I-bonds

[Jim_n_NYC]

19 hours ago, handiacefailure said:

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   

If you are talking about emergency funds, why put them in a bond or bill at all?  I have money in a treasury fund at Schwab that's getting 3.96% (last 7-day yield) and is state and local tax exempt, so just like a US bond.  I can get the money out with one day notice, not 28.

[jayjaycali]

Etrade has a 4.00% high yield savings that you can instantly fund and instantly withdraw.  

[BuffaloKyle]

Here's a really cool video I just found. There is a option on treasury direct to have federal taxes withheld, from not only i bonds but any security you own at the time, when you partially or fully redeem them. Then you don't have to worry about owing taxes on it when you file your taxes. There really is no reason then to go through the hassle of reporting it every year. You can choose to have 0% - 50% of the redemption amount withheld for federal taxes:

 

[BuffaloKyle]

Forecast for the new i bond rate coming Nov 1 is a variable rate of 2.8% - 3.0% and a fixed rate of 0.9% for a total rate of roughly 3.7% - 3.9%

Forecast: I Bond’s fixed rate is likely to fall to 0.90% | Treasury Inflation-Protected Securities

TIPSWATCH.COM

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By David Enna, Tipswatch.com In two months, probably on Halloween morning, the Treasury will announce a new fixed rate, inflation-adjusted variable rate and...

 

[Bokomaru]

On 7/5/2025 at 2:09 PM, BuffaloKyle said:

Here's a really cool video I just found. There is a option on treasury direct to have federal taxes withheld, from not only i bonds but any security you own at the time, when you partially or fully redeem them. Then you don't have to worry about owing taxes on it when you file your taxes. There really is no reason then to go through the hassle of reporting it every year. You can choose to have 0% - 50% of the redemption amount withheld for federal taxes:

I guess I should get off my ass and sell my old ibonds which are now paying less than 3%.
 

Question: why would anyone withhold 50%? Federal income taxes only go to 37%. 

[+ Vegas_Millennial]

1 hour ago, Bokomaru said:

Question: why would anyone withhold 50%? Federal income taxes only go to 37%. 

If one has other sources of income (such as income from escort or masseur activities) where federal taxes are not automatically withheld from a paycheck, then increasing the withholdings on other income streams is a way to make the required tax payments throughout the year in lieu of submitting estimated quarterly payments for the taxes owed on income from other sources in the same tax year.

Edited September 8 by Vegas_Millennial

[handiacefailure]

I'm really liking the etf "SGOV"    Has a dividend yield of around 4.4% and is exempt from state tax since it's government securities and unike a 28 day t-note you have next day access to the money if you need it.   

[Lotus-eater]

15 hours ago, Vegas_Millennial said:

If one has other sources of income (such as income from escort or masseur activities) where federal taxes are not automatically withheld from a paycheck, then increasing the withholdings on other income streams is a way to make the required tax payments throughout the year in lieu of submitting estimated quarterly payments for the taxes owed on income from other sources in the same tax year.

New tax law gives $25K deduction for tips (Treasury Tipped Occupation Code 602 for massage therapists), so you can adjust withholding accordingly.