I Bonds variable rate @ 3.54% in May

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rob
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Re: I Bonds variable rate @ 3.54% in May

Post by rob »

anon_investor wrote: Thu May 20, 2021 8:15 am
LukeHeinz57 wrote: Thu May 20, 2021 6:52 am I jumped on the train! Got my $10K in I Bonds...For people who have been doing this awhile, are your .5% Fixed I Bonds from 2019 going to yield 4.04% in May? That's incredible, makes me wish I hadn't pooh pooh'd the idea of I Bonds when I read about them on Bogleheads a few years ago for the first time... :oops:
I sadly did not jump on the train until 2020. But my 2020 I Bonds will be yielding 3.74% (0.2% fixed rate) in a few months 8-) . I am definitely jealous of the folks who will be getting 4.04%...
Current me wants to slap past me for not maxing out the 60K back when fixed rates were 3 1/2 and could buy them on a credit card to get rewards. I KNEW they were a great deal but I didn't load up cause I didn't have the $ and still invest in stocks..... Current me wants to send past me cash in a brown baggie :D
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien
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Re: I Bonds variable rate @ 3.54% in May

Post by Mel Lindauer »

For those who are having trouble getting locked out of their TD accounts, just want you to know that that nice rate will be available for purchases made within the next six months, so you're not going to miss out. Your start date might be a month later, but you'll still get six months at that high rate before your I Bonds switch to the new rate that will be announced in October. That cycle continues for the life of your I Bonds.

Bottom Line: Everyone gets the full six months at the rate that was in effect when they purchased their I Bonds before switching to the next rate for another six months, etc.
Best Regards - Mel | | Semper Fi
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Re: I Bonds variable rate @ 3.54% in May

Post by Angst »

ChiKid24 wrote: Thu May 20, 2021 10:59 am
Angst wrote: Thu May 20, 2021 10:33 am
Broken Man 1999 wrote: Thu May 20, 2021 10:26 am
Angst wrote: Thu May 20, 2021 10:09 am
ChiKid24 wrote: Thu May 20, 2021 10:01 am Some words of warning for those that are looking to make their first I Bonds purchase this month [Snip...]
Can you provide any insight into what you might have done that got you locked out of TD? This would be helpful.
I almost set up a TD account for wife, but I received an email stating she would have to do the signature dance also. [Snip...]
But your situation sounds different to me. ChiKid24 stated that he had already completed setup for both accounts earlier in the month and was simply logging in now to make a purchase.
My situation is actually the same. The CX rep said they sent me the same email Broken Man quoted about a week after I opened the accounts. I've checked my email and I have no such record. Regardless, the effect is the same. I need to go to the bank and have the forms signed and stamped.

The one thing that I'm thinking could have triggered is that I had linked my Merrill Lynch Cash Management account to TD. That account is in my name alone. So perhaps the issue is I linked that account for both my own account and the trust account and the Merrill account isn't in the name of the trust. If that's the case, perhaps I need to have two separate bank accounts for each TD account. The one in my name needs to link to a bank account in my name and the one in the name of our trust needs to link to a bank account with the trust name. Just guessing.

Also, does anyone know if the form needs to be signed by the same bank as the funding bank? Merrill Lynch doesn't have a local office, but they are owned by Bank of America. It would be simple to go there and have them sign the form. The form doesn't actually require an account number, it's basically just an authorization form.
Ah, I stand corrected, or at least my assumptions were wrong. Thank you for all the details. Perhaps using the most plain vanilla bank account when setting up a TD account is the way to go... and making it an individual account too... but that's pretty limiting. I feel lucky that I've had my account a long time and have no expectation of ever needing to change the bank account I have it tied to, but you never know. :)
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Re: I Bonds variable rate @ 3.54% in May

Post by HomeStretch »

Angst wrote: Thu May 20, 2021 10:23 am I bet you were aware of (or at least quickly discovered and followed) TD's requirement that you NEVER use your browser's Back-Arrow or Back-Page buttons, nor the [Alt-Left arrow] keyboard shortcut. I think failing to strictly behave per TD rules will exit you from your session and if you have trouble logging back in correctly or you repeat the "back page" error again... one thing leads to another leading to a lockout, at least I think this is perhaps the most common explanation.
Unfortunately yes I am aware from personal experience with my individual TD account ~10 years ago. Using the back-arrow key once logged me out and locked my TD account (a call to TD was required to get it unlocked).
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Re: I Bonds variable rate @ 3.54% in May

Post by anon_investor »

Angst wrote: Thu May 20, 2021 1:39 pm
ChiKid24 wrote: Thu May 20, 2021 10:59 am
Angst wrote: Thu May 20, 2021 10:33 am
Broken Man 1999 wrote: Thu May 20, 2021 10:26 am
Angst wrote: Thu May 20, 2021 10:09 am

Can you provide any insight into what you might have done that got you locked out of TD? This would be helpful.
I almost set up a TD account for wife, but I received an email stating she would have to do the signature dance also. [Snip...]
But your situation sounds different to me. ChiKid24 stated that he had already completed setup for both accounts earlier in the month and was simply logging in now to make a purchase.
My situation is actually the same. The CX rep said they sent me the same email Broken Man quoted about a week after I opened the accounts. I've checked my email and I have no such record. Regardless, the effect is the same. I need to go to the bank and have the forms signed and stamped.

The one thing that I'm thinking could have triggered is that I had linked my Merrill Lynch Cash Management account to TD. That account is in my name alone. So perhaps the issue is I linked that account for both my own account and the trust account and the Merrill account isn't in the name of the trust. If that's the case, perhaps I need to have two separate bank accounts for each TD account. The one in my name needs to link to a bank account in my name and the one in the name of our trust needs to link to a bank account with the trust name. Just guessing.

Also, does anyone know if the form needs to be signed by the same bank as the funding bank? Merrill Lynch doesn't have a local office, but they are owned by Bank of America. It would be simple to go there and have them sign the form. The form doesn't actually require an account number, it's basically just an authorization form.
Ah, I stand corrected, or at least my assumptions were wrong. Thank you for all the details. Perhaps using the most plain vanilla bank account when setting up a TD account is the way to go... and making it an individual account too... but that's pretty limiting. I feel lucky that I've had my account a long time and have no expectation of ever needing to change the bank account I have it tied to, but you never know. :)
I am happy I added all my bank accounts to TD before they stopped letting you do that online...
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Re: I Bonds variable rate @ 3.54% in May

Post by BrokerageZelda »

ChiKid24 wrote: Thu May 20, 2021 10:59 am Also, does anyone know if the form needs to be signed by the same bank as the funding bank? Merrill Lynch doesn't have a local office, but they are owned by Bank of America. It would be simple to go there and have them sign the form. The form doesn't actually require an account number, it's basically just an authorization form.
It does not. All that matters is the employee having a qualifying stamp (Medallion or even just a savings bond agent stamp works) and the ability to witness your signature in person. I had my form validated with a savings bond agent stamp at my local credit union, which did not have a Medallion stamp available when I visited.
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Re: I Bonds variable rate @ 3.54% in May

Post by Mudpuppy »

anon_investor wrote: Thu May 20, 2021 1:52 pm I am happy I added all my bank accounts to TD before they stopped letting you do that online...
I started my TD account in the decoder card days, but I did not think back then to add all of my bank accounts. I've had the paperwork sitting in a locked drawer for years now to add my secondary checking account, yet I haven't bothered to get the signature guarantee for it. I probably should check if the form has changed in the past couple of years.

I have not, as of yet, been locked out of my TD account though. I'm always very cautious to click to navigate instead of using browser back buttons or arrow keys.
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Re: I Bonds variable rate @ 3.54% in May

Post by anon_investor »

Mudpuppy wrote: Thu May 20, 2021 3:53 pm
anon_investor wrote: Thu May 20, 2021 1:52 pm I am happy I added all my bank accounts to TD before they stopped letting you do that online...
I started my TD account in the decoder card days, but I did not think back then to add all of my bank accounts. I've had the paperwork sitting in a locked drawer for years now to add my secondary checking account, yet I haven't bothered to get the signature guarantee for it. I probably should check if the form has changed in the past couple of years.

