Purchase Series I Savings Bonds.

GON

GON

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After reading/learning about Treasury Direct on BITOG (of all places), I opened an account.

The I Bond rate today is paying 6.89 percent, and as nice as that, appears very easy to purchase the Bond (hassle free).

The question is I Bond limits. It appears that one can only buy 10k in I Bonds per year? Am I reading that right? At 10K, yes the rate is great but not worth moving money around, my credit union is paying 5 percent on all balances.

Am I missing something on the restriction/ limit to only buy 10k of I bonds per year?
 
No, that is the limit. So you can buy 10k now, 10k on Jan 2. Both will earn 6.89% for a full 6 months. It is individual so a spouse could buy 10k per year also. You can also route additional money from tax refunds and businesses can purchase them as well.
 
Don't look a gift horse in the mouth. There's no reason, besides benevolence, for the government to offer these at all.

Oilswine covers the rules pretty well.
 
atikovi said:
What credit union? Is this on a liquid account or CD? No balance limit, good up to NCUA insurance limit?
Click to expand...
Navy Federal Credit Union. Actually 4.84 percent with a 100k certificate, a little less for less funds, 18 month maturity:
www.navyfederal.org

18 Month Certificate Relationship Pricing

Open a certificate with Navy Federal and get additional benefits.
www.navyfederal.org www.navyfederal.org
 
2005jettatdi said:
Keep in mind, with I-bonds you do not pay income tax on the interest until you redeem the bond. I buy the full $10K every year. It is my rainy day fund.
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Its pretty likely taxes are not going to be lower than they are now with all the spending!
My feeling we will be looking back at those 16 and 18% interest rate before to long!
 
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GON said:
After reading/learning about Treasury Direct on BITOG (of all places), I opened an account.

The I Bond rate today is paying 6.89 percent, and as nice as that, appears very easy to purchase the Bond (hassle free).

The question is I Bond limits. It appears that one can only buy 10k in I Bonds per year? Am I reading that right? At 10K, yes the rate is great but not worth moving money around, my credit union is paying 5 percent on all balances.

Am I missing something on the restriction/ limit to only buy 10k of I bonds per year?
Click to expand...
Its locked in for 12 months (can't get it out) and if you pull it in less than 5 years you loose your last 3 months of interest.

Its overall a very good deal.

There not popular because for the last 10 years they paid between 0 and 0.2% so most people don't know about them.
 
GON said:
Navy Federal Credit Union. Actually 4.84 percent with a 100k certificate, a little less for less funds, 18 month maturity:
www.navyfederal.org

18 Month Certificate Relationship Pricing

Open a certificate with Navy Federal and get additional benefits.
www.navyfederal.org www.navyfederal.org
Click to expand...
Don't care for locking in for 18 months, especially when rates are rising. With a few savings accounts at 4%, it's not for me.
 
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atikovi said:
Don't care for locking in for 18 months, especially when rates are rising. With a few savings accounts at 4%, it's not for me.
Click to expand...
Of note, 30 year mortgage rates reportedly have fell for the past three consecutive weeks.
 
I started mine in 2009 by buying $100 per month with a goal of having $10,000 in I-bonds to cover health insurance deductibles. I am now way, way past that goal. Yeah, for a while there the interest rate was zero, like all other bank accounts. 9.62% the previous six months was pretty nice.
 
GON said:
Of note, 30 year mortgage rates reportedly have fell for the past three consecutive weeks.
Click to expand...
Yes, but the interest rates the banks pay will continue to climb as the Fed has indicated, even today with another increase maybe .5% this time and will continue to increase albeit maybe smaller increases.

I would still guess that will mean at least another point over the next six months.

Mortgage rates, are not directly, tied to what the Fed does.

Good info on the 10K limit and I could see how the other person who posted in here would find that to be a hassle as well.
 
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It's $10,000 for the spouse too, if you have one, and then another $10,000 if you have a trust. Like other somewhat conservative investments, the rewards may not be fast or high, but when Ibonds were paying over 9% when everything else was tanking it was nice.
 
The limit per person is $10,000 per year for electronic I series bonds, and an additional $5,000 per year for paper I series bonds, paid for with your tax refund.
 
Good article here on the I-bonds gift box strategy:

tipswatch.com

Want to stash I Bonds in a ‘gift box’? Do it by Wednesday.

With this strategy, you can bypass the $10,000 per person purchase limit, but there are potential drawbacks. By David Enna, Tipswatch.com Throughout this year, I have read with — at first, di…
tipswatch.com tipswatch.com

And more generally on I-bonds:

tipswatch.com

Q&A on I Bonds

Tipswatch.com, updated Nov. 2, 2022 The way I Bonds work An I Bond is a security that earns interest based on combining a fixed rate and an inflation rate. The fixed rate will never change. So if y…
tipswatch.com tipswatch.com
 
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