I-bonds

[handiacefailure]

11 hours ago, BuffaloKyle said:

I subscribe to this guy's YouTube channel and he does a very good i-bond projection video every month. Just updated it with today's inflation report numbers. He is projecting starting in May the next rate will be a 3.44% inflation rate and a 1.20% fixed rate for a total interest rate of 4.64%. I'll be buying my 10k worth for sure at the end of May.

https://www.youtube.com/watch?v=E0ixbL_xUrQ

 

That's a good rate.   I didn't buy any last year because of how good the stock market was doing and was buying 28 day tbills in addition to stocks but now that the market is doing so bad, might be a good time to buy two-$10K ones.   I see interest continuin to fall and it's possible 1.20% could be a decent interest rate in a few years

[+ augustus]

On 3/10/2025 at 11:23 PM, Kevin Slater said:

I just converted mine.  Took less than four weeks, and now they're all held in my Treasury Direct account.

Kevin Slater

Make sure you have a beneficiary on the account, so it gets passed on quickly just in case.  I was told it takes up to a year to settle things with Treasury Direct if you are going through probate.

[Kevin Slater]

2 hours ago, augustus said:

Make sure you have a beneficiary on the account, so it gets passed on quickly just in case.  I was told it takes up to a year to settle things with Treasury Direct if you are going through probate.

Unfortunately, that has to be done for each individual bond; you can't simply do it at the account level.

Edit:  Turns out that's easily done.  You can modify up to 50 at a time on the site.  Took me 10 minutes to do all mine.  Thanks for suggesting it.

Kevin Slater

[BuffaloKyle]

1 hour ago, Kevin Slater said:

Unfortunately, that has to be done for each individual bond; you can't simply do it at the account level.

Edit:  Turns out that's easily done.  You can modify up to 50 at a time on the site.  Took me 10 minutes to do all mine.  Thanks for suggesting it.

Kevin Slater

Also don't forget if you do add a beneficiary on your accounts to write down everywhere you do have money and account numbers so if you pass they know where exactly you have all your money stored.

Edited March 14 by BuffaloKyle

[handiacefailure]

On 3/13/2025 at 7:55 PM, augustus said:

Make sure you have a beneficiary on the account, so it gets passed on quickly just in case.  I was told it takes up to a year to settle things with Treasury Direct if you are going through probate.

I have a pourover will leaving everything to my trust but still like to have a TOD on all my accounts and just went on TD and it isn't giving me the option to add the trust as the benficiary.   Requiring a first and last name and SSN.

 

Anyone here know how to add a trust as the beneficary (I don't have a separated Fed ID number for it).   My other account with TD is in the name of my trust so not too concerned about that one.   

[handiacefailure]

On 3/13/2025 at 11:31 PM, BuffaloKyle said:

Also don't forget if you do add a beneficiary on your accounts to write down everywhere you do have money and account numbers so if you pass they know where exactly you have all your money stored.

Even if you don't have a TD account that's a smart thing to do.   I have a print out of my bank and investment accounts with my printed out trust documents in my spare room in case something happens to me.     

[+ augustus]

On 3/15/2025 at 10:34 PM, handiacefailure said:

I have a pourover will leaving everything to my trust but still like to have a TOD on all my accounts and just went on TD and it isn't giving me the option to add the trust as the benficiary.   Requiring a first and last name and SSN.

My guess is that they don't want to get involved with a Trust.  Too complicated.  With a Trust, they would adhere to a Probate Court order, but going through probate is a real PITA for the heirs.  

[+ Vegas_Millennial]

On 3/15/2025 at 7:34 PM, handiacefailure said:

I have a pourover will leaving everything to my trust but still like to have a TOD on all my accounts and just went on TD and it isn't giving me the option to add the trust as the benficiary.   Requiring a first and last name and SSN.

 

Anyone here know how to add a trust as the beneficary (I don't have a separated Fed ID number for it).   My other account with TD is in the name of my trust so not too concerned about that one.   

