I Bonds EXPLAINED: I Bond 9.62% Interest Confirmed! HOW MUCH COULD YOU EARN?
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- Опубликовано: 26 июл 2024
- It’s official! The I-Bond 9.62% interest rate was just announced by TreasuryDirect & this video - I-Bonds Explained: I-Bond 9.62% Interest CONFIRMED HOW MUCH COULD YOU EARN - will walk you through:
1) How much interest will you earn during your first 12-month-holding period if you purchased your I-Bonds between November 2021 & April 2022
2) How much could you earn during your first 18-month-holding period depending on where inflation is headed (if you purchased your I-Bonds between November 2021 & April 2022)
3) How these numbers change if you purchase your I-Bonds between May & October 2022
And in the very end, I’ll talk about all the ways you can buy I-Bonds for your portfolio via TreasuryDirect
I Bonds 9.62% rate is the highest semi-annual inflation rate since I-Bonds were first introduced in 1998. If you’ve been pondering questions like:
- What is an a I-Bond?
- Should I buy I-Bonds in 2022?
- Should I buy I-Bonds now or wait?
- Or even more specifically, should I buy I-Bonds in May 2022?
- I-Bonds how to buy?
I’ll cover that in this video so watch on!
TIME STAMPS
0:00 Intro
1:35 I-Bond 9.62% Interest Calculation
2:44 I-Bond Nov 2021 Thru April 2022 Buyers
7:59 I-Bond May 2022 Thru Oct 2022 Buyers
10:20 How To Buy I-Bonds
WATCH NEXT
⭐ 2022 November I-Bond Rate Prediction: • I Bond Interest Rate N...
⭐ How To Buy An I Bond (step-by-step tutorial) via TreasuryDirect:
• How To Buy An I Bond: ...
#jenniferlammer #firstgeneration #bonds
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WATCH NEXT >>> How To Buy More Than The Annual I Bond Limit (I Bond Loophole): ruclips.net/video/bSoZJJypSAQ/видео.html
>>> I-Bond Gifting Tips & Must-Knows: ruclips.net/video/2UBXXQUxJ4M/видео.html
>>> How To Buy An I Bond (step-by-step tutorial): ruclips.net/video/adzmox__2zM/видео.html
>>> How To Buy I-Bonds For Kids (step-by-step tutorial):
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>>> How To Buy I-Bonds For Business (step-by-step tutorial):
ruclips.net/video/4f-ZIoiOFt0/видео.html
>>> TIPS vs I Bonds (What's The Better Inflation Hedge): ruclips.net/video/bIq8XXo4Vfo/видео.html
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Thank you four sharing of links.
Thank you again.
You’re videos have been super helpful, thank you! I’ve been having some trouble adding a beneficiary to my bond and I’m hoping perhaps you could do a quick video tutorial?
@@ArtSmartSvcs101 it’s coming out in the next day or two & will walk you through everything step by step
@@DiamondNestEgg wow what a fast response! Thank you!!!
Finally someone who can explain things clearly and directly without taking 20 minutes! Subscribed!
So many videos are just hype, but yours is solid calculation and examples! Amazing. Thank you!
Hi Jennifer,
Thanks for the informative video. My wife and I bought our I bonds yesterday with your help. What a great service you are providing!
Love your video. Great explanation and very understandable. I love ice-cream and hate how the prices have gone up on that and so much more. Keep the videos coming. Thank you!!
Hey Jennifer! I was just talking about this in my recent video! The more I dig into I Bonds..the more I wonder why I didn't discover this before!!! But we know now right? LOL. Thank you for always producing insightful content. I told several people about you and your channel so we can get you out there to the masses!! HUGS!
Thanks for sharing!! And yes, let's get the word out!
I love your videos. They are so clear and concise!
Thank you so much!
Bought a week ago. Loving this new rate!
Thank you. Great video! Keep up it coming….
Ah Jennifer, my diamond nest egg guru! Good to see the amounts you calculate as we keep a spread sheet of monthly interest earnings and this helps us calculate for our first I-bonds we're buying. One for each spouse and one gifted to each of the other. Great place to invest for now. Sooooo much better than the alternatives. Thanks for all the information you share so generously. You're husband and children are fortunate, and you wear such great clothing, we enjoy seeing you! Your personality is a great one on RUclips.
