I Bonds’s new variable rate will rise to 9.62% with the May reset

[yankees60]

https://tipswatch.com/2022/04/12/i-bond ... may-reset/

I Bonds’s new variable rate will rise to 9.62% with the May reset

[GT]

https://tipswatch.com/2022/04/12/i-bond ... may-reset/

I Bonds’s new variable rate will rise to 9.62% with the May reset

Thanks Vnatale!!

[barrett]

https://tipswatch.com/2022/04/12/i-bond ... may-reset/

I Bonds’s new variable rate will rise to 9.62% with the May reset

Thanks Vnatale!!

Yes, thanks for posting that, Vincent! And I agree with what kbg wrote in the other thread that this is not good at a macro level because it means that inflation is out of control. That month-over-month rise in the CPI-U translates to something like 16% inflation. True, it's only one month of data and could be affected a lot by gas prices, but, damn that's high.

I do think that we (meaning my wife an I) will figure out a way to get another $10,000 of I-Bonds before the end of April. I have to keep reminding myself that all they are doing is more or less keeping up with inflation BEFORE taxes, but there is no other option to get that kind of safe return elsewhere.

[jhogue]

I-bonds = TINA for Cash!

[barrett]

Just bought my 2022 allotment of I-Bonds today. I wanted to lock in the 7.12% for six months before the annualized rate jumps to 9.62% on 5/1/22. Will let you all know in a few years if that was a good move.

Took me maybe five minutes to get this all done on Treasury Direct. I still don't like having these bonds in electronic form just because it's one more layer that my wife has to figure out if I kick. Also, not sure if this is a long-term hold or just a good place to park $10,000 until 7/1/23.

[jhogue]

Just bought my 2022 allotment of I-Bonds today. I wanted to lock in the 7.12% for six months before the annualized rate jumps to 9.62% on 5/1/22. Will let you all know in a few years if that was a good move.

Took me maybe five minutes to get this all done on Treasury Direct. I still don't like having these bonds in electronic form just because it's one more layer that my wife has to figure out if I kick. Also, not sure if this is a long-term hold or just a good place to park $10,000 until 7/1/23.

So, regardless of what happens, I-bonds have you covered.

[jhogue]

FYI, US Savings bonds investors:

I logged into my TreasuryDirect account this morning, ordered my pre-May 1 quota of I-bonds, hit the submit button, and was informed (after several minutes wait) that TreasuryDirect was "unavailable" and I should try again later.

Speculation on a thread over at bogelheads is that TreasuryDirect's server has been overwhelmed by the last-minute rush to lock-in the combined 7.12% / 9.62% guaranteed interest rate before the May 1 rate re-set.

I logged in again later in the day and this time TreasuryDirect confirmed my order.

I have recorded my dissatisfaction by marking "Poor" on the website exit survey and intend to follow up with an email to that effect. Can you hear me, Janet Yellin?

[ochotona]

US Treasury sent me an email saying they expect conversion of paper I-Bonds to digital to take SIXTEEN WEEKS!

[joypog]

US Treasury sent me an email saying they expect conversion of paper I-Bonds to digital to take SIXTEEN WEEKS!

Yeah...that's why I'm not interested the whole tax return in paper I-bonds gimmick. Seems like a total PITA.

I know its by design...but I bonds aren't THAT awesome ar they?

[jhogue]

I don't convert my paper I-bonds to digital. I keep them in my local bank safe deposit box, along with some gold. A bit of physical diversification is never a bad thing.

[barrett]

I don't convert my paper I-bonds to digital. I keep them in my local bank safe deposit box, along with some gold. A bit of physical diversification is never a bad thing.

I do the same as jhogue. Right now, less than 20% of our US Savings Bonds (still redeeming some old EEs) are in electronic form. We have a fair bit in paper I-Bonds from 1999 to 2011 and no plans to convert any of those. All are stored in a safe deposit box with a list of serial numbers (dates, values, etc.) in a couple of different places.

[jhogue]

I don't convert my paper I-bonds to digital. I keep them in my local bank safe deposit box, along with some gold. A bit of physical diversification is never a bad thing.

I do the same as jhogue. Right now, less than 20% of our US Savings Bonds (still redeeming some old EEs) are in electronic form. We have a fair bit in paper I-Bonds from 1999 to 2011 and no plans to convert any of those. All are stored in a safe deposit box with a list of serial numbers (dates, values, etc.) in a couple of different places.

