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Treasurydirect Interest Rate And Issue Date

bbq
  |     |   14 posts since 2018

I just checked my series I savings bond account, the bond I purchased in May has 6.48% interest rate while the one in last December has 9.62%. Can TreasuryDirect make mistake? I tried to email/call them but they are too busy. Does it happen to anyone else?

Another question is why does the issue date always push back to the 1st of the month?

One more question, can we get a detailed statement?  All I see is the total amount you have in the account.

  Post an answer
3


Answers
blazer9
  |     |   228 posts since 2019
You Missed the in-depth free info that so many people tirelessly invested their time posting?
Now you,ll need the search feature unless someone is willing all over again.
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Choice
  |     |   937 posts since 2020
Agree with Blazer but most importantly why is anyone asking after INVESTING? 8 posts since 2018 really? Read more!
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glasses
  |     |   21 posts since 2019
There are several very good informational videos on YouTube by Diamond Nest Egg. Well worth spending a few minutes viewing so that you can fully understand the mechanics of I bonds.
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IGR
  |     |   580 posts since 2020
Relax, people.
There's nothing wrong asking the question and trying to understand.
I'm sure all us smart can explain the issue date, the statement and the fact that next month 9.62% will disappear for good.
Marvel how Treasury managed to design such Complex "Fixed Income" instrument out of set of few very basic rules.
Could any of us, YouTube or any other pundits have explanation to phenomena that 9.62% will never happen but 6.48% actually will?...according to TD as it reports of November 2022!
Could we then explain the phenomena that Bonds Purchased in April 2022 and May 2022 have Identical values as of November 2022?
And after we done that...could we explain how come TD reports that as of March 2023 Bonds Purchased in April 2022 will have LOWER Value than Bonds Purchased in May 2022?
And after we done that...could we explain how come TD reports that as of April 2023 Bonds Purchased in April 2022 will have HIGHER Value than Bonds Purchased in May 2022?

And after we done with all the explanations and mocking...
Could we suggest comprehensive Purchase/Redemption strategy?
Because I cant, nor matter how much effort and comprehension I invest.
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CDsuckers
  |     |   70 posts since 2022
Buy 10K a year, every year regardless of the current inflation rate.
After 5 years, sell them if you need the money and don't have funds available elsewhere.
Or, is that too complicated for you IGR?
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IGR
  |     |   580 posts since 2020
Funniest part, you really believe what you say...actually it is sad.
Please, do yourself a favor - Suck CD.
After you done with that, you could do following to enlighten this forum with your insightfulness.
If that is not too complicated for you CDsucker?
1. Inform this forum of the best ever I-Bond Yield, regardless of years.
2. Inform this forum of the best I-Bond Yield over 5 years Redemption Period, regardless of the current inflation rate.
After that, in case if your noddle is not fully cooked yet...
...Tell us, which exact 5 years Redemption Period as "After 5 years, sell them if you need the money and don't have funds available elsewhere" produced whooping 1.38% Annual Return, and remind us what was then the rate of the effective inflation.

Then we'll continue, at the level of the intelligence this forum actually deserves.
Or, is that too complicated for you troll?
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CDsuckers
  |     |   70 posts since 2022
As usual, you're kind of missing the point.
The whole point of iBonds is to preserve purchasing power.
Even a fixed rate of 0% does that.
The best ever iBond yield is irrelevant.
The best iBond yield over 5 years is irrelevant.
I don't know where you came-up with the 1.38% annual return.
And, it's irrelevant.
Right now, TIPS have a better yield than iBonds.
But you have to hold them to maturity to guarantee preservation of principal.
iBonds give you the flexibility of cashing them in after 5 years without a penatly.
Personally, I just use them as a rainy day fund for unexpected expenses.
Social Security covers my recurring expenses.
My RMD covers car and house maintenance expenses.
My HSA covers medical expenses not covered by medicare.
My iBonds cover totally unexpected and unbudgeted expenses.
Right now, that's around 100K sitting around collecting 0% plus whatever the inflation rate is.
This way I don't have to touch anything else that's tied-up in TIPS bonds.
So if I need a new car, I just cash in some iBonds to cover the expense.
At my age, there's absolutely no reason to take on unnecessary risk.
The point is to live comfortably in retirement with what I've got.
iBonds are just another way of handling that situation.
Incidentally, no one "deserves" anything.
That language makes you sound like some sort of Socialist.
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CuriousDave
  |     |   233 posts since 2018
I Bonds do provide some inflation protection, but not total protection, and especially not for seniors, whose average annual inflation rate is usually a lot higher than the CPI used by the Treasury (caused mostly by a higher proportion of total spending on food, shelter and healthcare). The inflation component of the composite interest rate is still considered interest income for tax purposes and, in the vast majority of cases, will eventually be taxed. That tax eats into what is supposedly your principal protection.
For savers looking to protect larger amounts than the annual I Bond limit of $10,000 (or a few multiples of $10,000 using trusts and other techniques) and who are comfortable holding through maturity, 5-year TIPs make sense right now. They have a much higher purchase limit if using Treasury Direct (and no limit if buying in the secondary market) and they are currently paying around 1.50% on top of inflation versus the 0.40% fixed rate component for new I Bonds. The annual income tax on the semi-annual interest payments on TIPs may also be preferable to the large tax bill that will be due on the lump sum of accumulated interest on I Bonds upon redemption, though of course I Bond owners can elect instead to be taxed on their interest annually.
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lou
  |     |   1,004 posts since 2010
Curious, you also pay phantom income tax on the annual accrued principal in a taxable account.
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CDsuckers
  |     |   70 posts since 2022
There's no phantom income tax if it's in a retirement account.
Even in a taxable one, the whole phantom income tax thing is a bit of a red herring.