I have not, as of yet, been locked out of my TD account though. I'm always very cautious to click to navigate instead of using browser back buttons or arrow keys.
Ha decoder card, sounds like when I set up my spouse's IRS account earlier this year (yes in 2021) to set up an IRS ID Protection PIN, we had to wait for a code to be mailed to us.
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Re: I Bonds variable rate @ 3.54% in May

Post by RubyTuesday »

Broken Man 1999 wrote: Thu May 20, 2021 10:26 am
Angst wrote: Thu May 20, 2021 10:09 am
ChiKid24 wrote: Thu May 20, 2021 10:01 am Some words of warning for those that are looking to make their first I Bonds purchase this month [Snip...]
Can you provide any insight into what you might have done that got you locked out of TD? This would be helpful.
I almost set up a TD account for wife, but I received an email stating she would have to do the signature dance also. My plans are to buy $10,000 now in my account, and $10,000 in her account at the next rate setting.

So she has months to get the account squared away.

Her issue is this:

"....Thanks again for opening a TreasuryDirect account. We are having difficulty verifying the information you provided when opening your account. For your protection, please complete the Account Authorization form...."

I double/tripled checked all the info sent, but seems something is amiss.

Broken Man 1999
You can buy her $10k now as a gift. It will stay in your gift area until you deliver the gift (when she has her account setup). I gifted spouse several years until finally setting up their account.
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
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Re: I Bonds variable rate @ 3.54% in May

Post by Broken Man 1999 »

RubyTuesday wrote: Thu May 20, 2021 4:55 pm
Broken Man 1999 wrote: Thu May 20, 2021 10:26 am
Angst wrote: Thu May 20, 2021 10:09 am
ChiKid24 wrote: Thu May 20, 2021 10:01 am Some words of warning for those that are looking to make their first I Bonds purchase this month [Snip...]
Can you provide any insight into what you might have done that got you locked out of TD? This would be helpful.
I almost set up a TD account for wife, but I received an email stating she would have to do the signature dance also. My plans are to buy $10,000 now in my account, and $10,000 in her account at the next rate setting.

So she has months to get the account squared away.

Her issue is this:

"....Thanks again for opening a TreasuryDirect account. We are having difficulty verifying the information you provided when opening your account. For your protection, please complete the Account Authorization form...."

I double/tripled checked all the info sent, but seems something is amiss.

Broken Man 1999
You can buy her $10k now as a gift. It will stay in your gift area until you deliver the gift (when she has her account setup). I gifted spouse several years until finally setting up their account.
True. But now my intent is to buy $10,000 for me with POD grandkids. And $10,000 for her with POD grandkids.

If we need the money, we can use it. If not, it will go to the grandkids.

At first I was thinking about doing the registration of WITH for each of us, but neither of us needs more money at this time, though the POD registration will still allow us access if we truly need it.

Broken Man 1999
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batpot
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Re: I Bonds variable rate @ 3.54% in May

Post by batpot »

I bought some I-bonds in August and October of last year - why are they not reflecting the current rate (show 1.68%)?
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Re: I Bonds variable rate @ 3.54% in May

Post by drk »

batpot wrote: Thu May 20, 2021 5:31 pm I bought some I-bonds in August and October of last year - why are they not reflecting the current rate (show 1.68%)?
Your rates adjusted February 1 and April 1, respectively (table). They'll update to the new rate in August and October.
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Re: I Bonds variable rate @ 3.54% in May

Post by RubyTuesday »

Broken Man 1999 wrote: Thu May 20, 2021 5:26 pm
RubyTuesday wrote: Thu May 20, 2021 4:55 pm
Broken Man 1999 wrote: Thu May 20, 2021 10:26 am
Angst wrote: Thu May 20, 2021 10:09 am
ChiKid24 wrote: Thu May 20, 2021 10:01 am Some words of warning for those that are looking to make their first I Bonds purchase this month [Snip...]
Can you provide any insight into what you might have done that got you locked out of TD? This would be helpful.
I almost set up a TD account for wife, but I received an email stating she would have to do the signature dance also. My plans are to buy $10,000 now in my account, and $10,000 in her account at the next rate setting.

So she has months to get the account squared away.

Her issue is this:

"....Thanks again for opening a TreasuryDirect account. We are having difficulty verifying the information you provided when opening your account. For your protection, please complete the Account Authorization form...."

I double/tripled checked all the info sent, but seems something is amiss.

Broken Man 1999
You can buy her $10k now as a gift. It will stay in your gift area until you deliver the gift (when she has her account setup). I gifted spouse several years until finally setting up their account.
True. But now my intent is to buy $10,000 for me with POD grandkids. And $10,000 for her with POD grandkids.

If we need the money, we can use it. If not, it will go to the grandkids.

At first I was thinking about doing the registration of WITH for each of us, but neither of us needs more money at this time, though the POD registration will still allow us access if we truly need it.

Broken Man 1999
Pretty sure you can still buy as gift with the registration as you want (her POD grandkids). If not, once you deliver she can change registration.
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
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Re: I Bonds variable rate @ 3.54% in May

Post by Broken Man 1999 »

RubyTuesday wrote: Thu May 20, 2021 6:31 pm
Broken Man 1999 wrote: Thu May 20, 2021 5:26 pm
RubyTuesday wrote: Thu May 20, 2021 4:55 pm
Broken Man 1999 wrote: Thu May 20, 2021 10:26 am
Angst wrote: Thu May 20, 2021 10:09 am

Can you provide any insight into what you might have done that got you locked out of TD? This would be helpful.
I almost set up a TD account for wife, but I received an email stating she would have to do the signature dance also. My plans are to buy $10,000 now in my account, and $10,000 in her account at the next rate setting.

So she has months to get the account squared away.

Her issue is this:

"....Thanks again for opening a TreasuryDirect account. We are having difficulty verifying the information you provided when opening your account. For your protection, please complete the Account Authorization form...."

I double/tripled checked all the info sent, but seems something is amiss.

Broken Man 1999
You can buy her $10k now as a gift. It will stay in your gift area until you deliver the gift (when she has her account setup). I gifted spouse several years until finally setting up their account.
True. But now my intent is to buy $10,000 for me with POD grandkids. And $10,000 for her with POD grandkids.

If we need the money, we can use it. If not, it will go to the grandkids.

At first I was thinking about doing the registration of WITH for each of us, but neither of us needs more money at this time, though the POD registration will still allow us access if we truly need it.

Broken Man 1999
Pretty sure you can still buy as gift with the registration as you want (her POD grandkids). If not, once you deliver she can change registration.
We wouldn't be giving any of the bonds to each other, so POD to the grandkids works best for us. This way we remove the assets out of our estate easily.

Broken Man 1999
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Re: I Bonds variable rate @ 3.54% in May

Post by batpot »

drk wrote: Thu May 20, 2021 5:39 pm
batpot wrote: Thu May 20, 2021 5:31 pm I bought some I-bonds in August and October of last year - why are they not reflecting the current rate (show 1.68%)?
Your rates adjusted February 1 and April 1, respectively (table). They'll update to the new rate in August and October.
Thanks, that was my guess.
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Re: I Bonds variable rate @ 3.54% in May

Post by Angst »

drk wrote: Thu May 20, 2021 5:39 pm
batpot wrote: Thu May 20, 2021 5:31 pm I bought some I-bonds in August and October of last year - why are they not reflecting the current rate (show 1.68%)?
Your rates adjusted February 1 and April 1, respectively (table). They'll update to the new rate in August and October.
Yep, and batpot can also find their I Bond on one of #Cruncher's excellent webpages and see its past and upcoming rate changes and its growth in value over time: http://eyebonds.info/ibonds/home1000.html
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Re: I Bonds variable rate @ 3.54% in May

Post by RubyTuesday »

Broken Man 1999 wrote: Thu May 20, 2021 6:42 pm
RubyTuesday wrote: Thu May 20, 2021 6:31 pm
Broken Man 1999 wrote: Thu May 20, 2021 5:26 pm
RubyTuesday wrote: Thu May 20, 2021 4:55 pm
Broken Man 1999 wrote: Thu May 20, 2021 10:26 am

I almost set up a TD account for wife, but I received an email stating she would have to do the signature dance also. My plans are to buy $10,000 now in my account, and $10,000 in her account at the next rate setting.

So she has months to get the account squared away.

Her issue is this:

"....Thanks again for opening a TreasuryDirect account. We are having difficulty verifying the information you provided when opening your account. For your protection, please complete the Account Authorization form...."

I double/tripled checked all the info sent, but seems something is amiss.

Broken Man 1999
You can buy her $10k now as a gift. It will stay in your gift area until you deliver the gift (when she has her account setup). I gifted spouse several years until finally setting up their account.
True. But now my intent is to buy $10,000 for me with POD grandkids. And $10,000 for her with POD grandkids.