Thanks! If you're new to I-Bonds, I'd suggest checking out the post under our "Community" tab from last week - there's a photo attached to it that says "Where's My I-Bond Interest?" Even though you're earning interest every month on your I-Bonds, this won't show up until after the 4th month in your account. The post explains why.
@@DiamondNestEgg Done and understood. You're so great with sharing your knowledge and we're grateful and appreciative!
I'm not the brightest bulb, however, I did alittle research & took what I could tolerate and purchased at the end of April 2022 to capture the full month & enjoying going into 9.62%.
Glad I found your videos.
Thank you! Very clean and well organized explanation!
Thanks for this explanation. I just bought my first 10k of I bonds.
Thank you! couple days left to get I bond!!!
Thank you very much for your valuable information. I got it on April 28, 22.
Amazing video! Will definitely be putting some of that cash just sitting in my bank account into these I bonds after watching this 😀👍
Great video thank for the explanation.
Bought mine 12/27/21 and 4/27/22. Sitting pretty.
Thanks for the great video. It would be cool if you did a video on future IBonds if rates go up? Speculation examples?
Thank you for posting this video. The last time bank gave me 10% interest was during jimmy carters administration … Why not taking this offer and not worry how long it lasts !
You‘re welcome!
Great info!
Great video!
Love your videos. Could you make one about paying taxes on the interest annually or at the end of the bond when you sell? Pros / cons by? Potential costs…if possible.
Thanks! Already on it - we have this video planned for Sept/ Oct (before tax time)!
Thank you for your info. Just opened account and bought $10K. Planning open another acc for my wife later. We will buy another as gift for total $40K. My money sitting in checking accounts for 0% interest for many years.
Jennifer - Great content! I would love to see you do a video on using seasoned I Bonds as an Emergency Fund.
It’s on the list - keep those ideas coming!
Just learned about I bonds and this is my plan. 1k every 6 months and when I get to 15k I probably won't pay too much attention to it unless a better emergency fund investment vehicle comes along.
@@Rachel-zc8urThe annual purchase limit via TD is $10K per calendar year + up to $5K with your tax refund (or less if your tax refund is less)
@@DiamondNestEgg thanks!
Now I need to begin thinking about setting up a trust. lol
seems like core inflation will start easing from now on. Perhaps we will need to start to talk about when to offload I Bonds if they go down drastically
When the interest rate of latest I-Bonds is giving you less than the comparable CD interest rate at a bank, it's time to move your money to the bank (my opinion).
Not happening when war in Europe still going on and Biden spending spree
You don’t have much choice 😂.
I bought 10K and will sell them after 5 years. Interest on interest make it not a bad investment at all.
You have a choice, you can sell after 12 months with a 3 month penalty. Even if it went to zero, you could hold for 3 months and owe zero penalty. It won’t go to zero because this administration is horrendous.
Do you folks really think that the Inflation rate will come down "Drastically" in Novemeber 2022 to May 2023? With the current WH administration? Oh, they will intergrate "trickery" into the calculations best they can, to reduce Interest Costs form the Money They are Borrowering form YOU. Where vare you going to get rates like these form Bank CDs, or other comparable Low Risk places to put your spare Cash (that's the Key Word, Spare Cash)
My oldest I bonds (from 2000) will be earning 13.39%. 😉
That's pretty awesome
Hi this is so helpful! Where is the direct source of inflation numbers so I can track it myself too?
www.bls.gov
Jennifer, great Video about the I Bonds. So, the way I interpret this is : Bond Purchase 4/26/22 (From what I think I read, you receive interest form April 1), interest is 7.12%, annualized , for 6 months, then from October for the next 6 months - April 2023 the rate is 9.62%? Then the rate will adjust to the November rate adjustment (assuming it is 8%) , the Bond earns 8% per annum from April 2023 to October 2023? Do I have that right?
Almost! Using your example of buying on April 26, you would get:
7.12/2 for the total period April (1st) - Sep 22
9.62/2 for the total period Oct 22 - Mar 23
Whatever the Nov 22 rate will be/ 2 for the total period Apr - Sep 23
Jennifer... another question. If I've bought $10k of I-Bonds each for my wife and me, and another $10K of I-Bond gifts for each of us at the same time ($40K total) on April 27, 2022; and then in January 2023 we transfer the I-Bond gifts ($10K each) to each other, can we make a $40K (plus interest) withdrawal next May 2023, minus the last 3 months of interest? The I-Bond gifts have satisfied the 1 year waiting period, just like my original purchases. It would be like having a 1-year $40K CD for us.
