iBonds / TreasuryDirect

Discussion of the Cash portion of the Permanent Portfolio

Moderator: Global Moderator

Post Reply
User avatar
Dieter
Executive Member
Executive Member
Posts: 664
Joined: Sat Sep 01, 2012 10:51 am

iBonds / TreasuryDirect

Post by Dieter »

So, I logged into TreasuryDirect Sunday (5/7) — uses the new login:
* Are sent a one-time passcode (OTP) every time
(can’t register your computer)

* No more using on-screen keyboard

* Password now case sensitive, based on the capitalization used for first login


I didn’t do any changes (I’m looking to “rollover” some iBonds for the higher fixed rate) —

* My older iBonds still on the higher rate

* Gonna wait for three months at the lower rate for iBonds under 5yrs old
User avatar
dualstow
Executive Member
Executive Member
Posts: 14475
Joined: Wed Oct 27, 2010 10:18 am
Location: synagogue of Satan
Contact:

Re: iBonds / TreasuryDirect

Post by dualstow »

and in those 3 months, the website will have changed again. O0

I appreciate the updates. I have to login soon. It’s been awhile.
Did your WSJ password get hacked recently?
barrett
Executive Member
Executive Member
Posts: 1999
Joined: Sat Jan 04, 2014 2:54 pm

Re: iBonds / TreasuryDirect

Post by barrett »

Thanks for posting this Dieter. Reminded me to login to check out the new & enhanced site.

Is it just me or has the site overall gotten even worse recently? There used to be a section that listed the fixed rates of I-Bonds all the way back to inception. It looks like one can only go back to 2018 now. In my case, I have paper printouts with fixed rates that I have written next to each serial number (for all my paper bonds purchased long ago).

Still clunky after all these years.
User avatar
Dieter
Executive Member
Executive Member
Posts: 664
Joined: Sat Sep 01, 2012 10:51 am

Re: iBonds / TreasuryDirect

Post by Dieter »

And a video on the new iBond rate and when to maybe “roll over” 0.00 fixed rate iBonds to buy into the new 0.90 fixed rate

https://youtu.be/7ooIgdycrfw
User avatar
Dieter
Executive Member
Executive Member
Posts: 664
Joined: Sat Sep 01, 2012 10:51 am

Re: iBonds / TreasuryDirect

Post by Dieter »

I just sold some 0% fixed rate I-Bonds and bought new ones at 1.3% (Fixed rate at 1.3% through the end of April)

Per one YouTube video I say, the fixed rate likely to be slightly lower May 1

And, figued 1.3% is better than my 0%, even with the 3 month interest penalty for selling before 5 years are up
barrett
Executive Member
Executive Member
Posts: 1999
Joined: Sat Jan 04, 2014 2:54 pm

Re: iBonds / TreasuryDirect

Post by barrett »

Dieter wrote: Mon Apr 08, 2024 10:34 pm I just sold some 0% fixed rate I-Bonds and bought new ones at 1.3% (Fixed rate at 1.3% through the end of April)

Per one YouTube video I say, the fixed rate likely to be slightly lower May 1

And, figured 1.3% is better than my 0%, even with the 3 month interest penalty for selling before 5 years are up
Sounds like a good move, especially if you plan to hold the 1.3% bonds for the long term. I've thought about doing the same but I am a bit obsessed with maxing out Roth conversions both this year and next. Just don't want the extra interest income from an I-bond sale to cut into what I can Roth convert and still stay within the 12% bracket. That bracket may or may not be going away after 2025.

Also, the I-bonds that I bought in 2021 and 2022 (primarily for the high variable rate) are my second tier of money to spend from for living expenses, so they'll likely be redeemed in early 2026 anyway.

No great insight here as I am really just writing this out to clarify my own thinking.

We'll know after tomorrow's (4/10) inflation announcement for March what the new variable rate will be from 5/1/24 to 10/31/24.
barrett
Executive Member
Executive Member
Posts: 1999
Joined: Sat Jan 04, 2014 2:54 pm

Re: iBonds / TreasuryDirect

Post by barrett »

The new variable rate on I-bonds issued 5/1/24 to 10/31/24 is 2.96%. Article by David Enna is here:

https://tipswatch.com/2024/04/10/march- ... e-at-2-96/

He is also forecasting a fixed rate of 1.2% or 1.3%. So a 4.26% composite rate more or less.
User avatar
Dieter
Executive Member
Executive Member
Posts: 664
Joined: Sat Sep 01, 2012 10:51 am

Re: iBonds / TreasuryDirect

Post by Dieter »

And the final 1 May 2024 tally:

* 1.3% Fixed rate

* 4.28% composite rate

So, it worked out to buy in April

I'll likely sell more of my 0% fixed rate I-Bond (2.98%) and put into T-Bills / Treasury Money Market for now (~5.3%)

Then put back into I-Bonds a bit later -- some likely around November / some next year, depending on what rates do by then

I just don't like 0% Fixed Rate when I can move to 1.3% over time
boglerdude
Executive Member
Executive Member
Posts: 1342
Joined: Wed Aug 10, 2016 1:40 am
Contact:

Re: iBonds / TreasuryDirect

Post by boglerdude »

4.28%. . .considering what they did to M2. . .and ibonds are supposed to be for the little guy. Meanwhile banks harvesting 5% on the cash they got handed in '09. something something social contract

What happens if the Fed stops paying them

https://fred.stlouisfed.org/series/M2SL
Post Reply