If we need the money, we can use it. If not, it will go to the grandkids.

At first I was thinking about doing the registration of WITH for each of us, but neither of us needs more money at this time, though the POD registration will still allow us access if we truly need it.

Broken Man 1999
Pretty sure you can still buy as gift with the registration as you want (her POD grandkids). If not, once you deliver she can change registration.
We wouldn't be giving any of the bonds to each other, so POD to the grandkids works best for us. This way we remove the assets out of our estate easily.

Broken Man 1999
I don’t think you’re understanding what I’m saying, but perhaps I’m misunderstanding you :confused

In your TD account, you can buy Series I savings bonds for your wife as a gift with registration of her as primary owner and POD beneficiary. You would eventually “deliver” the gift bonds to her account.

This covers the details...
How to buy gift savings bonds in Treasury Direct Tip Sheet
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Re: I Bonds variable rate @ 3.54% in May

Post by Broken Man 1999 »

RubyTuesday wrote: Thu May 20, 2021 7:51 pm
Broken Man 1999 wrote: Thu May 20, 2021 6:42 pm
RubyTuesday wrote: Thu May 20, 2021 6:31 pm
Broken Man 1999 wrote: Thu May 20, 2021 5:26 pm
RubyTuesday wrote: Thu May 20, 2021 4:55 pm

You can buy her $10k now as a gift. It will stay in your gift area until you deliver the gift (when she has her account setup). I gifted spouse several years until finally setting up their account.
True. But now my intent is to buy $10,000 for me with POD grandkids. And $10,000 for her with POD grandkids.

If we need the money, we can use it. If not, it will go to the grandkids.

At first I was thinking about doing the registration of WITH for each of us, but neither of us needs more money at this time, though the POD registration will still allow us access if we truly need it.

Broken Man 1999
Pretty sure you can still buy as gift with the registration as you want (her POD grandkids). If not, once you deliver she can change registration.
We wouldn't be giving any of the bonds to each other, so POD to the grandkids works best for us. This way we remove the assets out of our estate easily.

Broken Man 1999
I don’t think you’re understanding what I’m saying, but perhaps I’m misunderstanding you :confused

In your TD account, you can buy Series I savings bonds for your wife as a gift with registration of her as primary owner and POD beneficiary. You would eventually “deliver” the gift bonds to her account.

This covers the details...
How to buy gift savings bonds in Treasury Direct Tip Sheet
I DO understand your idea, but it is not what I want to do. I do not want to give our bonds to each other under any circumstance. At death I want the bonds to go to our grandchildren, with no stop along the way.

Unfortunately I cannot open a minors account as I am not a parent, guardian, or provide chief support, per TD:

"...Thank you for submitting your inquiry. Based on our analysis of your submitted inquiry please find our response provided below.

As you stated TreasuryDirect allows a parent, natural guardian, or person providing chief support to open a minor linked account. You are none of these; therefore, if you open a minor linked account it will be an unauthorized account and all the holdings in the account would be considered unauthorized..."


I'm kinda funny about some things. If I want to give someone something via inheritance, then I want as few people between myself and the receiver as is possible. The ideal number between me (or wife) and a grandchild is zero.

Broken Man 1999
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Re: I Bonds variable rate @ 3.54% in May

Post by HueyLD »

Can you let the parents open minor linked accounts instead?
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Re: I Bonds variable rate @ 3.54% in May

Post by Thesaints »

Broken Man 1999 wrote: Fri May 21, 2021 8:20 am True. But now my intent is to buy $10,000 for me with POD grandkids. And $10,000 for her with POD grandkids.

If we need the money, we can use it. If not, it will go to the grandkids.

At first I was thinking about doing the registration of WITH for each of us, but neither of us needs more money at this time, though the POD registration will still allow us access if we truly need it.
Unfortunately I cannot open a minors account as I am not a parent, guardian, or provide chief support, per TD:
Maybe I'm missing something. Why would you want to open a minors account ? You buy the bonds within your account and indicate your grandkids as the beneficiaries on death. They do not need an account until you die.
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Re: I Bonds variable rate @ 3.54% in May

Post by Broken Man 1999 »

Thesaints wrote: Fri May 21, 2021 11:13 am
Broken Man 1999 wrote: Fri May 21, 2021 8:20 am True. But now my intent is to buy $10,000 for me with POD grandkids. And $10,000 for her with POD grandkids.

If we need the money, we can use it. If not, it will go to the grandkids.

At first I was thinking about doing the registration of WITH for each of us, but neither of us needs more money at this time, though the POD registration will still allow us access if we truly need it.
Unfortunately I cannot open a minors account as I am not a parent, guardian, or provide chief support, per TD:
Maybe I'm missing something. Why would you want to open a minors account ? You buy the bonds within your account and indicate your grandkids as the beneficiaries on death. They do not need an account until you die.
Originally I was thinking about a way to hold them on their behalf, much like the typical UGTM/UTMA accounts. I changed my mind though (couldn't do it anyway). By using POD, which is how I set up the new registrations for each of them, I can still use the bonds should we need them. Once we get DW's account open, I'll do the same for her registrations. I will actually be providing the funds for her purchases, she can use hers if needed as well.

HueyLD » Fri May 21, 2021 10:12 am wrote: Can you let the parents open minor linked accounts instead?

Sure, though it would add complexity, and also insert other players into the mix with no upside I can see over POD registration. POD keeps the bonds available for use if needed, easy transfer when I/we assume room temperature.

Broken Man 1999
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Re: I Bonds variable rate @ 3.54% in May

Post by BrokerageZelda »

Broken Man 1999 wrote: Fri May 21, 2021 12:23 pm
Thesaints wrote: Fri May 21, 2021 11:13 am
Broken Man 1999 wrote: Fri May 21, 2021 8:20 am True. But now my intent is to buy $10,000 for me with POD grandkids. And $10,000 for her with POD grandkids.

If we need the money, we can use it. If not, it will go to the grandkids.

At first I was thinking about doing the registration of WITH for each of us, but neither of us needs more money at this time, though the POD registration will still allow us access if we truly need it.
Unfortunately I cannot open a minors account as I am not a parent, guardian, or provide chief support, per TD:
Maybe I'm missing something. Why would you want to open a minors account ? You buy the bonds within your account and indicate your grandkids as the beneficiaries on death. They do not need an account until you die.
Originally I was thinking about a way to hold them on their behalf, much like the typical UGTM/UTMA accounts. I changed my mind though (couldn't do it anyway). By using POD, which is how I set up the new registrations for each of them, I can still use the bonds should we need them. Once we get DW's account open, I'll do the same for her registrations. I will actually be providing the funds for her purchases, she can use hers if needed as well.

HueyLD » Fri May 21, 2021 10:12 am wrote: Can you let the parents open minor linked accounts instead?

Sure, though it would add complexity, and also insert other players into the mix with no upside I can see over POD registration. POD keeps the bonds available for use if needed, easy transfer when I/we assume room temperature.

Broken Man 1999
What you are describing is the definition of gift bonds in TreasuryDirect. When you buy a 'gift bond' registered with your wife as primary and a grandchild as POD beneficiary, it is equivalent to your wife using your money to buy a bond in her own account (which does not exist yet) with the grandchild receiving the funds directly at death.

Your name is never on the bond and you will never receive the funds in the bond - it is held in an 'outbox' separate from your own holdings, and the only way to get the bond out is to release it to your wife's TD account after she creates one. Once you release the bond to your wife's account, it as if she had created a TD account back in May and bought the bond back then, with the intended beneficiary designation intact.

By using the gift function in TD, you can take advantage of an earlier issue date with no impact to your inheritance plans, while allowing your wife to take as much time as she needs to finish the TreasuryDirect account creation process. Once your wife's account is open and any gift bonds are released to her account from yours, she can schedule future purchases in the normal fashion, without having to use the gift mechanic.
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Re: I Bonds variable rate @ 3.54% in May

Post by Broken Man 1999 »

BrokerageZelda wrote: Fri May 21, 2021 1:02 pm
Broken Man 1999 wrote: Fri May 21, 2021 12:23 pm
Thesaints wrote: Fri May 21, 2021 11:13 am
Broken Man 1999 wrote: Fri May 21, 2021 8:20 am True. But now my intent is to buy $10,000 for me with POD grandkids. And $10,000 for her with POD grandkids.

If we need the money, we can use it. If not, it will go to the grandkids.