If you have a CD that re-invests interest you’re going to get a 1099-INT for that interest.  That’s pretty much the same situation as getting a 1099-OID for TIPS inflation adjustments.

The main difference with TIPS is that if there's deflation you could have paid taxes on stuff that's disappeared.   If that happens you'd get a 1099-OID with a negative amount that can be used as a negative adjustment against other income.

Right now, it comes down to if you'd rather have a 5 year TIPS yielding 1.8% over inflation - or, a 5% CD. 
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lou
  |     |   1,004 posts since 2010
"Social Security covers my recurring expenses"

Wow, you must live in a location with a low cost of living.
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CDsuckers
  |     |   70 posts since 2022
Yup, I live in the South.
South Orange County, California.
Since I owned a business, I was able to give me (CEO) and my wife (CFO) salaries that maximized our benefits.
On top of that we waited until we were 70 to start collecting.
So, we're getting a combined SSI of around 100K.
Even here, it's not much of a struggle to pay your bills with that.
Especially when you grew-up lower middle class.
Back then it was hard to spend money you didn't have (pre-credit card days).
Once that's ingrained in your brain, not spending money is a hard habit to break.
But since I'm married, I have someone more than able to make up for that!
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GreenDream
  |     |   358 posts since 2019
"I'm sure all us smart can explain..."

Look, I make my share of typos and my fingers don't always type out every word I mean to type, so I get that intended words can fail to show up as intended. But when you are going to make comments about how smart you are compared to other people, I suggest you proofread a little harder because such errors undercut the comparisons (IE you don't look too smart when you use sentences like the above quoted or the one lou points out elsewhere or several others that could be brought up as examples). Just saying.
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bbq
  |     |   14 posts since 2018
https://www.treasurydirect.gov/savings-bonds/i-bonds/i-bonds-interest-rates/
has a table about interest rate changes depend on when the bond is issued.

This is something very simple and easy to answer/refer to, but don't understand why people just want to make it such a big deal. People just love to talk.

The I Bond issued in May will get interest rate update every Nov.1 and May 1.

Since the bond is bought in late May, I'd expect the 9.62% interest rate lasts for full 6 months.
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IGR
  |     |   580 posts since 2020
here we go! you found some answers yourself, and I'm not mocking you!
But it is wrong, you can expect what you want, I'm not mocking you, but according to US treasury nobody ever gotten 9.62% return from US bonds purchase.
Soonest you'd want to sell you Bonds to Treasury, in case if "sitting around collecting 0%" doesn't suits you is May 2023. Then US Treasury doesn't "expect", but for certain will pay you back Exactly 6.38% More then you gave to Treasury Exactly One year ago. It is your guess how much Treasury will pay you back in May 2024 or beyond.US treasury makes no such guess.
But, according to our CDsuckers compatriots, it is "irrelevant", since "collecting 0%" is a sound financial goal.
isn't it?
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lou
  |     |   1,004 posts since 2010
"nobody ever gotten"

Before you lecture other people, maybe you should learn how to write.
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GreenDream
  |     |   358 posts since 2019
"But, according to our CDsuckers compatriots, it is "irrelevant", since "collecting 0%" is a sound financial goal."

Clearly reading comprehension isn't something "all us smart can" do. As loathe as I am to defend something C*cksuckers said, he didn't say "collecting 0%" period (as if that was the entirety of what he said), what he actually said was "collecting 0% plus whatever the inflation rate is". Safely preserving principle *is* a sound financial goal, certainly better than not preserving principle by putting money somewhere that doesn't keep up with inflation.
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IGR
  |     |   580 posts since 2020
I am sure all us fools are here to learn how to preserve the capital by the means of "collecting 0%".
Ken should start posting reviews on Best 0% preservation options and rename the blog as VaultMattresses.com
It is comical how quickly it gets disappointedly boring when some speaking with the authority on every subject gets blinded by ignorance and parades himself on SOCIAL media as naked gurus they are. It is satirical when one brags about setting apart "around 100K" while living of "SOCIAL Security". Then there is an irony, the same prophet then explains that it is sound and undisputed strategy to leave around 600K for US Treasury for next about 15 years. My bet is that when prophecy turned to breaks even at the age of around 85 we wont hear about lavish, all "unexpected and unbudgeted expenses" covered afterlife.
Math is unbiased and unforgiving thing, once a bit of it is added, ignorance starts floating.
The acoustics of "sound like some sort of Socialist" is totally "irrelevant" coming from the ear of one who is on the SOCIAL media brags about SOCIAL benefits and mocks his proponent about paying SOCIAL Security taxes in "phantom" Jack Rabbit's currency.
Anyone with proper written English Comprehension dare to explain "pay phantom income tax on the annual accrued principal in a taxable account"?

unregard to the said above.
@GreenDream, I was taught that the meaning of "0" is Absolute.
The unique property of "0" is that it can not be used in conjunction with anything. Once it is used as ""collecting 0%" period" it is not longer a "0" it is "period". and when it is used as "collecting 0% plus whatever the inflation rate is" it becomes "the inflation rate".

In conjunction with the subject of "Treasurydirect Interest Rate And Issue Date", what have we learnt here?....Buoyancy aside? 
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GreenDream
  |     |   358 posts since 2019
Wow, doubling down on reading comprehension failure. There really is nothing more to say to someone who refuses to comprehend what they read, but I'll try anyway. The sentence did not end with "0%" there was the whole "plus" part that you are deliberately ignoring, Is that because you took so long to learn what "zero" means that you never got around to learning what "plus" means?
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Choice
  |     |   937 posts since 2020
And more productive replies would be? Thanks
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IGR
  |     |   580 posts since 2020
Seriously, Greendream?
After I've given you the benefit of the doubt and excluded you from the top part?
Do you really think I will expose myself telling here how many years I spent studying?
about fifth grade I comprehended that "Zero" and "plus" means "plus", and "Zero" minus "plus" means negative "plus". Do you want to challenge me about the meaning of "zero" multiplied or divided by "is"?
Do you want to be "Plus" or "Zero"?
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IGR
  |     |   580 posts since 2020
Just to clarify for all you "Liberal", one derogative step away from "Socialist" Majors.
Gravity and Newton still applied?
We are not here talking about Einstein's theory of "Zero"?
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CDsuckers
  |     |   70 posts since 2022
Well, Mr. All Things Zero.
What's zero to the zero power?
The following is not an open book test question.
No internet search cheating please.
Please provide your proof.
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IGR
  |     |   580 posts since 2020
Go back to High School.
And stop wasting my time, you have already exposed yourself enough!

But for added fun and to complete my mission here are your answers.
1. Until you show Newtonian example of "zero power?", Zero remains Absolute and can not be manipulated. Zero can only be substituted, as in your "elegant" but inconvincible attempt of "collecting 0% plus whatever the inflation rate is".
2. It is equal to the number of CDsuckers talking to CDsuckers. For the Exact answer and the proof you must consult Psychiatry. Fundamental Mathematica's answer of 1 does not apply here.
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CDsuckers
  |     |   70 posts since 2022
I'll have to give you an incomplete on this because you have not provided a proof.
However, you are correct that the answer of unity does not contextually apply here.
Just as future inflation cannot be determined, neither can zero to the power of zero.
Setting zero to the power of zero to unity is mathematical convention (delta fudge).
In IT, the value of unity is often substituted to prevent errors from being thrown.
That's because IT exists in the mundane world of discrete mathematics.
There's a number of functions that need it to be unity to return a consistent result.
Hopes this helps you in your understanding of zero plus whatever the inflation rate is.
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GreenDream
  |     |   358 posts since 2019
Seriously IGR, still failing to comprehend written English I see. Hopefully you have the excuse that English isn't your primary language. "collecting 0% plus whatever the inflation rate is". does not equal "collecting 0%" Since you claim to understand what both zero and plus means one can only conclude that your ignorance is entirely willful when you keep ignoring the plus part of that sentence..
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IGR
  |     |   580 posts since 2020
GreenDream, your message is out of sequence and out of content.
I'm surprised that in your English "I see" doesn't mean I understand.
Otherwise you would "conclude" that I'm willfully ignoring "zero", while focusing on "plus part of that sentence"...
don't bother...
If anyone willing to return to the original subject...
What is a sound redemption strategy? In particular Bonds issued in April 2022.
For the reason that escapes me, unless it is an issue of English comprehension or general ignorance, April 2023 rate is known as 6.48% and will be in effect for April 2022 bonds until October 31, 2023.
yet, Treasury only calculates "Yields to Maturity" and "Redemption Values" only until May 2023 as 5.95% Redeemed in April 2023 and 6.2% Redeemed in May.
I'm to lazy to do my own calculations and would have to wait till first week of May for Treasury to update its own.
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GreenDream
  |     |   358 posts since 2019
"GreenDream, your message is out of sequence"

