I-Bonds purchased monthly can be redeemed when?
I-Bonds purchased monthly can be redeemed when?
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
Dale
Re: I-Bonds purchased monthly can be redeemed when?
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.
Re: I-Bonds purchased monthly can be redeemed when?
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
http://www.treasurydirect.gov/indiv/res ... ibonds.htm
Re: I-Bonds purchased monthly can be redeemed when?
Just to be clear, each monthly purchase creates a new redemption period for that purchase?
Re: I-Bonds purchased monthly can be redeemed when?
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.superhawk wrote:Just to be clear, each monthly purchase creates a new redemption period for that purchase?
Re: I-Bonds purchased monthly can be redeemed when?
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.
Re: I-Bonds purchased monthly can be redeemed when?
Thanks to all for the help. I appreciate it.
Dale
Dale
- dbCooperAir
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Re: I-Bonds purchased monthly can be redeemed when?
Note what Angst 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.
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.
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- Mel Lindauer
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Re: I-Bonds purchased monthly can be redeemed when?
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.dbCooperAir wrote:Note what Angst 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.
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.
Best Regards - Mel |
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Re: I-Bonds purchased monthly can be redeemed when?
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.
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.
- dratkinson
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Re: I-Bonds purchased monthly can be redeemed when?
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.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
...
d.r.a., not dr.a. | I'm a novice investor; you are forewarned.