As we read it, yes! I'd give it a few extra days just to be on the safe side - first/ second week of May 2023 (but that's just me)
Please make a video about a trust. I think many people want to know about it. Thanks!
It’s coming later this month
Thank you again for your videos!
I have another question. Can you purchase your own I-Bonds and also be a beneficiary on someone else's I-Bond, i.e., a parent? Thank you!
I have a video coming out this week on this, but yes - you can buy your limit and then be named on your parents as the beneficiary
@@DiamondNestEgg That's great news! Looking forward to your video! Thank you!
Love the video! Thanks for the info! I have a question about holding period. Is the rate locked for the period that I hold them for 6 months, or just the May/November 6 month period. For example, if I buy I Bonds on October 31st at the 4.81% semi-annual rate, and then November 1st it drops to 0, am I locked in for 6 month at 4.81 or would it automatically go to 0? Sorry if that's confusing. Thanks!
To answer your question, if you buy in October 2022, you're locked into the 4.81% for 6 months. BUT I wouldn't recommend waiting until October 31st - if you do that, the purchase only goes through the following business day - or possibly even later if their systems are backlogged as they have been - so you'd get the November 2022 rate, whatever that may be. If you're new to I-Bonds, I'd suggest checking out this video - it walks you through I-Bond basics + how to buy: ruclips.net/video/adzmox__2zM/видео.html
@@DiamondNestEgg Thanks Jennifer!
If I leave it past 5 years and withdraw it on the 6th year for example, do we still get penalize for 3 months interest? Or mature 30 years?
No 3-month penalty after 5 years (you get it all)
If one bought a I bond in April 2022 , when will one declare the interest earned on his or her taxes ? when they sell the I bond or on an Annual bases ?
Most people report upon redemption - you can also do it on an annual basis, but it gets very complicated
I got 9.73% on 2 i-bonds
I am a First time “I Bond” buyer. Just curious if you have a video explaining how and when the interest is credited to your I Bond acct online, or if you can go over once you have purchased and I Bond, what happens next. I checked my online acct and nothing shows for the April interest. Thank you!
If you go to the Community page of our channel, you will see a post from today actually that walks through this. I will do be putting out a video shortly on this.
Is the $10k per year, 12 months between purchase or calender year? can i buy in May and then Jan?
You can buy anytime in each Calendar Year. If you buy 10K in December, you can buy another 10K in January.
Question - My checking and savings accounts are in a Living Trust with myself as the Trustee. I would like to open an individual treasury account and buy an I bond. Is funding my I bond using either my checking or savings account going to cause a problem?
I don’t know the answer to this - sorry. Do you have a trust account set up with TreasuryDirect already? Might be easier/ cleaner to do it that way.
You’re not really gaining, but protecting what you all ready have. !
Correct - better than if you simply left your excess cash in the bank currently
So many questions. (1) When is the fed gift tax form 709 due for buying a gift i bond? The year when the i Bond gift is purchased? Or when it is delivered (from the gift box)? (2) If the gift reporting is only when the gift is "delivered", aay a gift i Bond has sat in the gift box for a few years, and there is interest accrued. Is the value of the gift (for purpose of IRS reporting, as necessary) inclusive of the interest earned, or just the face value of the bond? Thanks.
You submit 709 for the tax year that you buy the gift bond (not the year of delivery) - so for example, if you gift your child more than $16K in 2022, you file 709 typically between 1/1/23 and the tax deadline 4/15/23. Check with your tax advisor if gifting between spouses - the gift tax usually doesn’t apply in this case but I don’t know the specifics of your situation.
Hi, your vedios are really great, quick question if I bought an ibond in August 22 can I buy more in January 23 or wait till August 23
Jan 2023 & thanks! Do help spread the word/ love on our channel 🙏
In the chart at 3:52 you are showing $854 of total interest earned. In your video "I-Bond Interest Explained: When Does It Show Up & What's The I-Bond Calculator Formula?", at around 23:32 the chart shows $856 earned. I come up with $856 using the formula that you explained (so awesomely!). What explains the difference?
I seem to recall you saying in the other video that the TD online calculator was off by $2. Did you use the calculator in this video?
I didn't use the calculator or formula in this earlier video - I only deciphered the formula when my numbers weren't matching up (as well as the numbers for other supersavers here). It has to do with the formula rounding in the $856 video.
