty is calculated using the new rate of 3.94 or the old rate of 3.38. I'm a little confused on the timing even though I watched the video. Thank you.
As always, huge thanks for the update on I-bond redemption and a whopping $1.42 interest gain 😂
How do I redeem a 10-year i-bond purchased through a bank no longer existing?
Thanks!!! I was so excited to buy last year... but never checked out how to get it back 😂... now I know thanks
I will be selling SOME of my I-Bonds. I learned that if you hold bonds to maturity - and sit on them to cash them when it is "convenient" - you could be facing an issue with the IRS. After 30 years - they want the tax paid on the earnings. I was going to wait to cash them - (hoping to avoid the taxes until I knew I wouldn't jump a tax bracket). See - my wife and I are retired, and after looking at our other sources of retirement income - I realized I might get whacked when all of our bonds mature between 2031 and 2035. Soooooo - I added "bond redemptions" to my 10-year tax plan. Going to keep the March 2001 bonds until maturity....... they have a fixed rate of 3.4%.
Thanks for sharing!
For ibonds purchased in May 2022, what date should I sell them in order to hold them for the three months of lowest interest? Aug 1st 2023? Sept 1st 2023? Exactly 3 months beyond the original purchase date such as 4/5/22 purchase date and 8/5/2023? Other?
I initially invested $100 for each month listed here during the period between 5/2022 and 10/2022, on 6/1, 7/1, 9/1, and 10/1/22, when the interest rate was 9.62% and I was only given a rate of 3.38%, 3.38%, 3.38%, and 6.48% respectively, and the one on 6/1 was a $900 investment! I NEVER received the 9.62% on any of my investments and is there any way to get any answers on Treasury Direct? What happened, why did I not receive the 9.62% during those months?
Thank you for posting this information, as it is helpful. Can you please clear my confusion about delivering gift ibond. Question - Is the 3 months interest penalty applied/payed at the time we deliver the ibond gift to the recipient OR it is applied when our recipient actually cash the gift ibond after delivery? Looking forward to your earliest response.
How do months work with the I-bonds? I've heard you get credit for the full month in which you purchase even if bough late in the month. For instance, if an I-bond were purchased on 15 Jan. 2022, exactly 21 months later is 15 Oct. 2023. Would the earliest suggested withdraw date be 1 Oct, 15 Oct, 16 Oct, 31 Oct, or 1 Nov?
I have several I-Bonds that are designated in my name OR my son. Is there a way I can cash them and use the entire amount of money to buy a Treasury Bill WITHOUT paying taxes on the interest. I have held the I-Bonds for over 5 years.
Jennifer，can you please do a video on T-notes? Is it worth to invest? Comparing with t- bills and cds what’s pros and cons? Thanks
Your videos are always so easy to follow and very educational! Thank you for sharing and for your expertise. I’m a fan!!
I think you can redeem ibond in 12 months now (instead of 18) :
Here is what the website says :
You can cash in (redeem) your I bond after 12 months.
However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest.
I always thought the amount that is shown is with the 3 month penalty factored in so would it really matter if its month 12 or month 18
Thanks Jennifer for your i-bond insights. I have a clarifying question re: timing of my i-bond redemptions. You suggest I redeem my 12/13/21 purchase date i-bonds after a 21 month holding period to take advantage of better yields elsewhere. My question is, on what specific date should I optimally redeem those i-bonds to satisfy your suggested 21 month holding period? Is it exactly 21 months after my purchase date (i.e. 9/12/23) or must I hold those i-bonds for the full calendar month (or until 9/30/23) in order to satisfy the 21 month holding period. Thank you!!
That whopping $1.42...that will put you into the next tax bracket, for sure! Thanks for another great video!
If life goes well for me, I plan to hold until maturity. How do we claim taxes each year so we aren't hit with a big bill? Possible video? I don't imagine Treasury makes that easy 😅
So if you redeem a portion, does the rest continue to earn interest? Do you only lose 3 months worth of interest on just the portion you redeem? 25 bucks in your example.
Thank you for the step by step instruction and use real example with your $25 redemption.
The 15th month for me would be August. IF I am understanding you correctly, I should redeem towards the beginning of September to allow August to complete the 15th month? Yes? Thanks for your help Jennifer.
What Is The Best Month To Redeem I-Bonds | When To Redeem I-Bonds
ruclips.net/video/cBYD7MdXzG4/видео.html
Great information. Thanks.
Are there any US banks, credit unions, or investment houses that still are redeeming these bonds???
If you cash out part of the bond before time, what is the 3-month interest penalty? Is that only on the interest on the amount you are taking out or the original amount? In $25 example, would that be only $0.41 penalty ($25 * 0.0648 / 12 * 3 = $0.405)
Thanks Diamond, I was hoping I could just sell the interest portion and keep the principal, not possible it seems.
Thank you again for your clear, concise directions and sound advice.
Can someone spell it out for me - if I want to redeem after 15 months (say I originally purchased in Sep ‘22), then month 15 is December. I should then redeem on 1/2/24 to take the early penalty for the last 3 months (Oct-Dec)?
Jennifer, I redeemed one IBond and when I checked my account, it looks like two rather one were missing. How do I check for redeemed IBonds or who to contact regarding the one that’s missing. Thank you in advance.
Very easy guide and super well explained in detail. Thank you !!!!
Can you transfer your individual I-Bond balance into another individual I-Bond where the interest rate is higher?
How do you add a bank account to redeem/withdrawal ibonds out?
question, I bough 2 Ibonds worth 20K(myself & gift to spouse) in May 23rd 2022. I wanna redeem them at month 15th which is Aug 2023 right? but not sure what time (beginning or end) during the 15th month should we redeem Ibond?
Can you add a different bank account you want it deposited in?
Yes
I invested in October 1st 2022, and when I click on redemption, I don't see anything. Does that mean I have to wait for at least a full 12 months before redeeming becomes possible?
I really need help. I could not redeem my saving I bond. It did not even give me the option. What shall I do?
Your are the best! Very clear explanations of convoluted rules and cumbersome interfaces associated with US Treasury services. Thank you!
Your videos are very helpful...thanks Jennifer.
Thank you for another helpful detailed tutorial, giving the extra effort to provide accurate information. I will be redeeming ours after holding them the extra three months. You are definitely the Ibond guru!
Thanks for sharing!
As always fantastic info, I have a question if I may , I know about the 3 month ( early penalty ) but if I was to redeem 1 years and 1 day , would I be credited for that month, and only be penalized 2 months ?
Thank you for this video. My bond will be 1 year old May 10th , so I know now to redeem on August 10th. Thanks again young lady. Sincerely Yours; Bill....
@@_-Karl-_ Thank you
Thank you for your clear step by step explanation. It is greatly appreciated.
thank you, you made this so easy for us!
Thank you for the video but I’m also curious what’s the process for redeeming iBonds that are physical certificates?
Thank you for going thru the process.
Any pros or cons of having treasury direct do the tax withholding for you? Is this explained in any of the videos? thanks!
Does your husband have a finance background as well? Ty for doing all these videos, they've been really helpful over the past months. Also, are you planning to just hold the ibonds for the full 5 years?
Thank You .was wondering how to redeem my I bond..you make it easy..great videos and advice..