I Bonds, anyone?

[Tiny]

 

can cash out after 12 months with 3 months interest penalty.

You lose the most recent 3 months of interest.     That penalty is applied to I-bonds held between 1 and 5 years.  After 5 years there's no penalty. 

My plan for I-bonds was short term,  but I'm basically trying to hold them while I wait for a lower variable interest rate, and then hold the bond(s) 3 more months (at that lower rate) and then redeem them.  So that I lose a lesser amount of interest.       

[countrygirl2]

I have a lot of them from when they first started that have decent fixed rates, that's why mine have earned well. When they stopped adding the fixed component is when I quit buying them.

[Rukh O'Rorke]

Was surprised by the interest this past month, exceed last month's......will be declining for sure as more switch down to the 6.48%.....still pretty good!

Bough my first one in May 2021, and maxed out 2022 in May of this year. Over 1k in total interest.

[Tiny]

Yes, the interest has been remarkable! I have some I-Bonds ($50 or $100) that had (I think a 13%-ish rate for 6 months.) I've got a total of $2K of those little amount I-Bonds spread out over 2 years. The interest rate was kind of eye popping.

And yes, that 6.48% is still pretty good. I'm not seeing CDs or T-Bills hitting 5% yet. I'm kind of hoping the next I-bond variable rate will drop down to between 3 and 5% (meaning inflation is easing - but keeping the I-Bonds worth holding.)

I think I've now got the majority of my "cash" at 3% (Ally) or higher (Ally CD, T-Bill, I-bonds).

I'm kind of glad I made the effort to move my money around chasing higher interest rates... other wise I'd still have it all in CDs (under 1%) or a savings account(way under 1%) or being padding in a checking account (no percent something like less than a 10th of percent).

I'm having a "cash hemorrhage" right now as property taxes and insurances that I pay are all coming due. Thank heavens for having "sinking funds" set up and funded.
With the big dollar amounts earning 3% (at Ally) I'm trying to time the payments as close to the due dates as possible. Something I haven't done for years (because interest rates were so very low...)

[minnesotapaintlady]

Dec 1, 2022 16:55:30 GMT -5 Rukh O'Rorke said:

Was surprised by the interest this past month, exceed last month's......will be declining for sure as more switch down to the 6.48%.....still pretty good!

Bough my first one in May 2021, and maxed out 2022 in May of this year. Over 1k in total interest.

The interest decline you see will lag a few months past the change because the penalty is the most recent 3 months, so you're still getting 9.62% being tacked on the available and the penalty is the 6.48% starting this month.

[CCL]

Dec 2, 2022 20:17:33 GMT -5 Tiny said:

Yes, the interest has been remarkable! I have some I-Bonds ($50 or $100) that had (I think a 13%-ish rate for 6 months.) I've got a total of $2K of those little amount I-Bonds spread out over 2 years. The interest rate was kind of eye popping.

And yes, that 6.48% is still pretty good. I'm not seeing CDs or T-Bills hitting 5% yet. I'm kind of hoping the next I-bond variable rate will drop down to between 3 and 5% (meaning inflation is easing - but keeping the I-Bonds worth holding.)

I think I've now got the majority of my "cash" at 3% (Ally) or higher (Ally CD, T-Bill, I-bonds).

I'm kind of glad I made the effort to move my money around chasing higher interest rates... other wise I'd still have it all in CDs (under 1%) or a savings account(way under 1%) or being padding in a checking account (no percent something like less than a 10th of percent).

I'm having a "cash hemorrhage" right now as property taxes and insurances that I pay are all coming due. Thank heavens for having "sinking funds" set up and funded.
With the big dollar amounts earning 3% (at Ally) I'm trying to time the payments as close to the due dates as possible. Something I haven't done for years (because interest rates were so very low...)

I just put some $$$ in 3 month CDs at Fidelity. The rate is 4.01%, getting better.

[Rukh O'Rorke]

Dec 2, 2022 20:32:23 GMT -5 minnesotapaintlady said:

Dec 1, 2022 16:55:30 GMT -5 Rukh O'Rorke said:

Was surprised by the interest this past month, exceed last month's......will be declining for sure as more switch down to the 6.48%.....still pretty good!

Bough my first one in May 2021, and maxed out 2022 in May of this year. Over 1k in total interest.