At first I was thinking about doing the registration of WITH for each of us, but neither of us needs more money at this time, though the POD registration will still allow us access if we truly need it.
Unfortunately I cannot open a minors account as I am not a parent, guardian, or provide chief support, per TD:
Maybe I'm missing something. Why would you want to open a minors account ? You buy the bonds within your account and indicate your grandkids as the beneficiaries on death. They do not need an account until you die.
Originally I was thinking about a way to hold them on their behalf, much like the typical UGTM/UTMA accounts. I changed my mind though (couldn't do it anyway). By using POD, which is how I set up the new registrations for each of them, I can still use the bonds should we need them. Once we get DW's account open, I'll do the same for her registrations. I will actually be providing the funds for her purchases, she can use hers if needed as well.

HueyLD » Fri May 21, 2021 10:12 am wrote: Can you let the parents open minor linked accounts instead?

Sure, though it would add complexity, and also insert other players into the mix with no upside I can see over POD registration. POD keeps the bonds available for use if needed, easy transfer when I/we assume room temperature.

Broken Man 1999
What you are describing is the definition of gift bonds in TreasuryDirect. When you buy a 'gift bond' registered with your wife as primary and a grandchild as POD beneficiary, it is equivalent to your wife using your money to buy a bond in her own account (which does not exist yet) with the grandchild receiving the funds directly at death.

Your name is never on the bond and you will never receive the funds in the bond - it is held in an 'outbox' separate from your own holdings, and the only way to get the bond out is to release it to your wife's TD account after she creates one. Once you release the bond to your wife's account, it as if she had created a TD account back in May and bought the bond back then, with the intended beneficiary designation intact.

By using the gift function in TD, you can take advantage of an earlier issue date with no impact to your inheritance plans, while allowing your wife to take as much time as she needs to finish the TreasuryDirect account creation process. Once your wife's account is open and any gift bonds are released to her account from yours, she can schedule future purchases in the normal fashion, without having to use the gift mechanic.
I am splitting the purchases this year, mine in May, hers in November. By design I don't want the May rate. Gifting would be a good idea if I wanted to buy her bonds at the May rate, for sure.

Broken Man 1999
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Re: I Bonds variable rate @ 3.54% in May

Post by RubyTuesday »

BrokerageZelda wrote: Fri May 21, 2021 1:02 pm
Broken Man 1999 wrote: Fri May 21, 2021 12:23 pm
Thesaints wrote: Fri May 21, 2021 11:13 am
Broken Man 1999 wrote: Fri May 21, 2021 8:20 am True. But now my intent is to buy $10,000 for me with POD grandkids. And $10,000 for her with POD grandkids.

If we need the money, we can use it. If not, it will go to the grandkids.

At first I was thinking about doing the registration of WITH for each of us, but neither of us needs more money at this time, though the POD registration will still allow us access if we truly need it.
Unfortunately I cannot open a minors account as I am not a parent, guardian, or provide chief support, per TD:
Maybe I'm missing something. Why would you want to open a minors account ? You buy the bonds within your account and indicate your grandkids as the beneficiaries on death. They do not need an account until you die.
Originally I was thinking about a way to hold them on their behalf, much like the typical UGTM/UTMA accounts. I changed my mind though (couldn't do it anyway). By using POD, which is how I set up the new registrations for each of them, I can still use the bonds should we need them. Once we get DW's account open, I'll do the same for her registrations. I will actually be providing the funds for her purchases, she can use hers if needed as well.

HueyLD » Fri May 21, 2021 10:12 am wrote: Can you let the parents open minor linked accounts instead?

Sure, though it would add complexity, and also insert other players into the mix with no upside I can see over POD registration. POD keeps the bonds available for use if needed, easy transfer when I/we assume room temperature.

Broken Man 1999
What you are describing is the definition of gift bonds in TreasuryDirect. When you buy a 'gift bond' registered with your wife as primary and a grandchild as POD beneficiary, it is equivalent to your wife using your money to buy a bond in her own account (which does not exist yet) with the grandchild receiving the funds directly at death.

Your name is never on the bond and you will never receive the funds in the bond - it is held in an 'outbox' separate from your own holdings, and the only way to get the bond out is to release it to your wife's TD account after she creates one. Once you release the bond to your wife's account, it as if she had created a TD account back in May and bought the bond back then, with the intended beneficiary designation intact.

By using the gift function in TD, you can take advantage of an earlier issue date with no impact to your inheritance plans, while allowing your wife to take as much time as she needs to finish the TreasuryDirect account creation process. Once your wife's account is open and any gift bonds are released to her account from yours, she can schedule future purchases in the normal fashion, without having to use the gift mechanic.
Thanks for explaining this in the detail to get the point across.
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Re: I Bonds variable rate @ 3.54% in May

Post by Retired1809 »

Why am I not getting the 3.54% rate on I-Bonds that I bought in 2003, 2005 or2014?

According to Treasury Direct, the current interest rates on I-bonds that I hold in paper form are as follow:

I-bonds issued in Oct. 2001: 4.71%
I-bonds issued in Oct. 2003: 2.79%
I-bonds issued in Oct. 2005: 2.89%
I-bonds issued in April 2014: 1.88%

I realize that the variable rate changes every six months but I had understood that "old i-bonds" received the same variable rate as newly-issued i-bonds. What am I missing?

Thanks in advance for your insights.
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Re: I Bonds variable rate @ 3.54% in May

Post by HueyLD »

Per TD:

“When does my bond change rates?

Issue month of your bond: New rates take effect
_____________________. ___________________
January: January 1 and July 1
February: February 1 and August 1
March: March 1 and September 1
April: April 1 and October 1
May: May 1 and November 1
June: June 1 and December 1
July: July 1 and January 1
August: August 1 and February 1
September: September 1 and March 1
October: October 1 and April 1
November: November 1 and May 1
December: December 1 and June 1

Because I bonds that are less than five years old have values that do not include the latest three months of interest, values displayed by the Savings Bond Calculator for these bonds will not reflect rate changes on the schedule in the table above (When does my bond change rates?) When looking at changes in values for these bonds, rate changes will seem to be delayed by three months.”
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Re: I Bonds variable rate @ 3.54% in May

Post by #Cruncher »

Retired1809 wrote: Sat May 29, 2021 7:17 am Why am I not getting the 3.54% rate on I-Bonds that I bought in [2001,] 2003, 2005 or 2014? According to Treasury Direct, the current interest rates on I-bonds that I hold in paper form are as follow:
I-bonds issued in Oct. 2001: 4.71%
I-bonds issued in Oct. 2003: 2.79%
I-bonds issued in Oct. 2005: 2.89%
I-bonds issued in April 2014: 1.88%
I realize that the variable rate changes every six months but I had understood that "old i-bonds" received the same variable rate as newly-issued i-bonds. What am I missing?
The above are the composite rates in effect since April. They will change in October to reflect the most recent 1.77% semi-annual inflation rate.

Code: Select all

Fixed           Composite Rate
 Rate   Issued   04/21  10/21
 ----  -------   -----  -----
 3.0%  10/2001   4.71%  6.59%
 1.1%  10/2003   2.79%  4.66%
 1.2%  10/2005   2.89%  4.76%
 0.2%  04/2014   1.88%  3.74%
The 3.54% rate you refer to is the composite rate for I Bonds with a 0.0% fixed rate. Since yours all have fixed rates greater than 0%, your composite rates are also higher.
Sources:
My post with latest composite rates
My post with previous composite rates
Web site with history of rates and values for every I Bond issued
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Re: I Bonds variable rate @ 3.54% in May

Post by Retired1809 »

Thanks, #Cruncher,'' Your answer was clear and concise. I now feel better about my position in I-bonds!

