Reply to F---ing I-Bonds

Forum Index » Money and Finances

Reply to "F---ing I-Bonds"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]Holy sh#t.

So let me make sure I understand this:
-The rate is reset every 6 months. The rate from Nov 2021 to April 2022 is 7.12%
-You must hold the bond for at least 12 months.
-If you cash out before 5 years, you lose the last 3 months of interest earnings. 
-No state taxes on the income, but you will owe federal taxes on income.
-$10K max per year in electronic bonds, $5K max in paper bonds.

[b]What's the catch?[/b][/quote]
Good that on one hand there’s no tax until you redeem or matures. On the other hand, you cannot reinvest the dividends. This might matter more for longer term investors.[/quote]

Perhaps I
'm not understanding your point, but, From the Treasury Direct website:  "The interest is compounded semiannually. Every six months from the bond's issue date, all interest the bond has earned in previous months is in the bond's new principal value. Interest is earned on the new principal for the next six months. For example, in month seven, interest is earned on the original price plus six months of interest."[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics