savings bonds with deferred interest

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
kikie
Posts: 339
Joined: Sat Apr 09, 2011 4:37 pm

savings bonds with deferred interest

Post by kikie »

pardon my question but : can one continue to earn interest on a deferred basis, or how does it work if i want to start collecting deferred interest on a savings bonds that doesn't end until 2027 year ? thanks; i'm trying to figure out whether i do roth or TIRA, and i don't know how much longer i will work, could be 10 years , could be 15 no idea , i'm 45 ish
Those who know do not speak; those who speak do not know.
hlfo718
Posts: 785
Joined: Wed Dec 01, 2010 9:17 am
Location: NYC

Re: savings bonds with deferred interest

Post by hlfo718 »

Int is taxed when you redeem the bond. I think you can redeem as little as $25.
Topic Author
kikie
Posts: 339
Joined: Sat Apr 09, 2011 4:37 pm

Re: savings bonds with deferred interest

Post by kikie »

so you can't separate teh interest from redeeming the actual bond/s?
Those who know do not speak; those who speak do not know.
peppers
Posts: 1448
Joined: Tue Oct 25, 2011 7:05 pm

Re: savings bonds with deferred interest

Post by peppers »

paix wrote:so you can't separate teh interest from redeeming the actual bond/s?
on
"..the cavalry ain't comin' kid, you're on your own..."
kaneohe
Posts: 6697
Joined: Mon Sep 22, 2008 12:38 pm

Re: savings bonds with deferred interest

Post by kaneohe »

check this out. Have no idea if true or not but sounds like it might be but you'd want to check w/ Treasury first.

http://www.savings-bond-advisor.com/how ... ngs-bonds/

How to collect HH-like interest payments from series EE or I savings bonds
Friday, January 27th, 2006
Categorized as: Treasury Direct • Series HH or H US Savings Bonds • Savings Bond interest rates
I have EE bonds from 1992 and 1993. I'm thinking about converting them into HH bonds. Do they still have those? I'd like to collect the interest from the bonds.


Tom's response
Series HH bonds are no longer issued. But your bonds will earn interest for 30 years, which means they're good until 2022 - 2023.
If you'd like to collect interest payments from these bonds, what you can do is open an online account directly with the Treasury using TreasuryDirect.
Once your account is open, use it to send a message asking that the account be set up to allow conversion of paper Savings Bonds. They'll set it up for you and you can follow their instructions to convert your paper bonds to electonic bonds.
At that point, you will be able to withdraw money from the bonds. Each withdrawal must be for at least $25, but there are no other conditions. You can withdraw what you're earning in interest or a little more or a little less.
sscritic
Posts: 21858
Joined: Thu Sep 06, 2007 8:36 am

Re: savings bonds with deferred interest

Post by sscritic »

When you do a partial redemption, part is interest and part is not. It's done on a proportional basis. Here are the regulations for savings bonds held at TD.
§363.57 What is the minimum amount of book-entry savings bonds that I may redeem in any one transaction?
Each redemption must be in a minimum amount of $25 redemption value, with additional one-cent increments above that amount, in any one transaction. For example, you may redeem $25.00, $25.01, $25.02, or $25.03, and so forth. Redemptions will be comprised of principal and proportionate interest.
If you redeem a $100 bond that is now worth $104, you get $104, of which $4 is interest to be reported. If you redeem $26 of that $100 ($104) bond, you get $26, of which $1 is interest to be reported.
Post Reply