Talk of The Villages Florida
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Talk of The Villages Florida (https://www.talkofthevillages.com/forums/)
-   Investment Talk (https://www.talkofthevillages.com/forums/investment-talk-158/)
-   -   I Bonds (https://www.talkofthevillages.com/forums/investment-talk-158/i-bonds-337316/)

Battlebasset 12-11-2022 01:40 PM
Quote:
Originally Posted by Caymus (Post 2165319)
The OP is "researching it him/herself. This is part of the research.

Question, are you related to a poster who has trouble making par?
Agree! I never cease to be amazed at people that use this forum to criticize people that ask legitimate questions. I have learned alot about the Villages and other topics by reading these forums, and I contribute where I think I have something to offer. If you think a person's post is "dumb", just ignore it and move on to something else.

pruzicka 12-11-2022 02:05 PM
Quote:
Originally Posted by rmd2 (Post 2164888)
Does anyone know the answer to this question?
If I buy a US Treasury I Bond will the interest rate ever vary during the term I have the Bond? I Bonds are made up of a fixed interest rate and a variable interest rate based on inflation. If I already have an I Bond and the inflation goes down will the interest rate on the I Bond I already have also go down or does it stay the same for the full term of the bond?
Also are there any costs like buy, sell or manage etc associated with having I Bonds?
I bonds have an interest rate of 6.89% until April 2023, then they change according to the inflation rate. Keep in mind they can not be redeemed for 1yr after purchase and if you redeem it before 5yrs, you will loose the last 3 months of interest. I would suggest you read about it at Home — TreasuryDirect Everything you want to know is there and you can start an account, link it to your bank and buy if you wish.

gldfin 12-11-2022 04:41 PM
Ibond rates bs Tips
 
Right now I prefer Tips over ibonds. Both pay a fixed rate plus inflation however the fixed rate on I bonds is very small and you can get a fixed rate of around 1.5 percent on TIps meaning you have a 1.5 percent yield ( real rate) above the inflation rate. I have some I bonds purchased in 2002 which have a fixed rate of 3%, so when new bonds were earning over 9 in the past year the 2002 bonds were earning over 12 percent. With I bonds you can choose to pay taxes annually or when you sell them.

rmd2 12-11-2022 07:59 PM
Quote:
Originally Posted by rayschic (Post 2164943)
Yes, the interest rate will go up or down on a bond you previously purchased.
Thanks so much for the information. This is not anything I would want to invest in. I like CDs with a fixed rate and a fixed period.

rmd2 12-11-2022 08:01 PM
Quote:
Originally Posted by rayschic (Post 2165025)
I bonds interest rates — TreasuryDirect

Hope this link works
It’s a link to a chart that shows what the bonds rates have been for all bonds and how they have changed over the years

Yes, I bought bonds a few months ago at 9.62% and THOSE bonds are now at 6.48 % (I made a slight mistake on my first response)
New bonds issued between now and April of 2023 are at 6.89%
All bonds get a new rate every six months. Sometimes up, sometimes down and sometimes remain the same.
Check the treasury direct website for the chart.
May 2022 was the highest rate on the chart. All bonds were getting between 9-13 %
November 2022, the rates changed and all bonds are now getting 6.48%—10.2%
Thanks, this is the information I needed.

rmd2 12-11-2022 08:04 PM
Quote:
Originally Posted by Fredman (Post 2165266)
All bonds that you own
Thank you.

rmd2 12-11-2022 09:12 PM
Quote:
Originally Posted by Battlebasset (Post 2165438)
Agree! I never cease to be amazed at people that use this forum to criticize people that ask legitimate questions. I have learned alot about the Villages and other topics by reading these forums, and I contribute where I think I have something to offer. If you think a person's post is "dumb", just ignore it and move on to something else.
Thanks to ALL who replied with helpful information. I did do my "due diligence" and researched the Treasury Website on this subject but I did not see anything written on the subject of the 6th month rate changes affecting PREVIOUSLY OWNED I Bonds. So I am very happy to get the information here from all the nice people who were kind enough to take the time to tell me about this subject.

Eg_cruz 12-12-2022 06:23 AM
Quote:
Originally Posted by rmd2 (Post 2164896)
I don't care about mutual Funds, taxable income etc.
I only want to know if the current 6.85% on I Bonds will be good for the entire 30 years of the bond or does the Bond I currently have at that rate change at any time during the 30 years when the inflation rate goes down?
No, it is not a straight fix for 30 yrs.

Eg_cruz 12-12-2022 06:26 AM
Quote:
Originally Posted by rmd2 (Post 2164888)
Does anyone know the answer to this question?
If I buy a US Treasury I Bond will the interest rate ever vary during the term I have the Bond? I Bonds are made up of a fixed interest rate and a variable interest rate based on inflation. If I already have an I Bond and the inflation goes down will the interest rate on the I Bond I already have also go down or does it stay the same for the full term of the bond?
Also are there any costs like buy, sell or manage etc associated with having I Bonds?
As the rates change you can sell out. Rule is have to keep for 1 yr, yr 2-5 you can sell with a 3 month interest fee to close, after the 5th yr you can close with no fee.


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