All I can do is hit reply to the specific message I'm replying to, I don't control the order the site chooses to place the message after that.

"if anyone willing to return to the original subject"

In other words, rather than admit your willful ignorance regarding what was actually written, you try to switch topics and hope people don't notice your bad behavior. Sorry but if you can't admit to what you did (and at this point an apology would also be in order, because it's clearly not just a simple mistake on your part but a willful act), how do you expect anyone to take you seriously about anything else you might wish to discuss? (discuss in your case appears to mean agreeing with you or else getting half of one's words willfully ignored in order to take the rest out of context. Sorry but that's not a discussion, that's you trolling).

" April 2023 rate is known as 6.48% and will be in effect for April 2022 bonds until..."

That's a neat trick, future bonds rates in effect for past bonds. Did you use a Delorean, a TARDIS, or Bill & Ted's Phone booth to accomplish that one? ;)

Proofread. I really do suggest you learn how to do it.

"yet, Treasury only calculates"

You are going to have to be more specific. What are you talking about? TD's Bond calculator? It doesn't really do calculations beyond May 2023 because of the rate schedule (IE new rates every May and Nov). TD chose to be like you (lazy, per your own admission) and simply cut off calculations for all bonds based on the next rate reset month rather than go the not lazy route of figuring out where the cut off is for each individual bond based on the bonds individual rate reset month as determined by its issue date.
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IGR
  |     |   580 posts since 2020
"bad behavior"?
How old are you?

"Did you use a Delorean, a TARDIS, or Bill & Ted's Phone booth to accomplish that one?"
Either, Personal limitations, Preoccupation with English Grammar or both prevented you from cognitively understanding how I-Bond works!

Do I "HAVE to be more specific"? If only for your personal benefit, then I am not going to, do your own comprehension!
Please, quit this tread while you unwilling and uncapable of contributing anything of the value.
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GreenDream
  |     |   358 posts since 2019
You of all people accuse other of lacking comprehension and of contributing nothing. Bwahahahahahahahahahahahahahahahahahahahaha. In addition to learning what plus means, the basics of the English language, and how to proof read, you need to learn how to use a mirror.
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IGR
  |     |   580 posts since 2020
Nothing but noise, yet still going and going
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GreenDream
  |     |   358 posts since 2019
Indeed you are, glad you finally looked in the mirror to notice that. ;)
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IGR
  |     |   580 posts since 2020
it keeps going and going...
Stupid Troll or poorly programmed Bot.
GreenHole it is.
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GreenDream
  |     |   358 posts since 2019
Yes, you do keep going, and repeating yourself, so maybe you are a poorly programmed bot after all. But I'll give you the benefit of the doubt and stick with you are just a stupid troll.
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IGR
  |     |   580 posts since 2020
it keeps going and going...
GreenHole it is.
wnsu, ptrakg!
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GreenDream
  |     |   358 posts since 2019
IGR the stupid troll just keeps on trolling along. Ho hum.
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IGR
  |     |   580 posts since 2020
it keeps going and going...
GreenHole it is.
it is wnsu.
Will Not Shut Up!
boringly predictable as poorly programmed,
it is ptrakg.
Post The Redirect And Keeps Going!
ngcoogh.
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GreenDream
  |     |   358 posts since 2019
IGR the stupid troll just keeps on trolling along attributing to others it's own bad behaviors. Ho-hum indeed.
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