Retired1809 wrote: ↑Sat May 29, 2021 7:17 am
Why am I not getting the 3.54% rate on I-Bonds that I bought in [2001,] 2003, 2005 or 2014? According to Treasury Direct, the current interest rates on I-bonds that I hold in paper form are as follow:
I-bonds issued in Oct. 2001: 4.71%
I-bonds issued in Oct. 2003: 2.79%
I-bonds issued in Oct. 2005: 2.89%
I-bonds issued in April 2014: 1.88%
I realize that the variable rate changes every six months but I had understood that "old i-bonds" received the same variable rate as newly-issued i-bonds. What am I missing?
The above are the composite rates in effect since April. They will change in October to reflect the most recent 1.77% semi-annual inflation rate.
CODE: SELECT ALL

Fixed Composite Rate
Rate Issued 04/21 10/21
---- ------- ----- -----
3.0% 10/2001 4.71% 6.59%
1.1% 10/2003 2.79% 4.66%
1.2% 10/2005 2.89% 4.76%
0.2% 04/2014 1.88% 3.74%
The 3.54% rate you refer to is the composite rate for I Bonds with a 0.0% fixed rate. Since yours all have fixed rates greater than 0%, your composite rates are also higher.
Sources:
My post with latest composite rates
My post with previous composite rates
Web site with history of rates and values for every I Bond issued
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Re: I Bonds variable rate @ 3.54% in May

Post by LadyGeek »

New member Jadjagjalb has a question which I've moved to a new thread. See: [Looking to invest interest income - how to proceed?]
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Re: I Bonds variable rate @ 3.54% in May

Post by ChiKid24 »

ChiKid24 wrote: Thu May 20, 2021 10:01 am Some words of warning for those that are looking to make their first I Bonds purchase this month. I set up two accounts on the TD website last month, one for me and one for our trust with intention of making my purchases at the end of this month. I went in to access the accounts today as I had heard that the site can be tough to navigate, so figured I would make my purchases now to avoid risking end of month in case there are delays.

Well sure enough, I am locked out of both of my accounts for some reason. I call the TD customer service and they say that I need to print out an Account Authorization form (Form 5444) from their website, have the form signed at my bank by an authorized officer, and then snail mail the form back to Treasury Direct in order to access my account. I explained that my bank doesn't have any physical branch and the lady said I can go to my county court of records and have the form filled out. HUH? Why is this necessary? What year are we in?

Needless to say, I don't think I'll be able to get this all completed and ready to go for a purchase this month. Beyond frustrating. I had heard the horror stories about the clunky website, but this is just plain annoying.
Follow-up post on my experience with TD. I ended up going to my local BofA branch and getting the signature guarantee forms done and mailed the next day. That was Friday May 21. I received an email from TD on May 25 that they received my forms and to allow them sufficient time to review my materials.

Here we are two weeks later and I'm still locked out of my accounts. I'm not sure how long it takes to review a simple signature form that has already been guaranteed by a national bank. I've called TD to inquire and the CX rep says they are reviewing. I asked for the estimate of time and she couldn't give one. I asked if there was someone I could talk to who might have more information and she said there really wasn't. I commented that it's a bit of a black box then, she said yes it is. I asked if I would get some notification when the issue was resolved, she said she wasn't sure.

I read all the posts about the clunky TD website prior to setting up my accounts. I assumed those were just people who might not be very tech savvy. I've never really had any issues setting up online accounts, funding and navigating them. No way would it be an issue for me. But alas, here we are. Though in fairness, my gripe is more with the customer service aspect since I have no clue what is happening with my accounts, why it's taking so long, when it will be complete, or if I'll even know it's resolved. Till then, I'll just keep checking the account and hoping I can get a purchase in before the end of the month.
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Re: I Bonds variable rate @ 3.54% in May

Post by ustaad9 »

HomeStretch wrote: Thu May 20, 2021 10:11 am As another data point, spouse/I set up two entity accounts (for two individual trusts) this month and had no issue with the set-up or buying I-Bonds in each account.
Hi, newbie here. My first post on this site. The question I have relates to the annual buying limit for I bonds. How does one set up a trust account to buy additional i bonds over and above the $10K? What steps does the actual process involve? Do I need a EIN no.? What are the federal and state tax implications? Anyone who can share their experience? It would be much appreciated.
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Re: I Bonds variable rate @ 3.54% in May

Post by anon_investor »

ChiKid24 wrote: Tue Jun 08, 2021 11:01 am
ChiKid24 wrote: Thu May 20, 2021 10:01 am Some words of warning for those that are looking to make their first I Bonds purchase this month. I set up two accounts on the TD website last month, one for me and one for our trust with intention of making my purchases at the end of this month. I went in to access the accounts today as I had heard that the site can be tough to navigate, so figured I would make my purchases now to avoid risking end of month in case there are delays.

Well sure enough, I am locked out of both of my accounts for some reason. I call the TD customer service and they say that I need to print out an Account Authorization form (Form 5444) from their website, have the form signed at my bank by an authorized officer, and then snail mail the form back to Treasury Direct in order to access my account. I explained that my bank doesn't have any physical branch and the lady said I can go to my county court of records and have the form filled out. HUH? Why is this necessary? What year are we in?

Needless to say, I don't think I'll be able to get this all completed and ready to go for a purchase this month. Beyond frustrating. I had heard the horror stories about the clunky website, but this is just plain annoying.
Follow-up post on my experience with TD. I ended up going to my local BofA branch and getting the signature guarantee forms done and mailed the next day. That was Friday May 21. I received an email from TD on May 25 that they received my forms and to allow them sufficient time to review my materials.

Here we are two weeks later and I'm still locked out of my accounts. I'm not sure how long it takes to review a simple signature form that has already been guaranteed by a national bank. I've called TD to inquire and the CX rep says they are reviewing. I asked for the estimate of time and she couldn't give one. I asked if there was someone I could talk to who might have more information and she said there really wasn't. I commented that it's a bit of a black box then, she said yes it is. I asked if I would get some notification when the issue was resolved, she said she wasn't sure.

I read all the posts about the clunky TD website prior to setting up my accounts. I assumed those were just people who might not be very tech savvy. I've never really had any issues setting up online accounts, funding and navigating them. No way would it be an issue for me. But alas, here we are. Though in fairness, my gripe is more with the customer service aspect since I have no clue what is happening with my accounts, why it's taking so long, when it will be complete, or if I'll even know it's resolved. Till then, I'll just keep checking the account and hoping I can get a purchase in before the end of the month.
Hopefully you can get it resolved. My spouse and I were fortunate, we never got hit with the need for a dreaded MSG to unlock, we were able to do so over the phone.
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Re: I Bonds variable rate @ 3.54% in May

Post by BrokerageZelda »

ustaad9 wrote: Tue Jun 08, 2021 3:04 pm
HomeStretch wrote: Thu May 20, 2021 10:11 am As another data point, spouse/I set up two entity accounts (for two individual trusts) this month and had no issue with the set-up or buying I-Bonds in each account.
Hi, newbie here. My first post on this site. The question I have relates to the annual buying limit for I bonds. How does one set up a trust account to buy additional i bonds over and above the $10K? What steps does the actual process involve? Do I need a EIN no.? What are the federal and state tax implications? Anyone who can share their experience? It would be much appreciated.
A trust is a legal agreement that goes into effect when a trust document is signed and notarized. Many people hire a 'trusts & estates' lawyer to craft trust documents that fulfill their estate planning, asset protection, or other needs; there are also books out there about how to "make your own" trust. Figuring out what kind of trust (if any) is right for you, and how to start one properly, is your responsibility.

For something like a revocable/living trust with yourself as trustee, you do not need to get an EIN and can just use your SSN as the trust's tax ID. While you are alive, any income from the trust is reported under your SSN and is treated as your income by the IRS.

A TreasuryDirect trust account has its own $10k purchase limit, even if it shares a tax ID number with an individual account.

When creating a TreasuryDirect account for a trust, choose "Trust" on the first page of the TreasuryDirect account creation form. Your "Entity Taxpayer Identification Number" is your SSN, and the 'Entity' information for your trust is the same as the 'Entity Account Manager' information. Note that TreasuryDirect has a very specific format for the "Entity Name (Registration)" of a Trust account; be sure to research and understand the correct format before creating a trust account.

Interest on US Treasury securities (including Savings Bonds) is taxed as ordinary income by the IRS (not capital gains), and is exempt from state and local taxation (which is useful if you live in a state with significant state/local income taxes). By default, the income tax on Savings Bond interest is deferred until you cash the bond or on the date of maturity, whichever comes first.
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tomsense76
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Re: I Bonds variable rate @ 3.54% in May

Post by tomsense76 »

ChiKid24 wrote: Tue Jun 08, 2021 11:01 am
ChiKid24 wrote: Thu May 20, 2021 10:01 am Some words of warning for those that are looking to make their first I Bonds purchase this month. I set up two accounts on the TD website last month, one for me and one for our trust with intention of making my purchases at the end of this month. I went in to access the accounts today as I had heard that the site can be tough to navigate, so figured I would make my purchases now to avoid risking end of month in case there are delays.