The interest decline you see will lag a few months past the change because the penalty is the most recent 3 months, so you're still getting 9.62% being tacked on the available and the penalty is the 6.48% starting this month.

Nice! That will last for a few months then

Thanks for the info!!

[Artemis Windsong]

The CD rates are coming up at my credit union and discover bank.  I'll be rolling out of the CDs I have into the higher shorter term rate.  A real pisser, 1 year ago, .55 was a good rate.

Rant done, OT sorry.

[Artemis Windsong]

The switch at Discover Bank is going to cost me $45.94 more or less.  6 months simple interest. 

I also need to switch a rising rate CD at the CU.

Update.  The lateral transfer of the CD at Discover Bank took nearly 40 or more minutes on the phone.  First, they wouldn't allow my home address because documents had been returned.  I was read the disclosure documents on the new account and the penalty disclosure.  My home address was allowed.  Then they reviewed my account history with another person.  Then e-sign for authentication.  I do feel I lost more interest money than the simple 6 months.  I also was not allowed to split to 2 CDs.   Oh, rate is 4% for 1 year. 

I'm sure there will be another issue with the credit union trying to lateral transfer for a high interest rate.

At least we are getting much better rates.

[Tiny]

Dec 6, 2022 11:29:40 GMT -5 Artemis Windsong said:

The CD rates are coming up at my credit union and discover bank.  I'll be rolling out of the CDs I have into the higher shorter term rate.  A real pisser, 1 year ago, .55 was a good rate.

Rant done, OT sorry.

I suspect a lot of people are closing/breaking older CDs.     

I opened a 12 month Ally CD with 5K at 3.75%  in early November (it's money I won't need to pay a bill with until December 2023).     I just checked and the new rate is 4%.   ::sigh:: I figured the rate would jump up - but I was hoping not so quickly. 


I have to keep myself from "chasing rates"  I just keep reminding myself I've got any and all "cash" out of the old interest bearing accounts/CDs - so having FOMO about missing a higher rate - is just FOMO.    

[seriousthistime]

I just sat down and went through the Treasury Direct process of converting paper I bonds to electronic. Now I need to get the paper bonds out of the safe deposit box and mail them in. 

It looks like I have enough interest earned for 3 airline tickets now. I'll be buying more I bonds in early January and will also make an estimated tax deposit to the IRS, sufficient to pay whatever small amount of taxes I will owe and also get another $5K in paper bonds. 

[minnesotapaintlady]

I love my paper bonds.  No plans to convert to electronic.  They kind of give me the same thrill to collect as the old days when I'd get EE bonds mailed to me every couple weeks from payroll deduction. LOL

[seriousthistime]

I want it all in one place. I want to make it as simple as possible for my kids if I die before I cash them in.  I want to name beneficiaries on all of them.  Is there a way to do that with paper bonds?  They're in the safe deposit box now, but maybe there's a way to name a beneficiary on the back of each bond. 

[minnesotapaintlady]

The only way you can name a beneficiary or change the one you already have on paper bonds is to mail them in with the form and they mail them back, so at that point you might as well just mail them in to convert to electronic if you want them together. 

[susana1954]

Dec 7, 2022 12:22:09 GMT -5 minnesotapaintlady said:

I love my paper bonds.  No plans to convert to electronic.  They kind of give me the same thrill to collect as the old days when I'd get EE bonds mailed to me every couple weeks from payroll deduction. LOL

Wait until you cash them in.  I used to buy $25 EE bonds with the Instant Credit incentives I got working retail.  I cashed them in to pay for a semester of graduate school.

I had to sign the back of dozens!  Lol.

[minnesotapaintlady]

Dec 7, 2022 20:08:56 GMT -5 susana1954 said:

Dec 7, 2022 12:22:09 GMT -5 minnesotapaintlady said:

I love my paper bonds.  No plans to convert to electronic.  They kind of give me the same thrill to collect as the old days when I'd get EE bonds mailed to me every couple weeks from payroll deduction. LOL

Wait until you cash them in.  I used to buy $25 EE bonds with the Instant Credit incentives I got working retail.  I cashed them in to pay for a semester of graduate school.

I had to sign the back of dozens!  Lol.