Call them up and ask. 

While I invest with a much smaller firm than TD Ameritrade, I had the same issue.  The option to add a trust as beneficiary was not acceptable online, but it was available when I called and spoke with someone in person.  (Actually, the very reason that my firm is so helpful with my telephone calls is the primary reason I stay with them, despite larger firms having funds with lower fees).

[handiacefailure]

On 3/17/2025 at 4:15 PM, augustus said:

My guess is that they don't want to get involved with a Trust.  Too complicated.  With a Trust, they would adhere to a Probate Court order, but going through probate is a real PITA for the heirs.  

Would just be a simple matter of cutting the check to the trust instead of an individual.   Seems like it would be simpler to have a trust as a TOD than no one when I die,   I may just start buying my 28 day t-bills (not sure if I’m going to keep buying them much longer the way interest is dropping) in my Treasury direct account for my trust.   May be simpler.    I have a separate TD account for my trust, set it up so I could get around the $10K a year rule and buy two Ibonds a year that way. 

[BuffaloKyle]

Final i-bond prediction for next month from the guy I subscribe to on YouTube. He is projecting starting in May the next rate will be a 2.86% inflation rate and a 1.20% fixed rate for a total interest rate of 4.06%. Down a bit from his prediction last month due to cooler than expected inflation numbers that just came out but I'll be getting my 10k worth still at the end of next month. With the fixed rate it's a very good idea to buy one as if inflation does go up from these tariffs you'll really be getting an amazing return on these i-bonds eventually. I'm glad I'll have a few now of these with an added fixed rate.

https://www.youtube.com/watch?v=r9AzKpzIhNc

 

[BuffaloKyle]

I actually just read another article and this guy is predicting a fixed rate of 0.9% next month. I think I'll actually just buy one at the end of this month. I really don't wanna risk missing out on that 1.2% fixed rate.

https://seekingalpha.com/article/4774305-series-i-savings-bonds-a-potentially-higher-yield-hideout-from-trump-tariff-impacts

 

[Kevin Slater]

17 hours ago, BuffaloKyle said:

I actually just read another article and this guy is predicting a fixed rate of 0.9% next month. I think I'll actually just buy one at the end of this month. I really don't wanna risk missing out on that 1.2% fixed rate.

https://seekingalpha.com/article/4774305-series-i-savings-bonds-a-potentially-higher-yield-hideout-from-trump-tariff-impacts

 

You can purchase in any amount, so you could also split between the two periods.  Also, I seem to think that you have a couple days to react between the announcement and it taking effect.  I may be wrong.

Kevin Slater

[BuffaloKyle]

53 minutes ago, Kevin Slater said:

You can purchase in any amount, so you could also split between the two periods.  Also, I seem to think that you have a couple days to react between the announcement and it taking effect.  I may be wrong.

Kevin Slater

No I believe you are right on that second part. I think they do officially release the rates while still giving you a couple days to lock in the current one.

[+ Lucky]

Late last year I cashed out my I bond. Should I have not gotten a 1099-INT?

[Beancounter]

42 minutes ago, Lucky said:

Late last year I cashed out my I bond. Should I have not gotten a 1099-INT?

I don’t think Treasury Direct sends out 1099s in the mail.  At least they didn’t for me.  I logged into my Treasury Direct account and printed out my 1099s for my T-bills from their website. 
 

Try logging into your account and navigate to the tax information tab.  You should find your 1099 there. 

[handiacefailure]

2 hours ago, Lucky said:

Late last year I cashed out my I bond. Should I have not gotten a 1099-INT?

They should have sent you an email earlier this year when it was ready.   You just go under manage direct to get it.   I have a lot of 28 day t-notes and think the 1099 has way too much info on it.   It gives all your transactions.

 

Remember if you live in a state with income tax the interest is exempt from state taxes.  