Can you buy I bond if the trust is a irrevocably trust (grantor trust) which use the same ssn of the individuals
Yes - you have to set up a separate trust account with TD - I'll have a video coming out on this in May
I bought 10000 ibond after I watch your video on April 26, my questions is if I plan to withdraw my ibond at year 5 , how much in total i will received??
Thank you
No one knows. The only exact number you know is 6 months in advance being up to November in this case. Why you might ask? Good question, answer is; we don’t know where inflation might be in the next 6 months it could go up or it could go down but the exact number is unknown.
If the economy heals itself and inflation goes down so does your I Bond interest you get back, if it gets worse and inflation goes up you get more out of your Bond money.
No one knows what interest rate you will get a year from now (or the interest rate set in Nov 2022). But you can never lose money from the interest you've already accrued
I’m trying to start
This will help: How To Buy An I Bond: Step By Step Tutorial | What To Do During Inflation
ruclips.net/video/adzmox__2zM/видео.html
Thank you for your video! I checked my account to see the interest it made so far but It doesn't show, is there a way to see that or we just wait until we cash it out to view how much our money so far made?
If you go to the Community Tab, there is a detailed post from last week that talks about when interest is earned on your I-Bonds vs when it is accrued/ shows up in your online dashboard.
@@DiamondNestEgg okay great, I will check it out. Thank you 🙏
Where could I Bond rates go with the current fed adjustments? Any predictions? That would make a good video.
It’s on the video list
thank you for making this video quick question tho, does the 3 month interest losing period still apply if you sell the bonds less than 5 years for the purpose of education? thanks!
Yes it applies
@@DiamondNestEgg Thank you as well! In your $10K example, what does that 3 month interest value equate to? Apologies for the silly questions as I'm having a hard time calculating it myself
@@michellefrancisco6104 Our latest video on how I-Bond interest is calculated, when it shows up in your TD account/ the 3-month penalty, etc. will walk you through what you're looking for: ruclips.net/video/9hfHoSijJEk/видео.html
@@DiamondNestEgg amazing thank you!
Thank you for this video, very informative. question: in my situation, I bought an I-Bond in mid September which makes my effective purchase date September 1st. TD still shows the I-Bond earning 9.62% here on November 7th even though the new interest rate is 6.89%. To calculate interest earned on my I-Bond, I assume I will earn 9.62% for September and October (9.62%/6), plus (6.89%/2) for the next 6 month period (Nov 22 - Apr 23), plus some interest rate (??%/3) for the next four months. Is that correct. Thank you.
This video on I-Bond interest should provide more clarity: ruclips.net/video/9hfHoSijJEk/видео.html
Don’t think this is for me but decided to learn about it anyways. I do have one use case, can you use bonds as collateral to lower interest on a loan?
That would be lender-dependent - I’d suggest checking with them
What happens if I buy in August? Does the interest still calculate in the semi annual rate at that time or will adjust with the new rate after november
Thanks
Over the first six-month period from the Aug purchase date, you get the the 9.62/2. Over the 2nd six-month period, you get the then prevailing ANNUALIZED I-BOND RATE/2 (this new rate will be announced in Nov).
This video section walks you through how the rate reset/ adjustment works: ruclips.net/video/adzmox__2zM/видео.html
And this one goes through how the interest is calculated & when it actually "shows up" in your account: ruclips.net/video/9hfHoSijJEk/видео.html
Also, if I buy a gift i Bond and name a primary + 2nd owner on the gift, is it considered a gift to ONLY the first named (primary) donee (for calculating the annual exclusion)?
You can only add a beneficiary on a gift bond - no 2nd owner - so it is considered a gift to the primary owner since there is only a primary owner
Any videos on how to start and understand??
This is the best video to start with: How To Buy An I Bond: Step By Step Tutorial | What To Do During Inflation
ruclips.net/video/adzmox__2zM/видео.html
You should update the video now that the July CPI-U numbers are in... and below even your lowest projection.
Check out the latest community post - it’s already there
Good morning Jennifer,
Can we use Traditional IRA account to buy I- bond ?
Thank you
No unfortunately. You can only buy via TreasuryDirect.
Hi. Is this a monthly interest? How soon can we see the interest reflect in the account?
It’s 9.62/2 for the first six-month holding period. There’s a post from last week under our Community tab which walks through how interest is accrued in your online account.
Sorry everyone, newbie here. Q: If I maxed out ibonds on 4/20/2022, does it mean I need to wait till 4/19/2023 to buy more? Or I can invest more starting Jan 2023?