Well sure enough, I am locked out of both of my accounts for some reason. I call the TD customer service and they say that I need to print out an Account Authorization form (Form 5444) from their website, have the form signed at my bank by an authorized officer, and then snail mail the form back to Treasury Direct in order to access my account. I explained that my bank doesn't have any physical branch and the lady said I can go to my county court of records and have the form filled out. HUH? Why is this necessary? What year are we in?

Needless to say, I don't think I'll be able to get this all completed and ready to go for a purchase this month. Beyond frustrating. I had heard the horror stories about the clunky website, but this is just plain annoying.
Follow-up post on my experience with TD. I ended up going to my local BofA branch and getting the signature guarantee forms done and mailed the next day. That was Friday May 21. I received an email from TD on May 25 that they received my forms and to allow them sufficient time to review my materials.

Here we are two weeks later and I'm still locked out of my accounts. I'm not sure how long it takes to review a simple signature form that has already been guaranteed by a national bank. I've called TD to inquire and the CX rep says they are reviewing. I asked for the estimate of time and she couldn't give one. I asked if there was someone I could talk to who might have more information and she said there really wasn't. I commented that it's a bit of a black box then, she said yes it is. I asked if I would get some notification when the issue was resolved, she said she wasn't sure.

I read all the posts about the clunky TD website prior to setting up my accounts. I assumed those were just people who might not be very tech savvy. I've never really had any issues setting up online accounts, funding and navigating them. No way would it be an issue for me. But alas, here we are. Though in fairness, my gripe is more with the customer service aspect since I have no clue what is happening with my accounts, why it's taking so long, when it will be complete, or if I'll even know it's resolved. Till then, I'll just keep checking the account and hoping I can get a purchase in before the end of the month.
Interesting. Had to also do this form last year (also went to local BoA branch). Form arrived there Nov 9. Account was unlocked Nov 19. So it took nearly 2 full work weeks to resolve from receipt of the form

Should add they sent an email when it was unlocked. Might be worth going through spam just in case it got filtered
"Anyone who claims to understand quantum theory is either lying or crazy" -- Richard Feynman
HomeStretch
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Re: I Bonds variable rate @ 3.54% in May

Post by HomeStretch »

ustaad9 wrote: Tue Jun 08, 2021 3:04 pm
HomeStretch wrote: Thu May 20, 2021 10:11 am As another data point, spouse/I set up two entity accounts (for two individual trusts) this month and had no issue with the set-up or buying I-Bonds in each account.
Hi, newbie here. My first post on this site. The question I have relates to the annual buying limit for I bonds. How does one set up a trust account to buy additional i bonds over and above the $10K? What steps does the actual process involve? Do I need a EIN no.? What are the federal and state tax implications? Anyone who can share their experience? It would be much appreciated.
Welcome to the forum!

Step 1 - you need a Trust, do you have one set up?

Step 2 - The type of trust you have determines whether you use your SS# (such as for a revocable trust) or the Trust’s EIN to set up an Entity Account (if the Trust is eligible) for the Trust at TreasuryDirect (TD). This TD web page may be helpful:
https://www.treasurydirect.gov/indiv/he ... rnmore.htm

Step 3 - you link a bank account to your TD account so you can buy the bond.

I-Bonds are state/local tax exempt and the interest can be recognized on your Federal return either annually or at maturity/redemption. You may also be eligible to use I-Bond proceeds for higher education and not pay taxes on the interest. The Federal tax rate paid on interest would be at your or the Trust’s rate depending on the type of trust. This TD webpage may be helpful:
https://www.treasurydirect.gov/indiv/re ... nsider.htm

You can also buy up to $5,000 of I-Bonds (above your individual annual limit of $10,000) with your Federal tax refund. This TD web page may be helpful:
https://www.treasurydirect.gov/indiv/re ... eature.htm
ustaad9
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Re: I Bonds variable rate @ 3.54% in May

Post by ustaad9 »

Thanks. I clicked on the links in your response and quickly determined that most of the trust options are either not available to me or too complicated to consider. How difficult is it to set up a revocable trust? Do I need a lawyer? Will I be required to file a separate return for that trust? Also, with respect to paper bonds, am I restricted to $5K per SSN or $5K per return? Currently filing MFJ.
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Re: I Bonds variable rate @ 3.54% in May

Post by anon_investor »

ustaad9 wrote: Wed Jun 09, 2021 10:05 am Thanks. I clicked on the links in your response and quickly determined that most of the trust options are either not available to me or too complicated to consider. How difficult is it to set up a revocable trust? Do I need a lawyer? Will I be required to file a separate return for that trust? Also, with respect to paper bonds, am I restricted to $5K per SSN or $5K per return? Currently filing MFJ.
It is $5k per return. So if you are MFJ then $5k.
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Re: I Bonds variable rate @ 3.54% in May

Post by BrokerageZelda »

ustaad9 wrote: Wed Jun 09, 2021 10:05 am Thanks. I clicked on the links in your response and quickly determined that most of the trust options are either not available to me or too complicated to consider. How difficult is it to set up a revocable trust? Do I need a lawyer? Will I be required to file a separate return for that trust?
It's possible to DIY a revocable trust with a book that explains how to do it, but you'll be taking the legal consequences of any errors or omissions into your own hands. Someone with a mixed family attempting to protect assets and care for minor children with a trust will have a much more complex trust document (and more complex needs for legal advice) than someone creating a simple trust whose only earthly duty is purchasing $10k of savings bonds per year. If you're not sure, ask a lawyer.

A personal revocable/living trust with yourself as grantor and trustee is taxed as a pass-through entity by the IRS and can use your SSN as its tax ID; any taxes incurred by the trust during your lifetime are treated as your personal taxes, and no separate trust tax forms are required by the IRS during your lifetime.
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Re: I Bonds variable rate @ 3.54% in May

Post by HomeStretch »

ustaad9 wrote: Wed Jun 09, 2021 10:05 am Thanks. I clicked on the links in your response and quickly determined that most of the trust options are either not available to me or too complicated to consider. How difficult is it to set up a revocable trust? Do I need a lawyer? Will I be required to file a separate return for that trust? Also, with respect to paper bonds, am I restricted to $5K per SSN or $5K per return? Currently filing MFJ.
Probably best to consult an estate and trust attorney to get advice about a trust and how it fits into/affects your estate planning. My guess is it would be cost prohibitive to set up a trust just to purchase and hold $10k annually in I-Bonds.

$5k paper bonds is per return regardless of your filing status as single or MFJ.
retiringwhen
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Re: I Bonds variable rate @ 3.54% in May

Post by retiringwhen »

BrokerageZelda wrote: Wed Jun 09, 2021 10:26 am
ustaad9 wrote: Wed Jun 09, 2021 10:05 am Thanks. I clicked on the links in your response and quickly determined that most of the trust options are either not available to me or too complicated to consider. How difficult is it to set up a revocable trust? Do I need a lawyer? Will I be required to file a separate return for that trust?
It's possible to DIY a revocable trust with a book that explains how to do it, but you'll be taking the legal consequences of any errors or omissions into your own hands. Someone with a mixed family attempting to protect assets and care for minor children with a trust will have a much more complex trust document (and more complex needs for legal advice) than someone creating a simple trust whose only earthly duty is purchasing $10k of savings bonds per year. If you're not sure, ask a lawyer.

A personal revocable/living trust with yourself as grantor and trustee is taxed as a pass-through entity by the IRS and can use your SSN as its tax ID; any taxes incurred by the trust during your lifetime are treated as your personal taxes, and no separate trust tax forms are required by the IRS during your lifetime.
Any trust created with the primary goal of increasing i-bonds investment space is really the tail wagging the dog. I can't imagine even the cheapest trust setup can justify the small increase in returns that could be expected. Seriously, for $10K a year, you are looking at the very most about $250-$300 extra interest even at the current relatively large delta between i-bonds and a simple Ally HYSA. This spread is not likely to last over the long-term though.


Of course, if you are using trusts for asset protection, estate planning or other purposes, take advantage of the extra space.
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Re: I Bonds variable rate @ 3.54% in May

Post by ustaad9 »

retiringwhen wrote: Wed Jun 09, 2021 10:47 am
BrokerageZelda wrote: Wed Jun 09, 2021 10:26 am
ustaad9 wrote: Wed Jun 09, 2021 10:05 am Thanks. I clicked on the links in your response and quickly determined that most of the trust options are either not available to me or too complicated to consider. How difficult is it to set up a revocable trust? Do I need a lawyer? Will I be required to file a separate return for that trust?
It's possible to DIY a revocable trust with a book that explains how to do it, but you'll be taking the legal consequences of any errors or omissions into your own hands. Someone with a mixed family attempting to protect assets and care for minor children with a trust will have a much more complex trust document (and more complex needs for legal advice) than someone creating a simple trust whose only earthly duty is purchasing $10k of savings bonds per year. If you're not sure, ask a lawyer.

