crboone wrote:Oh okay. So it sounds like I do need to transfer back to my checking first, then. I appreciate the information.
That's not how I read. I think the conclusion was that you could push money from Vanguard to TD so that you would have money at TD to buy I bonds. That doesn't mean you can redeem an I bond at TD and push the money back to Vanguard. TD will push the money back to your linked checking account, which you can also use for purchases. We are waiting for a final answer on the push from Vanguard question, but my guess is yes. tfb said no, but I think he later admitted that he was answering a different question.
Correct. I said Vanguard doesn't like outside entities such as TreasuryDirect or another bank debiting the Vanguard account, not that Vanguard itself can't initiate them. Buying I Bonds at TreasuryDirect normally requires TD to debit the linked account, unless you go through the trouble of pushing the money to buy C of I.
C of I: Zero-Percent Certificate of Indebtedness That's a holding cell at TD for money that hasn't been used to purchase anything yet.
What is a Zero-Percent Certificate of Indebtedness (Zero-Percent C of I or C of I)?
The Zero-Percent Certificate of Indebtedness (Zero-Percent C of I or C of I) is a Treasury security that does not earn any interest. It is intended to be used as a source of funds for purchasing eligible interest-bearing securities.
Is there a limit to the amount of money I can hold in my Zero-Percent C of I?
No. There's no limit to how much money you can hold, but remember, your Zero-Percent C of I does not earn any interest.
How do I fund my Zero-Percent C of I?
You may instruct us to debit your bank account for a security purchase or you may establish a payroll deduction that will credit the Zero-Percent C of I in your account. You may also use your Zero-Percent C of I as a payment destination for savings bond redemptions and marketable security maturity and interest payments. Click Payroll Zero-Percent Certificate of Indebtedness for information about funding your Payroll C of I to purchase savings bonds through the Payroll Savings Plan.
Is there a limit to the amount of money I may request from my bank account to fund my Zero-Percent C of I?
Each transaction is limited to $1,000. You may, however, schedule multiple transactions each business day to fund your Zero-Percent C of I.
When are funds in the Zero-Percent C of I available to use for purchases?
Electronic deposits are generally available to use for purchases the business day the funds are received.
Can I redeem a security within my account and have the proceeds sent to my Zero-Percent C of I?
Yes. You may designate Zero-Percent C of I as the payment destination when you schedule a redemption.
Can I use both my Zero-Percent C of I and my bank account to purchase a security?
No. The source of funds selected for a security purchase can be either Zero-Percent C of I or a designated bank account, not both.
How do I buy securities with a Zero-Percent C of I?
You may buy interest-bearing securities with a Zero-Percent C of I by selecting it as a source of funds on Buy Direct.