Jan 2023
How do I let Treasury Direct know that I intend to defer my taxes until I cash out I bonds? Will I still get the 1099-INT yearly, or will I get it when I cash out? Thanks.
You don’t need to let them know - that’s the default. You get the 1099 when you redeem.
I recently did a living trust and I have purchased an I BOND for 10,000 for individual. I would like to make an additional purchase for 10,000 for the trust, however my trust attorney says you get the TID when you pass away so is it ok to use my social security number for purchasing under the trust or do I go to my CPA or back to the attorney for an TID?
Thank you, you explain everything so well
As we read it, you can use your SSN when setting up a a trust account if there is no TID. The trickiest part is entering the entity name based on the what‘s stated on your trust documents. Next week‘s video actually goes through this.
I bought $5K in ibonds May 2022. How do I find my current balance? Will it be beyond my first six months of ownership it will actually reflect interest earned? I thought to wait until Nov 2022 to purchase another $5K, btw. Thank you for your youtube information. I will be watching more.
Check out this video: ruclips.net/video/9hfHoSijJEk/видео.html It explains how I-Bond interest works, how much you earn vs when you'll see it in your account, etc. The very top comment that's pinned on that video shows you how/ where to find the current balance
I'm so glad I found your videos! I am interested in buying I-Bonds. Would it still be worth it, if I buy less than $10,000 in I-Bonds? I'm aware my return will be much smaller, but is this only suitable for larger investments?
You can buy an I-Bond for as little as $25 & just add to it over the course of the year as you have more cash (that you don't need to touch for the next 12 months during the minimum I-Bond holding period).
@@DiamondNestEgg great, thank you so much.
when you live in California you don't have extra money. but still a good watch
When I got a transferred a gift I bond from my husband. How long I have to wait to sale this I bond, Thanks very much.
You can sell the I-Bond anytime after 1 year of the Purchase Date of the gift (the Delivery Date isn't counted).
Do you have any info on best IRA gurentee annuity rates
Rates depend on a lot of factors (e.g., how much you're investing, your time frame/ need for liquidity, etc). If you're interested in getting a customized quote, shoot us an email.
Hi Jennifer I am reviewing the amount in my account and the interest payout seems much smaller than the 3.56% I anticipated for Nov-April. I know they hold back 3 months of the interest but even then still seems a paltry sum. What should the payout for $20K look like after 6 months? Thanks so much!
I believe $356 for 20K I-bonds held 6 months. (.0356 x 20,000 = $712; then subtract 3-months of interest from that $712 reducing it in half to $356)
If you think the number is off, I'd suggest calling TreasuryDirect - try doing it first thing when they open at 8am ET - the wait times are the shortest then.
@@danp8484 Nope only shows $232. I will call them up for clarification.
Did you reach them by phone to get an explanation? If yes, what did they say. And if not + if you don't mind - can you tell me for your $20K: Date of issue & what your balance reads now (e.g. how much interest has been earned) as of X date in your account (e.g., April 1 2022 or May 1 2022)? Feel free to email info to jennifer@diamondnestegg.com if you prefer
I've gotten a lot of questions about this & am trying to piece together what everyone is seeing in their accounts vs. what TD has told me over the phone to see if it all "works out"
It sounds great, but if you looked at the inflation rates set for the past 10 years it was very low. Only the past 2 inflation interest rates were high. The current fixed portion of the interest rate is 0%
They are called inflation-indexed bonds for a reason: when inflation is low (as it was for a long time), the rate is low. When inflation is high, the rates are high.
If I'm ready to buy $10k right now, does it makes sense to go all in now or some now and some after October?
Just buy them. Great investment.
not so silly question, you mentioned iBonds arent taxable if used for educational expenses, would that include paying on existing student loans? Thanks and keep the videos coming!
As we read it, it doesn't. In case you need more info, here it is: www.treasurydirect.gov/indiv/planning/plan_education.htm
@@DiamondNestEgg Thanks!
So is it better to buy in May rather than wait until September or October, because one can gain more interest for 6 months rather than only 1 month?
Buy as early as you can. You will always get the interest for the next 6 months with the interest rate used on the FIRST day of the month,. Don't let your money sit in micro-interest savings account. Tip: If you buy towards the end of the month, you'll get interest for the WHOLE month (unlike most bank accounts).
