I-Bonds purchased monthly can be redeemed when?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
superhawk
Posts: 17
Joined: Thu Jan 16, 2014 1:32 pm

I-Bonds purchased monthly can be redeemed when?

Post by superhawk »

So, I've set up an account with Treasury Direct to buy I-Bonds on a monthly basis until the annual limit is reached. It appears that I'm issued a Bond for each monthly purchase which means when I redeem, I will have a different redemption period for each I-Bond. Is this correct? I looked for an answer before asking but found nothing that addressed this question. Thanks.
Dale
poker27
Posts: 1149
Joined: Mon Apr 01, 2013 2:48 pm

Re: I-Bonds purchased monthly can be redeemed when?

Post by poker27 »

Yes, each bond issued will be redeemable after 12 months (with a 3 month penalty) or after 5 years with no penalty. So I bonds purchased in Jan of 2014 are redeemable Jan of 2015.
Angst
Posts: 2968
Joined: Sat Jun 09, 2007 11:31 am

Re: I-Bonds purchased monthly can be redeemed when?

Post by Angst »

If you go to Treasury Direct and click the main I Bonds link (no need to login), you can read about the basics of I Bonds and in the middle of the page you'll see the answer to your question:

http://www.treasurydirect.gov/indiv/res ... ibonds.htm
Topic Author
superhawk
Posts: 17
Joined: Thu Jan 16, 2014 1:32 pm

Re: I-Bonds purchased monthly can be redeemed when?

Post by superhawk »

Just to be clear, each monthly purchase creates a new redemption period for that purchase?
User avatar
Blues
Posts: 2501
Joined: Wed Dec 10, 2008 10:58 am
Location: Blue Ridge Mtns

Re: I-Bonds purchased monthly can be redeemed when?

Post by Blues »

superhawk wrote:Just to be clear, each monthly purchase creates a new redemption period for that purchase?
Correct. Each bond purchased must be held for a 12 month period before it is eligible for redemption. So if you purchase 12 over 12 months, they will each be redeemable a year from the month of their purchase.
Angst
Posts: 2968
Joined: Sat Jun 09, 2007 11:31 am

Re: I-Bonds purchased monthly can be redeemed when?

Post by Angst »

an i bond purchased in dec 2014 is 1 year old on dec 1st 2015. an i bond purchased in november 2014 is 1 year old on nov 1st 2015.
Topic Author
superhawk
Posts: 17
Joined: Thu Jan 16, 2014 1:32 pm

Re: I-Bonds purchased monthly can be redeemed when?

Post by superhawk »

Thanks to all for the help. I appreciate it.
Dale
User avatar
dbCooperAir
Posts: 1107
Joined: Tue Jan 07, 2014 9:13 pm

Re: I-Bonds purchased monthly can be redeemed when?

Post by dbCooperAir »

Angst wrote:an i bond purchased in dec 2014 is 1 year old on dec 1st 2015. an i bond purchased in november 2014 is 1 year old on nov 1st 2015.
Note what Angst wrote.

If you buy Dec 31st its one year old in the next year on Dec 1st.

When I buy I-bonds I generally put it off to the end of the month because I'm lazy and I'm going to get the whole month of interest anyway. I also prefer group my buys too 2-3 times per year, less stuff to keep track of.
Neither a wise man nor a brave man lies down on the tracks of history to wait for the train of the future to run over him. | -Dwight D. Eisenhower-
User avatar
Mel Lindauer
Moderator
Posts: 35782
Joined: Mon Feb 19, 2007 7:49 pm
Location: Daytona Beach Shores, Florida
Contact:

Re: I-Bonds purchased monthly can be redeemed when?

Post by Mel Lindauer »

dbCooperAir wrote:
Angst wrote:an i bond purchased in dec 2014 is 1 year old on dec 1st 2015. an i bond purchased in november 2014 is 1 year old on nov 1st 2015.
Note what Angst wrote.

If you buy Dec 31st its one year old in the next year on Dec 1st.

When I buy I-bonds I generally put it off to the end of the month because I'm lazy and I'm going to get the whole month of interest anyway. I also prefer group my buys too 2-3 times per year, less stuff to keep track of.
And just to add to what dbCooper wrote; you won't earn any additional interest by holding beyond the 1st of the month unless you own on the last day of the month. So it makes sense to redeem them on or around the 1st of the month.
Best Regards - Mel | | Semper Fi
User avatar
Flobes
Posts: 1771
Joined: Mon Feb 15, 2010 11:40 pm
Location: Home

Re: I-Bonds purchased monthly can be redeemed when?

Post by Flobes »

Here's a very useful IBond Excel calculator and portfolio tracker. Of course, I learned about it on the Boglehead Forum.

http://eyebonds.info/downloads/pages/IB ... lator.html

You monitor all your IBonds in the same place. And view them individually or in total, as they grow, month by month, year after year. You can opt to see either redemption value or full value. As well as some other metrics, like Dec-Dec or Jan-Jan totals.

Each May and November, you feed it the newly published rates. It holds your entire IBond history: paper bonds and electronic bonds. It contains complete instructions and notes, so you don't have to remember how to update or adjust it. It's easy.
User avatar
dratkinson
Posts: 6116
Joined: Thu Jul 26, 2007 6:23 pm
Location: Centennial CO

Re: I-Bonds purchased monthly can be redeemed when?

Post by dratkinson »

Flobes wrote:Here's a very useful IBond Excel calculator and portfolio tracker. Of course, I learned about it on the Boglehead Forum.

http://eyebonds.info/downloads/pages/IB ... lator.html

...
Thanks for the idea. Will test it to ensure it produces the same results as SavingsBondCalculator (paper) and TD (electronic). It would be nice to avoid the monthly TD login.
d.r.a., not dr.a. | I'm a novice investor; you are forewarned.
Post Reply