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porcupine73 (@guest_1839384)
May 3, 2024 07:18

I’m keeping some I-Bonds as part of an overall portfolio. The alternative for something inflation protected are TIPS. The main advantage I see of I-Bonds is they essentially have a built in put option in that the value can’t drop below face value, unlike TIPS. The downside is the limit on how much you can buy yearly.

Max (@guest_1840145)
May 4, 2024 18:58

Plus, you can choose when to sell, which allows you to harvest taxable gains on your own timeline.

NM (@guest_1839122)
May 2, 2024 16:17

November 2022 through April 2023 – 6.48% (6.89%)Hello, I bought my first I-bound on 4/18/23 with rate 6.89%. When can i sell it for just losing 3 months interest? Thank!

JD (@guest_1840077)
May 4, 2024 15:06


NM (@guest_1840217)
May 4, 2024 22:52

Thanks JD.

What will be 3 month interest rate if I sell today?

Fernando (@guest_1840366)
May 5, 2024 14:32

Sell it any time before 5 years of initially buying the I bond and there will be a 3-month penalty. You just passed your one-year mark of holding the I-bond so you should be able to sell it.

NM (@guest_1843513)
May 11, 2024 21:24


Chris (@guest_1839086)
May 2, 2024 15:34

*to the tune of Should I Stay or Should I Go, by The Clash*

♫ Should We Buy or Should we Sell ♪

miafll (@guest_1839040)
May 2, 2024 14:23

I have been buying JPM callable 1 yr CDs since they hit 5.6 / 5.7 (down to 5.4 now) from Fidelity. The goal is to lock in 6 months high yield, as the first callable schedule date is on 7th month and can only exercise once each subsequent month (par call).
So far JPM exercised once on a 5.6 on the 7th month back in first half of Apr when the June rate cut was on the card.
Ever since no exercise on the remaining CDs – one 5.7 starts its 8th month now. The iBond even when avg the 5.27 and current 4.98 is NOT attractive when you have to pay 3 months penalty.

Currently Fidelity’s Sweep funds in brokerage account has 4.99 7 days yield, and the US Government fund that one can buy (and it is the default sweep in IRA account) is at 5.15. They are liquid, no loss of interest. I dont see why people still need to hunt around.
17wk T Bill yesterday auction reach 5.412%. That is a 2024 high. The sweet spots in T Bill are the 13 wk and 17 wk. Buy them thru brokerage account, you can sell in the secondary market should you need the fund, else let them run to maturity. Far less hassle.

atexit8 (@guest_1839120)
May 2, 2024 16:16

On Fidelity’s website, the 26-week T-Bill maturing 11/06/2024 is expected to have a yield of 5.375%.

The 12 month JPM one-year CD is at 5.4%.

Which is the better investment?

KE (@guest_1839180)
May 2, 2024 17:30

Your objectives and those of others may not be the same. There are many reasons I-Bonds can be advantageous, and this article doesn’t get into much of that.

For example, no state income tax. Deferring taxes (e.g. cashing them out in later years when you expect your income to be much lower for whatever reason, or to avoid losing tax credits…avoiding the $11k interest cap before you lose a lot of tax benefits, etc.). T-Bills can provide some of that, but only up to a year, and the auction dates are sporadic.

You also can get a free month’s worth of interest if you buy an I-Bond near the end of the month.

There are a myriad of reasons besides just the raw interest rate that factor into an investment decision.

Scott (@guest_1839197)
May 2, 2024 18:11

What tax benefits do you lose at 11k interest?

KE (@guest_1840152)
May 4, 2024 19:20

It will be $11.6k this coming year, but was $11k in 2023. As someone mentioned, this is the cap for the EITC. There are also other caps, like the Saver’s Credit, that phase out at relatively low income thresholds. Deferred claiming of this income, if you don’t need the cash now, allows you to maximize these credits and potentially save several $k a year.

Rick (@guest_1839234)
May 2, 2024 20:10

So very well said. Being able to defer taxes until retirement is a major reason I plan on growing and holding my I-bonds long term. No state income tax is just cherry on top.

Scott (@guest_1839325)
May 3, 2024 00:11

What is the 11k interest cap?

Alex (@guest_1839350)
May 3, 2024 03:59

Yeah, deferred taxes is an important property. Are there other similar low risk investments that have this property?

Mike (@guest_1839517)
May 3, 2024 13:08

Yes, there are multi-year guaranteed annuities (MYGA). They are very similar to a CD, except taxes on the earned interest can be deferred for several years – until the annuity matures. In order to keep the annuity safe, keep your purchase amount below the maximum limit of coverage offered by your state’s Insurance Guaranty Association.
Many MYGA’s come without fees, like CD’s. MYGA’s are available with terms from 2 years to 10 years. MYGA’s interest rates can be 1%-2% higher than CD’s of the same duration.