Yes, buy all in May, you get all 6 months at 9.62% and the next 6 month at whatever they announce in October. People that bought in April got 7.12% until Nov and then the 9.62% kicks in for the next 6 months. I own a couple older ones that actually paid a base interest rate. One of them will pay over 10% when it resets. Unfortunately it’s only a little amount.
If we gift the I-Bond to our spouse....Do we have to worry about not having it held as primary and secondary bond holder? When I bought the $10k each for myself and wife I was able to set up primary and secondary holder for each of the bonds.
Not really. In most states, the spouse is the automatic beneficiary after a death, concerning the Gift. After you deliver or receive the gift, you can change how the I-Bond is registered and add/remove Secondary and Beneficiary names.
My husband and I put one another as PODs/ beneficiaries on the gift - in case you want to do this.
Quick question. Say you purchased an i-bond today, does your interest rate calculation start on the issue date of the bond which is May 1st or May 23?
May 1st
@@DiamondNestEgg thank you! And if you purchase in the month of April same thing? April 1st is the start?
Correct
A legal IRS tax way to purchase more than $10K of I-Bonds. Will this work? On March 2023, I'll complete my Fed IRS tax form and find that I get a refund of $1,000. I'll log-into the Fed IRS website, and pre-pay another $4,000 for my 2022 Fed taxes. My total tax refund then becomes $5,000, which I can then use to purchase $15,000 of I-Bonds at that time ($10K electronically, $5K paper bonds). Thoughts?
You can set up the IRS account and prepay any amount of 2022 taxes, so when 2023 comes, you can get the tax return done as soon as January and buy $10K of I-bonds in 2023.
It's not something we've done yet, but yes, based on my understanding - plus comments from other I-Bond folks in this community - some tax advisors actually suggest/ do this for their clients!
@@DiamondNestEgg After checking the IRS rules, there is no penalty for "deliberately over-paying" your taxes. But the government "frowns" upon any practice that deviates from paying what you owe in order to create a benefit outside of taxation. In the future, if enough people abuse this, the IRS could come up with a penalty. For now, this is legal on paper.
“Use it, don’t abuse it” is a good motto for life in general (in my mind). I-Bonds have been flying under the radar for so long, now that they’re not anymore, I wouldn’t be surprised if the “rules” did change in the future. Let’s see - we can only work with what’s in front of us at the moment.
1) Can you purchase them on a fixed rate of (9.62%)
2) Is this similar to buying stocks like Vanguard on Compounded acct
3) What is the recommend length I should keep the I Bonds - (5 yrs, 10yrs, or more)
4) If when I sell them
a) Do I sell them back to US Treasury?
b) What is my sale total? ( Is it the price I bought them for like $10k yearly + the Interest collected)?
1. The rate is 9.62% annualized if you buy between now and end of October - it will then change as described in the video every Nov & May based on where inflation is
2. I can’t answer this because I’m not familiar with what a compounded acct at Vanguard is - perhaps someone else in the community can help with this
3. How long you decide to hold the I-Bonds for will depend on your personal situation & inflation outlook but you must hold for a minimum of 12 months & if you redeem within the first 5 years, you will lose the last three months’ interest as an early withdrawal penalty.
4. You sell them back to the US Treasury & you get back your principal plus interest earned minus any early withdrawal penalty if applicable.
@@DiamondNestEgg Thank you for the quick response
If we redeem the I bonds after full 5 years, will we get the interest earned on principle money? Or do we need to wait till it matures after 30 years to get all the interest?
Yes, if you redeem after holding it for five years, you get back principal & all interest earned.
what is the net-profit after taxes?
That depends on your federal tax rate - just adjust accordingly based on the numbers we’ve provided in the video
Hi, my treasury direct account is locked and I tried calling them, no luck… is there anyway I can get this resolved?
Try emailing them or calling tomorrow first thing when they open at 8am ET. Wait time is usually under 30 minutes then and then keeps ticking up during the day until it gets to 2-3 hrs wait time
Are ibonds tangible to person who purchases them ?
I’m not sure I understand the question - what do you mean?
Hi! I'm still confused about how the interest calculates from the second 6 months. Let's say my first 6 month earns 7% APR till Aug'22...then how about the second 6 months? Do I earn 9.6% APR toward Oct'22 or Feb'23? Hope you could shed some light to ibond newbie! Thanks in advance!