A personal revocable/living trust with yourself as grantor and trustee is taxed as a pass-through entity by the IRS and can use your SSN as its tax ID; any taxes incurred by the trust during your lifetime are treated as your personal taxes, and no separate trust tax forms are required by the IRS during your lifetime.
Any trust created with the primary goal of increasing i-bonds investment space is really the tail wagging the dog. I can't imagine even the cheapest trust setup can justify the small increase in returns that could be expected. Seriously, for $10K a year, you are looking at the very most about $250-$300 extra interest even at the current relatively large delta between i-bonds and a simple Ally HYSA. This spread is not likely to last over the long-term though.


Of course, if you are using trusts for asset protection, estate planning or other purposes, take advantage of the extra space.
Thanks guys for putting this issue in perspective. it is not worth the effort. Just out of curiosity, what is the book that you referenced? I want to learn more about these trusts. You guys are a terrific group. I am going to visit this site on a regular basis.
ustaad9
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Joined: Sat Jul 18, 2020 3:01 pm

Re: I Bonds variable rate @ 3.54% in May

Post by ustaad9 »

BrokerageZelda wrote: Tue Jun 08, 2021 4:19 pm
ustaad9 wrote: Tue Jun 08, 2021 3:04 pm
HomeStretch wrote: Thu May 20, 2021 10:11 am As another data point, spouse/I set up two entity accounts (for two individual trusts) this month and had no issue with the set-up or buying I-Bonds in each account.
Hi, newbie here. My first post on this site. The question I have relates to the annual buying limit for I bonds. How does one set up a trust account to buy additional i bonds over and above the $10K? What steps does the actual process involve? Do I need a EIN no.? What are the federal and state tax implications? Anyone who can share their experience? It would be much appreciated.
A trust is a legal agreement that goes into effect when a trust document is signed and notarized. Many people hire a 'trusts & estates' lawyer to craft trust documents that fulfill their estate planning, asset protection, or other needs; there are also books out there about how to "make your own" trust. Figuring out what kind of trust (if any) is right for you, and how to start one properly, is your responsibility.

For something like a revocable/living trust with yourself as trustee, you do not need to get an EIN and can just use your SSN as the trust's tax ID. While you are alive, any income from the trust is reported under your SSN and is treated as your income by the IRS.

A TreasuryDirect trust account has its own $10k purchase limit, even if it shares a tax ID number with an individual account.

When creating a TreasuryDirect account for a trust, choose "Trust" on the first page of the TreasuryDirect account creation form. Your "Entity Taxpayer Identification Number" is your SSN, and the 'Entity' information for your trust is the same as the 'Entity Account Manager' information. Note that TreasuryDirect has a very specific format for the "Entity Name (Registration)" of a Trust account; be sure to research and understand the correct format before creating a trust account.

Interest on US Treasury securities (including Savings Bonds) is taxed as ordinary income by the IRS (not capital gains), and is exempt from state and local taxation (which is useful if you live in a state with significant state/local income taxes). By default, the income tax on Savings Bond interest is deferred until you cash the bond or on the date of maturity, whichever comes first.
thanks,
BrokerageZelda
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Re: I Bonds variable rate @ 3.54% in May

Post by BrokerageZelda »

ustaad9 wrote: Wed Jun 09, 2021 4:20 pm Thanks guys for putting this issue in perspective. it is not worth the effort. Just out of curiosity, what is the book that you referenced? I want to learn more about these trusts. You guys are a terrific group. I am going to visit this site on a regular basis.
I believe Nolo Press has a book about living trusts, other books about general estate planning might have information about trusts as well.
calwatch
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Re: I Bonds variable rate @ 3.54% in May

Post by calwatch »

If you have Schedule C income it may be easier to justify doing Sole Proprietorship instead. I set it up and promptly forgot the password, but not sure if I want to add to my already deep stack of I Bonds anymore… although I have until October to take advantage of this great rate for six months.
ChiKid24
Posts: 403
Joined: Fri Aug 09, 2019 3:43 pm

Re: I Bonds variable rate @ 3.54% in May

Post by ChiKid24 »

tomsense76 wrote: Tue Jun 08, 2021 4:29 pm
ChiKid24 wrote: Tue Jun 08, 2021 11:01 am
ChiKid24 wrote: Thu May 20, 2021 10:01 am Some words of warning for those that are looking to make their first I Bonds purchase this month. I set up two accounts on the TD website last month, one for me and one for our trust with intention of making my purchases at the end of this month. I went in to access the accounts today as I had heard that the site can be tough to navigate, so figured I would make my purchases now to avoid risking end of month in case there are delays.

Well sure enough, I am locked out of both of my accounts for some reason. I call the TD customer service and they say that I need to print out an Account Authorization form (Form 5444) from their website, have the form signed at my bank by an authorized officer, and then snail mail the form back to Treasury Direct in order to access my account. I explained that my bank doesn't have any physical branch and the lady said I can go to my county court of records and have the form filled out. HUH? Why is this necessary? What year are we in?

Needless to say, I don't think I'll be able to get this all completed and ready to go for a purchase this month. Beyond frustrating. I had heard the horror stories about the clunky website, but this is just plain annoying.
Follow-up post on my experience with TD. I ended up going to my local BofA branch and getting the signature guarantee forms done and mailed the next day. That was Friday May 21. I received an email from TD on May 25 that they received my forms and to allow them sufficient time to review my materials.

Here we are two weeks later and I'm still locked out of my accounts. I'm not sure how long it takes to review a simple signature form that has already been guaranteed by a national bank. I've called TD to inquire and the CX rep says they are reviewing. I asked for the estimate of time and she couldn't give one. I asked if there was someone I could talk to who might have more information and she said there really wasn't. I commented that it's a bit of a black box then, she said yes it is. I asked if I would get some notification when the issue was resolved, she said she wasn't sure.

I read all the posts about the clunky TD website prior to setting up my accounts. I assumed those were just people who might not be very tech savvy. I've never really had any issues setting up online accounts, funding and navigating them. No way would it be an issue for me. But alas, here we are. Though in fairness, my gripe is more with the customer service aspect since I have no clue what is happening with my accounts, why it's taking so long, when it will be complete, or if I'll even know it's resolved. Till then, I'll just keep checking the account and hoping I can get a purchase in before the end of the month.
Interesting. Had to also do this form last year (also went to local BoA branch). Form arrived there Nov 9. Account was unlocked Nov 19. So it took nearly 2 full work weeks to resolve from receipt of the form

Should add they sent an email when it was unlocked. Might be worth going through spam just in case it got filtered
Got my email today and both my personal and trust accounts were unlocked. Woo hoo! Here is the message I received this morning which provides their rationale for locking them in the first place:

"Hello, We value our customer’s privacy and financial holdings and will do what we can to protect them. Because your account shared some characteristics of accounts that were created for identity theft, Risk Management had placed a lock on your account as a precautionary measure.
After further investigation, the lock has been removed. We apologize for any inconvenience that this has caused."
User avatar
anon_investor
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Re: I Bonds variable rate @ 3.54% in May

Post by anon_investor »

ChiKid24 wrote: Thu Jun 10, 2021 1:39 pm
tomsense76 wrote: Tue Jun 08, 2021 4:29 pm
ChiKid24 wrote: Tue Jun 08, 2021 11:01 am
ChiKid24 wrote: Thu May 20, 2021 10:01 am Some words of warning for those that are looking to make their first I Bonds purchase this month. I set up two accounts on the TD website last month, one for me and one for our trust with intention of making my purchases at the end of this month. I went in to access the accounts today as I had heard that the site can be tough to navigate, so figured I would make my purchases now to avoid risking end of month in case there are delays.

Well sure enough, I am locked out of both of my accounts for some reason. I call the TD customer service and they say that I need to print out an Account Authorization form (Form 5444) from their website, have the form signed at my bank by an authorized officer, and then snail mail the form back to Treasury Direct in order to access my account. I explained that my bank doesn't have any physical branch and the lady said I can go to my county court of records and have the form filled out. HUH? Why is this necessary? What year are we in?

