How long does it take to receive money after cashing out an Ibond?

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Kennedy
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How long does it take to receive money after cashing out an Ibond?

Post by Kennedy »

I purchased an ibond via Treasure Direct almost a year ago, and the money was taken out of my linked checking account.

If I want to cash out the bond, is the process as simple as clicking a few buttons on tresurydirect.com and the money showing up the next day in my linked account? (I understand I must wait one year after the purchase, and I will lose three months interest if cashing out prior to five years.)
friar1610
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Re: How long does it take to receive money after cashing out an Ibond?

Post by friar1610 »

Kennedy wrote: Wed Mar 04, 2020 9:39 pm I purchased an ibond via Treasure Direct almost a year ago, and the money was taken out of my linked checking account.

If I want to cash out the bond, is the process as simple as clicking a few buttons on tresurydirect.com and the money showing up the next day in my linked account? (I understand I must wait one year after the purchase, and I will lose three months interest if cashing out prior to five years.)
I sold a few I-Bonds last year and it was basically as you described above. IIRC, it took 2 days to show up in the linked account.

Don't forget that if you make money on the I-Bond (I.e., earn interest) you will owe Federal income tax when you do your 2020 taxes next year. TD does not send you a 1099-INT; you have to retrieve it from the TD site yourself - something it could be easy to forget.
Friar1610
niceguy7376
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Re: How long does it take to receive money after cashing out an Ibond?

Post by niceguy7376 »

We just cashed our only purchase of I bonds that were bought in 2013 in feb 2020.
After finally able to login to our accounts (after being locked for not using), it took 5 clicks to cash out and it showed in our bank account in two days. Now i need to remember to download the tax doc next year.
Jack FFR1846
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Re: How long does it take to receive money after cashing out an Ibond?

Post by Jack FFR1846 »

This is so much more convenient with paper bonds, which is all I own. I bring them to my credit union and sign them. I deposit them into my account. The funds are instantly available without any hold.
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whodidntante
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Re: How long does it take to receive money after cashing out an Ibond?

Post by whodidntante »

Jack FFR1846 wrote: Thu Mar 05, 2020 1:30 pm This is so much more convenient with paper bonds, which is all I own. I bring them to my credit union and sign them. I deposit them into my account. The funds are instantly available without any hold.
We may have different ideas of what convenience means.
bhtomj
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Re: How long does it take to receive money after cashing out an Ibond?

Post by bhtomj »

Treasury Direct will send you an email notification next year. Something like "You have a tax document".
The redemption should show in the bottom left of "Manage Direct" now under the calendar year..
Jack FFR1846
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Re: How long does it take to receive money after cashing out an Ibond?

Post by Jack FFR1846 »

whodidntante wrote: Thu Mar 05, 2020 1:36 pm
Jack FFR1846 wrote: Thu Mar 05, 2020 1:30 pm This is so much more convenient with paper bonds, which is all I own. I bring them to my credit union and sign them. I deposit them into my account. The funds are instantly available without any hold.
We may have different ideas of what convenience means.
Probably just my own circumstances. I take a walk at lunch time every day and literally walk right by the front door of the credit union.
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HueyLD
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Re: How long does it take to receive money after cashing out an Ibond?

Post by HueyLD »

Kennedy wrote: Wed Mar 04, 2020 9:39 pm I purchased an ibond via Treasure Direct almost a year ago, and the money was taken out of my linked checking account.

If I want to cash out the bond, is the process as simple as clicking a few buttons on tresurydirect.com and the money showing up the next day in my linked account? (I understand I must wait one year after the purchase, and I will lose three months interest if cashing out prior to five years.)
When I redeemed an I bond in 2019, it was in my linked account the next business day.

I can’s say the same for paper bonds because in my area, it is virtually impossible to cash a paper bond for an amount of more than $1,000.
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