Bought savings bonds towards end of Jan, and TD says they have issue date 1/1/2012 as expected.
Now on Feb 1, I see older I and EE bonds have Jan interest posted, but not my 2 new I and EE bonds from January.
Any idea why ?
New Savings bonds No interest ?
- Mel Lindauer
- Moderator
- Posts: 35757
- Joined: Mon Feb 19, 2007 7:49 pm
- Location: Daytona Beach Shores, Florida
- Contact:
Re: New Savings bonds No interest ?
Since you're seeing redemption value, the Treasury withholds the last three months' interest prior to you owning the I Bonds for five years (that's to account for the early redemption penalty). After three months, you'll start to see interest show up for the first month, and that pattern will continue until you reach five years. At that time, you'll see all the withheld interest show up at once and you'll think you struck gold!blevine wrote:Bought savings bonds towards end of Jan, and TD says they have issue date 1/1/2012 as expected.
Now on Feb 1, I see older I and EE bonds have Jan interest posted, but not my 2 new I and EE bonds from January.
Any idea why ?
Best Regards - Mel |
|
Semper Fi
Re: New Savings bonds No interest ?
Thanks Mel. Thought that might be it. Been years since I bought one.
With the rate on the EE, I should to be patient for 20 years to bother checking anyway !
With the rate on the EE, I should to be patient for 20 years to bother checking anyway !
- Mel Lindauer
- Moderator
- Posts: 35757
- Joined: Mon Feb 19, 2007 7:49 pm
- Location: Daytona Beach Shores, Florida
- Contact:
Re: New Savings bonds No interest ?
Yeah, at the present time, that EE 3.5% for 20 years doesn't look so shabby when compared to what else is available risk-free and tax deferred.blevine wrote:Thanks Mel. Thought that might be it. Been years since I bought one.
With the rate on the EE, I should to be patient for 20 years to bother checking anyway !
Best Regards - Mel |
|
Semper Fi
Re: New Savings bonds No interest ?
I read on the TD site that the EE bond is guaranteed to double in 20 years. That is simple interest of 5%. That seems to be a no brainer for money you know you don't need for 20 years. Am I missing something here????
-
- Posts: 1317
- Joined: Mon May 17, 2010 9:04 am
Re: New Savings bonds No interest ?
Doubling in 20 years is only 3.52% interest compounded. Depending on your duration and how sure you are about cashing out early, you may want to think hard about this.
Buying EE bonds is similar to buying a 3.52% 20 year CD with a tremendously large early termination penalty. Whereas CDs from institutions such as Ally only charge a small (60 day interest) early termination penalty. Of course, the rate is much inferior as well (1.79% APY on a 5 year CD currently).
Buying EE bonds is similar to buying a 3.52% 20 year CD with a tremendously large early termination penalty. Whereas CDs from institutions such as Ally only charge a small (60 day interest) early termination penalty. Of course, the rate is much inferior as well (1.79% APY on a 5 year CD currently).