Alex (@guest_1839866)
May 4, 2024 01:52

Thanks Mike. Very useful. I didn’t know about it. I now found a whole DoC thread about MYGAs.

Mike (@guest_1840051)
May 4, 2024 13:41

I ladder them, like a CD ladder. Some in my name, some in spouse’s name, and at different insurance companies. By doing it this way, all are insured by my state’s Insurance Guaranty Association. Note – every state has this, but coverage limits, etc. can vary by state.

Scott (@guest_1839381)
May 3, 2024 07:09

What is the 11k interest cap?

JD (@guest_1839852)
May 4, 2024 01:17

Not sure what KE is talking about, but there is an 11k cap on investment income (interest, dividend, and capital gains) for the EITC.

Kate (@guest_1839311)
May 2, 2024 23:05

Question: If you sell the T Bill in the secondary market before maturity, is the transaction reported under the 1099-B at year-end? If so, is the gain (difference between cost and sale proceeds) reported as capital gain or interest in your tax return? I understand if you hold the T bill to the maturity, the difference between the redemption value and the cost is reported as interest under 1099-Int. Thanks.

JD (@guest_1840076)
May 4, 2024 15:05

Yes, you should get a 1099-B and report the capital gain/loss on Schedule D.

Sam F.
Sam F. (@guest_1839003)
May 2, 2024 13:36

My December 2023 and January 2024 iBonds are showing 5.27% today. So, July 1st and August 1st, my rates will go down to 4.28%. Correct?

Celia 🔗
Celia 🔗 (@guest_1839037)
May 2, 2024 14:14

6 months is June and July for December 1 and January 1 issue dates I think.

R T (@guest_1838999)
May 2, 2024 13:34

*2.98 🙂

(CPI rate was 2.98%)

BankBonusIsMyReligion (@guest_1838996)
May 2, 2024 13:27

doing CSHI (ETF) right now. Close to 6.24% yield

Shirley (@guest_1839024)
May 2, 2024 14:00

BankBonusIsMyReligion With an expense ratio of .38%, does that put the actual yield at 5.85%?

BankBonusIsMyReligion (@guest_1839073)
May 2, 2024 15:23

yeah, i believe it should hover around 5.70 to 5.90’ish after it’s all said and done.

there’s also fluctuations and dependence on how high interest rates stay for.

Eric 🔗
Eric 🔗 (@guest_1839358)
May 3, 2024 05:43

I was told by several people that the expense ratio is already baked into the figures provided for money market funds (ie PVOXX). Is it different for ETFs?

BankBonusIsMyReligion (@guest_1839907)
May 4, 2024 04:54

I believe it’s a daily deduction and goes off of your total balance.

Even if the expense ratio is baked in (yield minus ER), it’s taken out from the NAV of the fund on a daily/weekly basis.

JD (@guest_1840262)
May 5, 2024 03:49

Careful with this one…I wondered how they could offer such a premium over other treasury funds when they hold 98% treasuries. Looking at the one year chart, the monthly price pattern has dropped by about .7% while something like SGOV is up .1%…

You might end up taking a capital loss when you eventually exit, wiping out much of the extra earnings over SGOV. And if you held it for more than a year you can only harvest that loss to offset gains taxed at the lower long term capital gains rate.

BankBonusIsMyReligion (@guest_1840264)
May 5, 2024 04:39


yeah, there’s i believe 98% treasuries and 2% is for the selling/purchasing S&P put options to generate the additional income.

Generally, the best time to get in would be post payout date so your general entry point is mostly protected.

JD (@guest_1840085)
May 4, 2024 15:23

Looks nice. Is CSHI (Neos Enhanced Income 1-3 Month T-Bill ETF) the same as the “NEOS Enhanced Inc Cash Alt ETF” that is 98% state tax exempt listed in this document? I assume so since they only have 3 funds…

Nola pola
Nola pola (@guest_1838983)
May 2, 2024 13:17

3.98+1.3 = 5.28

Joe (@guest_1837844)
April 30, 2024 10:32

Treasury Department announces new Series I bond rate of 4.28% for the next six months

Panos (@guest_1837328)
April 29, 2024 10:08

If I buy today 4/29 will it count with the 5.27 interest rate? Or because it takes 2 business days to process my purchase will fall under May rates?

JD (@guest_1837851)
April 30, 2024 10:59

Yes, it would have gotten 5.27%, as most TD transactions process next business day. That rate expires at 11:59ET tonight, but it’s too late to buy in now.

The new rate for purchases through Oct 2024 is 4.28% (includes fixed rate of 1.30 %). Tipswatch guy called it again!