PSA: Federal i-Bonds are returning 3.54% right now

[chpmnk1015]

So looking at doing this with some money the kids have.. ive read all the different things- how do i set up one for the kids? they cant have their own account under 18 and i need to do a linked one but the instructions i am finding are like circular and keep taking me to the same step. Lol what am i missing?

[Pilsy]

dr.girlfriend, that's wild! Worse than a passport.

[dr.girlfriend]

Sept 4, 2022 15:50:33 GMT -5 dr.girlfriend said:

Aug 18, 2022 8:31:34 GMT -5 Pilsy said:

I'm annoyed on your behalf. What a PITA!

I got an email that they just received the paperwork, and it could take 13 weeks to process!  :-P  I hope that's an overestimate.

Update:  My account was approved today and I got the purchase order in, so I got it in before October as I hoped and the three weeks to approve was much better than the 13 estimated!

On a related note, you can buy the $10k limit any time in the calendar year, correct?  So we could each do $10k more on January 1st?

[ohgillian]

Sept 27, 2022 13:27:40 GMT -5 dr.girlfriend said:

Sept 4, 2022 15:50:33 GMT -5 dr.girlfriend said:

I got an email that they just received the paperwork, and it could take 13 weeks to process!  :-P  I hope that's an overestimate.

Update:  My account was approved today and I got the purchase order in, so I got it in before October as I hoped and the three weeks to approve was much better than the 13 estimated!

On a related note, you can buy the $10k limit any time in the calendar year, correct?  So we could each do $10k more on January 1st?

Yes, this is right. It's on a calendar year basis. So I have bought them twice now ($10k each time) and my purchases were not 12 months apart, but they were in different calendar years.

[Susie]

omg, the treasury direct website is the actual worst.  I created an account, which went fine, and I put my usual credit union info in when I set up the account.  But the money that I was going to use to fund the purchase is actually sitting in an online savings account, so I thought why don't I just cut out the middle man and add the online savings account to payment methods too.

oooooh no.  In order to add a payment method, you have to mail in FS Form 5512, that is not only signed, but is signed before a certifying officer of a bank/credit union.  Not even a notary public will do.  AYFKM?  Just to add a 2nd bank account as a payment source?  No thank you, I will just transfer money between my accounts and do this the long way, thanks.

What a hassle.  I guess I can never stop banking with my current credit union, lol.  We are locked for life to Treasury Direct.

[tvlmm]

Has anyone received this message after creating the account and if so, how long after you mailed the form were you able to actually buy the iBond?
"Unfortunately, we are having difficulty verifying the information you provided when opening your account. As a result, a hold has been placed on your account for your protection.
You must mail a completed Account Authorization form before you will be able to access your account."

[karinothing]

SO I popped on this board for the first time in forever and noted the rates are over 9% until Oct 31. So that means if I buy now I lock in that interest rate for 6 months even if it can change Nov 1?

Is it worth buying now or is it expected to go up Nov 1?

[Susie]

Oct 5, 2022 13:01:24 GMT -5 karinothing said:

SO I popped on this board for the first time in forever and noted the rates are over 9% until Oct 31. So that means if I buy now I lock in that interest rate for 6 months even if it can change Nov 1?

Is it worth buying now or is it expected to go up Nov 1?

This may help:

When to Purchase an I Bond

The U.S. Treasury changes the inflation rate component of I bonds every May and November. Since that rate is based on CPI-U inflation rate for the previous six months, investors can estimate what the new inflation rate component will be several weeks before it is officially announced.

Investors who purchase a new I bond in May and November will get the new composite rate that reflects the updated inflation assumption that takes effect May 1 or November 1, respectively.

Investors who purchase a new I bond in April or October will get the “old” composite rate for the first six months of ownership, and then in the second six months of ownership, the holder will get the composite rate that was announced a month after the I bond was purchased.

For example, the combined interest rate earned for the first six months of Series I Savings bond ownership for those bonds purchased between November 2021 and April 2022 is 7.12%. The new composite rate for I bonds purchased between May and November 2022 is 9.62%, based on the March 2022 Consumer Price Index release.

An investor who purchased the I bond in April 2022 will earn the 7.12% composite interest rate for the first six months and in the subsequent six months, the holder will earn the 9.62% composite rate announced in May 2022.

Even when a new upcoming composite rate is not yet announced, investors are better off not waiting to purchase I bonds as all holders will earn the composite rates of interest that is in effect at the time the I bond is purchased and all subsequent composite interest rates announced after the I bond is purchased.

moneyfortherestofus.com/tips-and-ibonds/

[karinothing]

Oct 5, 2022 13:31:02 GMT -5 Susie said:

Oct 5, 2022 13:01:24 GMT -5 karinothing said:

SO I popped on this board for the first time in forever and noted the rates are over 9% until Oct 31. So that means if I buy now I lock in that interest rate for 6 months even if it can change Nov 1?

Is it worth buying now or is it expected to go up Nov 1?

This may help:

When to Purchase an I Bond

The U.S. Treasury changes the inflation rate component of I bonds every May and November. Since that rate is based on CPI-U inflation rate for the previous six months, investors can estimate what the new inflation rate component will be several weeks before it is officially announced.

Investors who purchase a new I bond in May and November will get the new composite rate that reflects the updated inflation assumption that takes effect May 1 or November 1, respectively.

Investors who purchase a new I bond in April or October will get the “old” composite rate for the first six months of ownership, and then in the second six months of ownership, the holder will get the composite rate that was announced a month after the I bond was purchased.

For example, the combined interest rate earned for the first six months of Series I Savings bond ownership for those bonds purchased between November 2021 and April 2022 is 7.12%. The new composite rate for I bonds purchased between May and November 2022 is 9.62%, based on the March 2022 Consumer Price Index release.

An investor who purchased the I bond in April 2022 will earn the 7.12% composite interest rate for the first six months and in the subsequent six months, the holder will earn the 9.62% composite rate announced in May 2022.

Even when a new upcoming composite rate is not yet announced, investors are better off not waiting to purchase I bonds as all holders will earn the composite rates of interest that is in effect at the time the I bond is purchased and all subsequent composite interest rates announced after the I bond is purchased.

moneyfortherestofus.com/tips-and-ibonds/

Thanks! That did help. 

[dr.girlfriend]

Oct 4, 2022 5:57:57 GMT -5 tvlmm said:

Has anyone received this message after creating the account and if so, how long after you mailed the form were you able to actually buy the iBond?
"Unfortunately, we are having difficulty verifying the information you provided when opening your account. As a result, a hold has been placed on your account for your protection.
You must mail a completed Account Authorization form before you will be able to access your account."

Yep, see my posts above.  :-)

[sadlebred]

I Bonds are at 6.89% for the next 6 months.

www.cnbc.com/2022/11/01/treasury-series-i-bond-rate-is-6point89percent-through-april-2023.html