Current rate for a new ibond is 3.94% +1.3% fixed + the composite rate kicker = 5.27%. Plus, in my state, the state tax exemption is worth about 0.25%, for a total of 5.52% That's not bad for a no-risk investment.
You beat me to it. I was just coming on the site to post the same thing. I'll admit my current I Bonds aren't doing too well, so I'm thinking of looking through what I have to see which ones have 0% fixed rate, redeem them in January and purchase new ones. I realize I'll have to pay taxes, but I have backup withholding on my TD account so that should help tax time in 2025. Right now, it's just a thought, still have to think on it a while longer.
@@lloydelliot7416 True. There are other options that have similar yield. Money Market is about 5 - 5.5% right now and you can pull it out whenever you want. I heard about some 6.5% CD's, too,but haven't seen them myself.
I-Bonds are part of our retirement strategy -esp with the new rates fixed at 1.30% We're buying I-Bonds for an inflation hedge and a sequence of returns risk. Note we're also purchasing T-Bills / ladders. Retirement 7-10 years away. You can purchase an unlimited for your giftbox in your spouses name (or kids) and distribute the i-bonds 10k/yr. While in your giftbox the i-bonds collect interest based on current rates.
@@StackingBenjamins I-Bonds are NOT a short term risk hedge -- besides what risks do you think your hedging (market, inflation, interest, geopolitical, etc...)
If I bought a bunch as gifts for my kids (still in my giftbox), am I limited to how much I can deliver to them in a calendar year? Are there limits to what you can cash out in a calendar year after the initial year of holding them?
Did these guys look at I-bond rates at all before making this video? Combined rate now is 5.27% with a 1.3% fixed portion. Seems comparable to 6-12 mo CDs to me and beats almost all savings/MM accounts. I agree there’s no reason to keep I bonds at 3-4% with no fixed interest, so I am redeeming some to buy at the new rate before the end of 2023.
It appears it is going to take around six weeks to sell our bonds through Treasury Direct. Sent in the paperwork two weeks sgo , got an email that said expect it to take four weeks to complete the sale.
Get your figures right, they're not paying 3% now they're paying 3.94. If your going to have a topic like this then get familiar with the exact rates - poor job
Guessing on the current rate? Seriously? It takes 30 seconds to Google it and get the result. Lazy. Also not all bonds before 2021 was at zero. In fact 33 periods between 1998 and 2020 had a fixed rate vs only 12 periods with zero. Until 2008 it was always over 1% with some as high as 3.4% and 9 at 2%+. Don’t post a video unless you know the topic.
![Bond Market Update: Why Bonds Are Back [2023]](/img/n.gif)
Current rate for a new ibond is 3.94% +1.3% fixed + the composite rate kicker = 5.27%. Plus, in my state, the state tax exemption is worth about 0.25%, for a total of 5.52% That's not bad for a no-risk investment.
You beat me to it. I was just coming on the site to post the same thing. I'll admit my current I Bonds aren't doing too well, so I'm thinking of looking through what I have to see which ones have 0% fixed rate, redeem them in January and purchase new ones. I realize I'll have to pay taxes, but I have backup withholding on my TD account so that should help tax time in 2025. Right now, it's just a thought, still have to think on it a while longer.
@@lloydelliot7416 True. There are other options that have similar yield. Money Market is about 5 - 5.5% right now and you can pull it out whenever you want. I heard about some 6.5% CD's, too,but haven't seen them myself.
I-Bonds are part of our retirement strategy -esp with the new rates fixed at 1.30% We're buying I-Bonds for an inflation hedge and a sequence of returns risk. Note we're also purchasing T-Bills / ladders. Retirement 7-10 years away. You can purchase an unlimited for your giftbox in your spouses name (or kids) and distribute the i-bonds 10k/yr. While in your giftbox the i-bonds collect interest based on current rates.
I bonds as a short term risk hedge? Fantastic.
@@StackingBenjamins I-Bonds are NOT a short term risk hedge -- besides what risks do you think your hedging (market, inflation, interest, geopolitical, etc...)
I-bonds are not taxed at the state or local level and there are even ways to avoid federal taxes on the interest earned such as paying for tuition.
If I bought a bunch as gifts for my kids (still in my giftbox), am I limited to how much I can deliver to them in a calendar year? Are there limits to what you can cash out in a calendar year after the initial year of holding them?
Did these guys look at I-bond rates at all before making this video? Combined rate now is 5.27% with a 1.3% fixed portion. Seems comparable to 6-12 mo CDs to me and beats almost all savings/MM accounts. I agree there’s no reason to keep I bonds at 3-4% with no fixed interest, so I am redeeming some to buy at the new rate before the end of 2023.
Actually right now at 3.38% with a 0.4 fixed. Not sure where you're getting those rates.
@@Anthony-xi3cb directly from Treasury Direct starting November 2023
I believe the current fixed rate is 1.3% for I bonds!@@Anthony-xi3cb
It appears it is going to take around six weeks to sell our bonds through Treasury
Direct. Sent in the paperwork two weeks sgo , got an email that said expect it to take four weeks to complete the sale.
Why not buy tbills?
We do both for different reasons
bonds purchased in 2021 DID NOT have a base rate of 0.40%, it was 0.00% fixed rate. get it right.
Get your figures right, they're not paying 3% now they're paying 3.94. If your going to have a topic like this then get familiar with the exact rates - poor job
Guessing on the current rate? Seriously? It takes 30 seconds to Google it and get the result. Lazy. Also not all bonds before 2021 was at zero. In fact 33 periods between 1998 and 2020 had a fixed rate vs only 12 periods with zero. Until 2008 it was always over 1% with some as high as 3.4% and 9 at 2%+. Don’t post a video unless you know the topic.
Kinda shoddy information
So Lame!