Needless to say, I don't think I'll be able to get this all completed and ready to go for a purchase this month. Beyond frustrating. I had heard the horror stories about the clunky website, but this is just plain annoying.
Follow-up post on my experience with TD. I ended up going to my local BofA branch and getting the signature guarantee forms done and mailed the next day. That was Friday May 21. I received an email from TD on May 25 that they received my forms and to allow them sufficient time to review my materials.

Here we are two weeks later and I'm still locked out of my accounts. I'm not sure how long it takes to review a simple signature form that has already been guaranteed by a national bank. I've called TD to inquire and the CX rep says they are reviewing. I asked for the estimate of time and she couldn't give one. I asked if there was someone I could talk to who might have more information and she said there really wasn't. I commented that it's a bit of a black box then, she said yes it is. I asked if I would get some notification when the issue was resolved, she said she wasn't sure.

I read all the posts about the clunky TD website prior to setting up my accounts. I assumed those were just people who might not be very tech savvy. I've never really had any issues setting up online accounts, funding and navigating them. No way would it be an issue for me. But alas, here we are. Though in fairness, my gripe is more with the customer service aspect since I have no clue what is happening with my accounts, why it's taking so long, when it will be complete, or if I'll even know it's resolved. Till then, I'll just keep checking the account and hoping I can get a purchase in before the end of the month.
Interesting. Had to also do this form last year (also went to local BoA branch). Form arrived there Nov 9. Account was unlocked Nov 19. So it took nearly 2 full work weeks to resolve from receipt of the form

Should add they sent an email when it was unlocked. Might be worth going through spam just in case it got filtered
Got my email today and both my personal and trust accounts were unlocked. Woo hoo! Here is the message I received this morning which provides their rationale for locking them in the first place:

"Hello, We value our customer’s privacy and financial holdings and will do what we can to protect them. Because your account shared some characteristics of accounts that were created for identity theft, Risk Management had placed a lock on your account as a precautionary measure.
After further investigation, the lock has been removed. We apologize for any inconvenience that this has caused."
Interesting, did you use the same email/phone/addresss on both accounts? Congrats! :sharebeer Now you can get some I Bonds this month.
ChiKid24
Posts: 403
Joined: Fri Aug 09, 2019 3:43 pm

Re: I Bonds variable rate @ 3.54% in May

Post by ChiKid24 »

anon_investor wrote: Thu Jun 10, 2021 1:43 pm
ChiKid24 wrote: Thu Jun 10, 2021 1:39 pm
tomsense76 wrote: Tue Jun 08, 2021 4:29 pm
ChiKid24 wrote: Tue Jun 08, 2021 11:01 am
ChiKid24 wrote: Thu May 20, 2021 10:01 am Some words of warning for those that are looking to make their first I Bonds purchase this month. I set up two accounts on the TD website last month, one for me and one for our trust with intention of making my purchases at the end of this month. I went in to access the accounts today as I had heard that the site can be tough to navigate, so figured I would make my purchases now to avoid risking end of month in case there are delays.

Well sure enough, I am locked out of both of my accounts for some reason. I call the TD customer service and they say that I need to print out an Account Authorization form (Form 5444) from their website, have the form signed at my bank by an authorized officer, and then snail mail the form back to Treasury Direct in order to access my account. I explained that my bank doesn't have any physical branch and the lady said I can go to my county court of records and have the form filled out. HUH? Why is this necessary? What year are we in?

Needless to say, I don't think I'll be able to get this all completed and ready to go for a purchase this month. Beyond frustrating. I had heard the horror stories about the clunky website, but this is just plain annoying.
Follow-up post on my experience with TD. I ended up going to my local BofA branch and getting the signature guarantee forms done and mailed the next day. That was Friday May 21. I received an email from TD on May 25 that they received my forms and to allow them sufficient time to review my materials.

Here we are two weeks later and I'm still locked out of my accounts. I'm not sure how long it takes to review a simple signature form that has already been guaranteed by a national bank. I've called TD to inquire and the CX rep says they are reviewing. I asked for the estimate of time and she couldn't give one. I asked if there was someone I could talk to who might have more information and she said there really wasn't. I commented that it's a bit of a black box then, she said yes it is. I asked if I would get some notification when the issue was resolved, she said she wasn't sure.

I read all the posts about the clunky TD website prior to setting up my accounts. I assumed those were just people who might not be very tech savvy. I've never really had any issues setting up online accounts, funding and navigating them. No way would it be an issue for me. But alas, here we are. Though in fairness, my gripe is more with the customer service aspect since I have no clue what is happening with my accounts, why it's taking so long, when it will be complete, or if I'll even know it's resolved. Till then, I'll just keep checking the account and hoping I can get a purchase in before the end of the month.
Interesting. Had to also do this form last year (also went to local BoA branch). Form arrived there Nov 9. Account was unlocked Nov 19. So it took nearly 2 full work weeks to resolve from receipt of the form

Should add they sent an email when it was unlocked. Might be worth going through spam just in case it got filtered
Got my email today and both my personal and trust accounts were unlocked. Woo hoo! Here is the message I received this morning which provides their rationale for locking them in the first place:

"Hello, We value our customer’s privacy and financial holdings and will do what we can to protect them. Because your account shared some characteristics of accounts that were created for identity theft, Risk Management had placed a lock on your account as a precautionary measure.
After further investigation, the lock has been removed. We apologize for any inconvenience that this has caused."
Interesting, did you use the same email/phone/addresss on both accounts? Congrats! :sharebeer Now you can get some I Bonds this month.
Everything was the same. I actually had no trouble creating the accounts and they were open for a few weeks before getting locked and requiring the signature guarantee. Nice to have it resolved.
User avatar
anon_investor
Posts: 6820
Joined: Mon Jun 03, 2019 1:43 pm

Re: I Bonds variable rate @ 3.54% in May

Post by anon_investor »

ChiKid24 wrote: Thu Jun 10, 2021 2:38 pm
anon_investor wrote: Thu Jun 10, 2021 1:43 pm
ChiKid24 wrote: Thu Jun 10, 2021 1:39 pm
tomsense76 wrote: Tue Jun 08, 2021 4:29 pm
ChiKid24 wrote: Tue Jun 08, 2021 11:01 am

Follow-up post on my experience with TD. I ended up going to my local BofA branch and getting the signature guarantee forms done and mailed the next day. That was Friday May 21. I received an email from TD on May 25 that they received my forms and to allow them sufficient time to review my materials.

Here we are two weeks later and I'm still locked out of my accounts. I'm not sure how long it takes to review a simple signature form that has already been guaranteed by a national bank. I've called TD to inquire and the CX rep says they are reviewing. I asked for the estimate of time and she couldn't give one. I asked if there was someone I could talk to who might have more information and she said there really wasn't. I commented that it's a bit of a black box then, she said yes it is. I asked if I would get some notification when the issue was resolved, she said she wasn't sure.

I read all the posts about the clunky TD website prior to setting up my accounts. I assumed those were just people who might not be very tech savvy. I've never really had any issues setting up online accounts, funding and navigating them. No way would it be an issue for me. But alas, here we are. Though in fairness, my gripe is more with the customer service aspect since I have no clue what is happening with my accounts, why it's taking so long, when it will be complete, or if I'll even know it's resolved. Till then, I'll just keep checking the account and hoping I can get a purchase in before the end of the month.
Interesting. Had to also do this form last year (also went to local BoA branch). Form arrived there Nov 9. Account was unlocked Nov 19. So it took nearly 2 full work weeks to resolve from receipt of the form

Should add they sent an email when it was unlocked. Might be worth going through spam just in case it got filtered
Got my email today and both my personal and trust accounts were unlocked. Woo hoo! Here is the message I received this morning which provides their rationale for locking them in the first place:

"Hello, We value our customer’s privacy and financial holdings and will do what we can to protect them. Because your account shared some characteristics of accounts that were created for identity theft, Risk Management had placed a lock on your account as a precautionary measure.
After further investigation, the lock has been removed. We apologize for any inconvenience that this has caused."
Interesting, did you use the same email/phone/addresss on both accounts? Congrats! :sharebeer Now you can get some I Bonds this month.
Everything was the same. I actually had no trouble creating the accounts and they were open for a few weeks before getting locked and requiring the signature guarantee. Nice to have it resolved.
My spouse and my TD accounts were both locked within weeks of initially opening (in 2019/2020), but luckily we were both able to unlock over the phone. I am pretty sure we both got locked after we added additional bank accounts (this was back when you could still add them online). So no idea what the criteria is for requiring a signature gurantee to unlock, luck I guess. :confused
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