I also keep a list of my I-bonds with serial numbers/dates/values. One way to ensure your heirs can find your I-bonds is to share that list with your local banker, who can help you or your heirs fill out the paperwork to redeem those paper I-bonds.

[jhogue]

"As the cost of living soars, one lawmaker is urging the Treasury Department to remove the barriers to buying Series I bonds.
Rep. Abigail Spanberger, D-Va., on Thursday voiced concerns about "red tape and outdated systems" that may be preventing investors from buying the inflation-protected and nearly risk-free asset."

See article at:

https://www.msn.com/en-us/money/markets ... ar-AAZzIUn

[GT]

"As the cost of living soars, one lawmaker is urging the Treasury Department to remove the barriers to buying Series I bonds.
Rep. Abigail Spanberger, D-Va., on Thursday voiced concerns about "red tape and outdated systems" that may be preventing investors from buying the inflation-protected and nearly risk-free asset."

See article at:

https://www.msn.com/en-us/money/markets ... ar-AAZzIUn

I would agree with the red tape and outdated systems- TD reported my wife's address could not be verified and she would need to work with a bank to complete a medallion cert form. Our Credit Union would not complete the medallion form as the form is used for the selling of treasuries not mailing address verifications. The TD call center is backed up for hours so no luck in pleading my case.

[jhogue]

@GT:
I am sorry to hear of your difficulties with the Treasury Direct system.

However, I would not rate your credit union very highly either, based upon their lack of customer service in this instance.

If it were me, I would schedule an appointment with your branch manager, inform that person of your difficulty, and challenge them to either shape up or you and your account will move to another firm (and there are many) that will handle the paperwork associated with savings bonds issued by the United States Treasury.

[GT]

@GT:
I am sorry to hear of your difficulties with the Treasury Direct system.

However, I would not rate your credit union very highly either, based upon their lack of customer service in this instance.

If it were me, I would schedule an appointment with your branch manager, inform that person of your difficulty, and challenge them to either shape up or you and your account will move to another firm (and there are many) that will handle the paperwork associated with savings bonds issued by the United States Treasury.

My CU has been very helpful over the years (no PMI on my home loan ect..) so I will give them some understanding. I have read that the TD folks have relaxed their medallion cert; form they provide for signature verification requires the medallion seal or other form of seal not clearly stated - notary seal is not allowed. I have worked with my CU branch manager so we will see how this next round of forms verification goes...

[jhogue]

@GT:
See Jason Zweig's article on I-bonds in this weekend's Wall Street Journal, "An Investment That Still Hosts the Mark."

Zweig, who is a proponent of I bonds, says that Treasury Direct is now accepting certification by notary public.

[Pet Hog]

... Treasury Direct is now accepting certification by notary public.

That would be great. I've been having the same problems as GT's wife. The last time I tried to get my identification verified (in April), my credit union, and several big-name banks where I have accounts, refused to stamp the form for me. And TD had already relaxed the medallion stamp requirement. So complicated! Notary would be so much easier.

[barrett]

With the CPI data out this morning, TipsWatch has the new variable rate for 11/1/22 to 4/30/23 at 6.48%.

Link is here:

https://tipswatch.com/category/i-bond/

Thinking I may add to our gift box positions before 10/31 to get the current 9.62% for six months. And then, obviously, 6.48% for another six months after that (with the three-month delay penalty before any of this kicks in).

[barrett]

Forgot to mention that the SS COLA is up 8.7% according to the same TipsWatch link.

[jhogue]

With the CPI data out this morning, TipsWatch has the new variable rate for 11/1/22 to 4/30/23 at 6.48%.

Link is here:

https://tipswatch.com/category/i-bond/

Thinking I may add to our gift box positions before 10/31 to get the current 9.62% for six months. And then, obviously, 6.48% for another six months after that (with the three-month delay penalty before any of this kicks in).

Mel Landauer, the Bogleheads expert on all things related to I-bonds, noted just yesterday that there is a glitch in the gift box function that sends out an error message when the user hits "Submit," rather than transfer the intended gift to the investor's gift box. (I have encountered this error message myself.) TreasuryDirect will be unavailable today while Treasury technicians perform maintenance on the website.

https://www.bogleheads.org/forum/viewto ... start=3950

With the 1 November reset date fast approaching, those investors who want the current I-bond interest rate of 9.62%, rather than the next 6 months' variable rate of 6.48%, should stay on top of developments. I anticipate that there is likely to be a mad rush for I-bonds up to the very last minute.