Using your example, if you bought back in Mar 2022, you would earn 7.12/2 for the total 6-month period between Mar 2022 & Aug 2022 and 9.62/2 for the next total 6-month period between Sep 2022 & Feb 2023
@@DiamondNestEgg Got it! Thanks so much for your explanation ! 👍🏻
how much I can buy
or how many bonds can I buy?
10K per SSN per Account Type per calendar year - the last part of the video goes through ways you might be able to buy more depending on your situation
I have a question something that confuses me a little bit which is comparing rates between different securities. I bought an i-bond at the end of October, so I got it at an interest rate of 9.62%. So when comparing to a, let's say a 26-week T-bill (using the most recent inv rate of 4.61%), would it be accurate to say that I'm earning an interest of 5.01% (9.62%-4.61%) more than the T-bill in the first 6 months? (Assuming bought at the same time and neglecting the 3-month i-bond penalty). Or would I have to use the 4.81% (9.62%/2) to compare?
I would use the 4.81% based on your assumptions.
I checked my I bonds today. They just reached their first 6-month period. I calculate the interest that was added to the bond it is 1.76%. This is half of what I expected. Why doesn't the interest earned match the 3.52% for 6 months?
TD has explained that Month 1 interest shows up in Month 5 only to adjust for the early withdrawal penalty in the first five years. I have a video coming out in the next few days explaining interest earned vs what „shows up“ in your account.
Jen, could you please talk about what the best way to purchase I bonds for your grandkids? Also adress getting paper I bonds with your tax returns but in your grandkids name. Thanks
For the former, you can follow the same tutorial as here (the process is the same regardless of buying for a spouse or grandchild). The difference is that your grandchildren’s parents need to set up a minor account for your grandchildren when you want to deliver it to them. I have a video for the parents on how to do that as well. Regarding I-Bonds via tax refund - stay tuned.
How To Buy More I Bonds in 2022 | I BONDS FOR COUPLES (Buy MORE Than The Annual I Bond Limit)
ruclips.net/video/bSoZJJypSAQ/видео.html
Im watching your videos and thinking…is it better to buy it now (5/3) or end of october? Wish i watched your videos earlier
That'll depend on your financial circumstances, what you're earning elsewhere + your inflation outlook
@@DiamondNestEgg What do I miss out on if I buy I bonds in May vs by April 30th?
@@Funexpected It doesn't really matter at this point as you will get the May rate, but here's the explanation in this video section here: ruclips.net/video/zwNtVNj-4P4/видео.html
Worried about Nov 2022 - April 2023 interest rate…since FED has started taking action and Powell’s speech, the inflation is expected to be under control I guess
I walk through lower inflation scenarios in the second-half of the video.
Can you buy 10k in Oct 2022 and then 10k in Jan 2023 or is 12 calendar months?
Based on current rules, you can buy $10K this Oct and $10K in Jan
Hi Jennifer, got u a question about banks and its FDIC insurance limit. If I have more than 250k in one of my bank account. Is it wise to open another account from a new bank so it can also be under FDIC coverage? Or does it really matter? What does rich people do ?
Each bank account type is insured for $250K for each person named on the account, including beneficiaries. So if I'm married with 2 kids, and I have a joint account with my kids named as POD Beneficiaries, my account is insured to $1,000,000. Also, Sole ownership of an account gives you $250k insurance, and another account at the same bank with Joint Ownership will give you another $500K insurance for that joint account (you and your spouse get 250K insurance each).
I think Dan P knows more about this than I do - I actually didn't know about the beneficiary part...
Quick question. If all other avenues of retirement savings are maxed out, would dropping the $10k in i-bonds every year make a nice guaranteed future big purchase/emergency fund? Or does it make more sense to just throw that $10k into a brokerage account and let it ride?
That depends on a lot of things (e.g. your time horizon, age, risk tolerance, etc)
If you purchased an iBond for a ont time set amount but changed your mind and want to do an amount for the next 4 months what steps do u do to get there?
If I understood your question correctly, here’s the answer. Say that you bought $6K of I-Bonds earlier this year. If you want to buy more now to max out your $10K annual limit, you could buy $4K all at once or you could schedule a purchase of $1K each month for the next four months. Here's the vid on how to do this on TD: ruclips.net/video/adzmox__2zM/видео.html
Thanks for videos, very informative. QQ is there any other investment options better than CD. we are going to keep 40 K (20 K gift :)) from my family.