[BuffaloKyle]

I went ahead and bought my $10k worth to lock in the 1.20% fixed rate. I found another good website https://tipswatch.com/ that does I Bond predictions and he is predicting a drop to 1.10% fixed rate but he did say with the new administration in DC who knows what they possibly could make it as there's not a set or at least public formula for the fixed rate.

 

[BeamerBikes]

I found that treasurydirect is getting more and more unreliable.  
I snagged an additional $5k, I’ll wait to see what the rates are for the rest. 
The website being finicky on when it will decide to be available is causing me some pause.  Like seriously?!?!  They don’t want paper bonds anymore. It’s the middle of the business day.  Keep your login page on your rinky dink site up!  

[BuffaloKyle]

The new rate was just posted on the Treasury website. 2.86% inflation rate plus a 1.10% fixed rate for an overall interest rate of 3.98% after rounding.

[BeamerBikes]

11 hours ago, BuffaloKyle said:

The new rate was just posted on the Treasury website. 2.86% inflation rate plus a 1.10% fixed rate for an overall interest rate of 3.98% after rounding.

Decent rate - I view it as the place to park the emergency funds.  
I’ll likely optimize/trade up from the lower fixed rate .9% bonds, and that will take me up to the limit for the rest of the year.  I’ll lose 3 month interest, but it’s unlikely to see higher fixed rates anytime soon.  God help us all if we do.  

[+ FrankR]

6 hours ago, BeamerBikes said:

Decent rate - I view it as the place to park the emergency funds.  
I’ll likely optimize/trade up from the lower fixed rate .9% bonds, and that will take me up to the limit for the rest of the year.  I’ll lose 3 month interest, but it’s unlikely to see higher fixed rates anytime soon.  God help us all if we do.  

By your own admission, Treasury Direct is problematic. It has taken me up to 3 days to get a response to a redemption request. Emergency funds should be available in an emergency - almost immediately, so I hesitate to park my emergency funds here.

On 4/29/2025 at 7:22 PM, BeamerBikes said:

I found that treasurydirect is getting more and more unreliable.  
I snagged an additional $5k, I’ll wait to see what the rates are for the rest. 
The website being finicky on when it will decide to be available is causing me some pause.  Like seriously?!?!  They don’t want paper bonds anymore. It’s the middle of the business day.  Keep your login page on your rinky dink site up!  

 

[Jim_n_NYC]

For comparison, I need to rollover some of my treasuries tomorrow (matured today), and the 6 month bills are listing as 4.19% for 6 month and 4.26% for 3 month.

[BeamerBikes]

On 5/1/2025 at 6:03 AM, FrankR said:

By your own admission, Treasury Direct is problematic. It has taken me up to 3 days to get a response to a redemption request. Emergency funds should be available in an emergency - almost immediately, so I hesitate to park my emergency funds here.

Aye, I may be a bit hypocritical. I park the long term oh shit everything has gone to hell I shouldn’t feel bad liquidating this pile.  True immediate emergency fund is cash at home. I view the ibond as something more than the savings account, but going to month to month emergency.  As opposed to I have sell funds out of my brokerage in a down market to keep from eating alpo and a roof over my head type.  It’s just hard enough to get transferred that it’ll prevent be raided for a new car desire versus need. 

[handiacefailure]

Bought a $10K on 4/29.   I'll see how rates are and the stock market is doing later in the year before I buy a second one this year

 

 

[handiacefailure]

On 5/1/2025 at 6:03 AM, FrankR said:

By your own admission, Treasury Direct is problematic. It has taken me up to 3 days to get a response to a redemption request. Emergency funds should be available in an emergency - almost immediately, so I hesitate to park my emergency funds here.

 

Why would you invest emergency funds in an Ibond?   You can't access the money for one year.    

As long as you know you can go 28 days without needing the money I would do 28 day t-bills and just renew them if you don't need the money.   I've always had the money right on time as T-bills matured into my savings account