I cashed those in decades ago to buy my first house.  I only have like 18 paper I bonds.  For some reason when you get them with your tax return they send a bunch of small denominations. Must have a lot of leftover 50's and 100's lying around.

[Artemis Windsong]

Aw the good old days.  I cashed in the EE bonds I gathered up as a kid.  That money went into CDs paying 15% interest.  Those high interest rates sure helped increase my savings.

ETA:  In school we used to buy a 10 center stamp every week.  At the end of the school year we had enough for a $25 bond.  Or $12.50 invested!

[countrygirl2]

I need to look through mine, some are in hubs or my name, some in mine and sons. On hubs 4001k's they go to me then son as the second beneficiary. The IRA's have me as beneficiary. We have a will splitting evenly between son and DD everything in hubs and my name only. I need to change that'; her money would just go to the state. We have been intending to change it. $50k should take care of her teeth, hair, clothes, and shoes the rest of her life, it is set to go into a trust after we both are gone. All the ones that take care of it for the state said they will find a way to suck it all out and leave them with nothing. The attorney said he will update it for us for a minimal fee so need to do that. 

We have 71 bonds, we cashed in the 4 EE's hubs had as they were drawing no more interest this year. They will be our last resort if we get down that far, so doubt we ever spend them. They mature in the late 20's and 30's.

[nidena]

Decided to join the crowd with the I-bond purchases.  I've scheduled a purchase every payday between now and the end of March and will reassess the amount come April.

[justme]

Didn't know they were doing maintenance on Thursday, so my purchase officially goes through for 2023. Oh well, I wasn't planning to put 10k in next year anyways.

[seriousthistime]

I just bought $10K worth for 2023. 

Happy New Year, all.

[Artemis Windsong]

Oh, I'll get on a buy one also. I thought I had to wait until Monday.

Edit.  I got bumped out that website not available.  Ugh.

[susana1954]

Jan 1, 2023 17:12:00 GMT -5 Artemis Windsong said:

Oh, I'll get on a buy one also. I thought I had to wait until Monday.

Edit.  I got bumped out that website not available.  Ugh.

Try again later . . . or tomorrow.

I bought one today, but it was more in my range--$50.

[Artemis Windsong]

I did get into Treasury Direct and got my purchase request in to be filled 1-3-23. It took me some time to figure out where to check for amount earned. I made a note of where to look.

I did notice that an additional bank can be added without jumping through the paper form hoops.

[Rukh O'Rorke]

Jan 1, 2023 9:10:42 GMT -5 seriousthistime said:

I just bought $10K worth for 2023. 

Happy New Year, all.

I guess you are serious this time!!!

[Rukh O'Rorke]

165.80 in interest for 12/22

increased a little bit from last month, but by less than the dec increased over nov as more of the ibonds ramp down from the 9% levels.....hate to see if it will eventually go lower rather than higher.....guess I have to start adding to it to prevent that.....

[Artemis Windsong]

I don't know where to check each month's interest. Which tab?

I have the interest from the money I moved into TDirect that I will need to stash probably at my local CU. I have a step up 3 year CD there that is in the paltry 1%+ category. It was good when I bought it.

[minnesotapaintlady]

Jan 2, 2023 10:17:38 GMT -5 Artemis Windsong said:

I don't know where to check each month's interest. Which tab?

They don't break it down by month on the TD site.  Some of us are just anal with the tracking. 

[seriousthistime]

Jan 2, 2023 0:13:37 GMT -5 Rukh O'Rorke said:

Jan 1, 2023 9:10:42 GMT -5 seriousthistime said:

I just bought $10K worth for 2023. 

Happy New Year, all.

I guess you are serious this time!!!

I really am!  Being seriousthistime also got me out of debt, thanks to the Women in Red Racers.  

[Rukh O'Rorke]

Jan 2, 2023 10:34:45 GMT -5 minnesotapaintlady said:

Jan 2, 2023 10:17:38 GMT -5 Artemis Windsong said:

I don't know where to check each month's interest. Which tab?

They don't break it down by month on the TD site.  Some of us are just anal with the tracking. 

yeah - I just compare dec bal to nov balance to figure it out.

since we networthers have been tracking monthly, very easy to see....

I need to compile EOY numbers......lol I don't want to!!