Is it a good idea to buy i bond now and take it out in 5 years
I’d suggest watching this video. It goes goes through the buy now vs buy later decision & the pros & cons of each: Buy I Bonds NOW Or Buy I Bonds In OCTOBER? Buy I Bonds In NOVEMBER? (Series I Savings Bonds)
ruclips.net/video/raZIRFVA_5k/видео.html
If I bought 10k worth at 4000 last month and 6000 this month. Do I have to withdraw the full amount if I want to cash out in a year
After the minimum 12 month holding period, you can redeem the full amount you bought or partial amounts (minimum is $25)
Jennifer, Thank you for all of your videos. One question and I hope you can help. I purchased $10,000 of I bonds in November when the interest rate was 7.12%. Now, 8 months later, my account only shows that I have accumulated $236 of interest. I would expect $356 for the first 6 months alone. Any idea why? I've email Treasury Direct but no response.
Glad you found the interest video!
What TD will show you:
I-BOND: 11-01-2021 Accumulated interest shown (less the 3-month penalty)
ANY DAY IN A GIVEN
MONTH YOU
VIEW ACCUMULATED
INTEREST IN YOUR
ACCOUNT:
12-2021 $0
01-2022 $0
02-2022 $0
03-2022 interest from November ($60)
04-2022 Nov+Dec ($60+$56)
05-2022 Nov+Dec+Jan ($60+$56+$60) (NEW 6 month inflation rate adjustment)
06-2022 Nov+Dec+Jan+Feb ($60+$56+$60+$60) i.e. $236
I have the same problem. Do we know why?
@@ssl888 I explain how the interest works, how it shows up in your TD account, etc in this I-Bond interest video: ruclips.net/video/9hfHoSijJEk/видео.html
Approximately what percentage is taxed when I cash out my I bond?
That will depend on what your federal tax rate is - you can check your last federal tax return to get an estimate
What about EE bonds?
The annual interest rate for EE bonds issued from May through Oct 2022 is 0.10%, but after 20 years (assuming you hold it for that long), the government will adjust the bond's value, such that it's worth twice what you paid for it. So the decision will depend on your inflation outlook and personal circumstances.
If I purchased $10k of I Bond on April, 2022. When will I start earning the new, 9.62% rate?
october 2022
You'll earn 7.12% till then, then the 9.62% for the next 6 months after that.
If I buy on May 4th, what will be my rate? I'm not clear on what I missed out on not buying before April 30th.
9.62 on an annualized basis for the first 6 months
Stupid question, how do I go about creating a trust so that I can buy and extra I bond under s trust?
Not stupid - I’m working on this as we speak for you guys. Should be out in time to grab the May rate.
I have a 5.00 bond its 62 yrs old.
Like your Website & DiY help. On MacLaptop login, why only this site forces OTP OnlineTyping Pswd Keyboard for entering Pswd only. How to get rid of that ? LogIn from iPhone possible ? Thanks.
If you are referring to the One-Time Password, you can get pass this by checking the box that says “Click here to register your computer” and you won’t need the OTP the next time you sign in.
If, on the other hand, you’re referring to the virtual keyboard - that’s a TD system thing.
You can login from an iPhone, but you’ll still need to go through OTP on first log in & the virtual keyboard.
@@DiamondNestEgg.Yes i meant virtual keyboard .I did registered my laptop on TD but every time during login, Full long pswd, I've to manually type in on popup virtual Keyboard . It will fill in/accept a/c number thru iPass clickIn ...but NOT accept Pswd! Thanks for Reply.
I put in a request for the purchase of an iBond one month ago, and received a (false) reply a day later confirming the purchase. But looking into my TreasuryDirect account, there was no purchase; looking into my bank account showed no withdrawal. After inquiring by e-mail, I was lectured: “...we will respond only to questions satisfying the following two criteria” both of which were met previously. After waiting for another two weeks, I called and was given the message that “it could take up to 8 weeks to process” - not one day as told by theoretical experts here on RUclips. How long is the wait for a human to answer my phone call? “We are experiencing a traffic heavier than usual... your call will be answered in about 2 hours”.
Don’t know if others are met with the same experience.
Under normal circumstances, it is processed next business day. I just placed an order yesterday in fact & it was completed today. Having said that, some folks have experienced similar issues to yours. I don’t know the specifics, so you would have to call them directly & the wait time on the phone is about 1 - 3 hours depending on when you call. There’s no way around it if you want to speak to a TD rep about specific questions.