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asteroid
asteroid

I have set up on my personal account to purchase for Oct. But how do you handle beneficiary? I read that you can assign POD but how did you set it up after you have bought the 10k last week? TIA!

Penny

It is required that we buy 10K all at once? Or can we split it up?

Sadly, my account is linked to an old bank account (still open). I have to transfer money over from my main account to this old account but have a 3K ACH transfer limit a day. Figure I would buy them as the ACH hits my account should be ok.

Gotta change my bank account once this transaction is complete. TreasuryDirect makes it hard, as one have to do a form and snail mail it in. Who knows how long that will take to process

calwatch

Of course you can split it up. No need to buy $10,000 in one day. Note that interest is paid in arrears all the way back to the first day of the month, so it is best to schedule these deposits toward the end of the month.

Kevin
Kevin

Looking at the last 3-4 year rates, I don’t see any tangible chance that the rate goes beow 2% under any condition in the next few years. In addition to that inflation is also probably going to stay high for the next year. So the rate in May is likely to be above the current 3%.

SMan
SMan

Can a non Immigrant Visa holder with SSN invest in “I or EE” bonds ? Can an American citizen under 18 years old invest in these bonds ?

calwatch

Plenty of folks buy bonds for children all the time. Anyone who is a citizen (worldwide), resident of the United States (regardless of immigration status), or employee of the United States Government (regardless of location) can buy savings bonds. https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ibuy.htm

tuphat
tuphat

Some thoughts, may be repetitive of other comments —

1. If you plan to make a purchase in early 2022, you can go ahead and schedule that future purchase now. Just input the future date in the purchase date field.

2. You can break a purchase down into multiple lower denominated bonds. The minimum for electronically issued I bonds is $25, so you could theoretically purchase 400 individual $25 bonds and stay under the $10k annual limit.

sg77

With the electronic bonds, it’s easy to redeem just part of it, so I don’t see a reason to split it into multiple smaller bonds (unless you want to postpone some of the purchases to a later date).

tuphat
tuphat

You may want different registrations, e.g., different POD beneficiaries.

calwatch

For those wondering this chart from Bogleheads compares I Bond rates to the big high yield savings accounts as well as Treasury yields. I Bond rates have always met or beat the rates from reputable online banks, although you might do better with a bank with a teaser rate. Then again, who knew that CIT, Emigrant Direct, FNBO, etc. would be such teases, to name a few of the online banks that I opened accounts with. My Schedule B is a graveyard of banks that I once held accounts at which now might have a few pennies in them, if they’re even still open.

https://imgur.com/aAyVVJv
https://www.bogleheads.org/forum/viewtopic.php?p=6276906#p6276906

calwatch

Here is the revised chart – between 2005 and 2007 the HYSA was a higher rate, but since then they have been lower or the same. The original chart incorrectly calculated inflation. https://i.imgur.com/6MGrvbL.png

Peter
Peter

Thanks for the info! Just opened an account to gain some experience with I bonds. It’s neat to be in this community and learn about new financial vehicles.

Though I gotta say the Treasury Direct website is real clunky…

atc1
atc1

My plans are to purchase during October. Can you purchase on October 31st (Sunday) or purchase on the last business day, October 29th (Friday). In other words what is the effective date?
Thanks.

Johnz
Johnz

read https://www.depositaccounts.com/blog/inflation-treasury-series-i-savings-bonds/#p15488
or submit TrezDrct purchase order no later than Wed Oct 27

atc1
atc1

Thanks John

Johnz
Johnz

This article charts comparison of $ return scenarios for buying in Oct vs Nov. Read his last 2 paragraphs first.
https://tipswatch.com/2021/10/14/i-bond-dilemma-buy-in-october-or-wait-until-november/

GC Guru
GC Guru

If you haven’t logged in for a while, you may be asked to complete Form 5444 and mail it to the Bur. of Fiscal Servs. It requires a witness, signature, and stamp (NOT notarization) from your bank. I went into a TD branch in Wash, DC and they were glad to help me.