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Where to Invest Ibond Withdrawals?
Posted on 7/5/23 at 10:14 am
Posted on 7/5/23 at 10:14 am
I'm coming up on 3 months past my Ibonds issue date (5-1-2022). So August 1st should be three months past.
Currently earning 3.38%.
So I assume best to cash them out in August and put it something else.
I've got about 40k between my wife and I.
Daughter has around 4k and my son has about 6k.
Daughter will be using hers in about 2 years to help put a downpayment on a house. We will be using our sons to go towards a car in about two years.
Don't really have any plans for my wife and mine in the near future other than sticking some in IRAs. We are already maxing 401k.
So thinking stick it in a 1 year CD or Money market account?
Any suggestions or has anyone seen some really great CD rates? I know there are some in th 5% range these day.
Thanks for any suggestions.
Currently earning 3.38%.
So I assume best to cash them out in August and put it something else.
I've got about 40k between my wife and I.
Daughter has around 4k and my son has about 6k.
Daughter will be using hers in about 2 years to help put a downpayment on a house. We will be using our sons to go towards a car in about two years.
Don't really have any plans for my wife and mine in the near future other than sticking some in IRAs. We are already maxing 401k.
So thinking stick it in a 1 year CD or Money market account?
Any suggestions or has anyone seen some really great CD rates? I know there are some in th 5% range these day.
Thanks for any suggestions.
3
Posted on 7/5/23 at 10:22 am to NATidefan
quote:
Currently earning 3.38%.
I thought the current ibond rate was 4.3%, which is about equal to what you'd get from a savings, money market or CD right now. Maybe slightly lower. I'm planning ride my ibonds until the next reset date and see what the new rate is then.
Posted on 7/5/23 at 10:32 am to jfw3535
That's if you include the fixed rate of .9% that was issued this may.
3.38+0.9=4.3%
That's only included if you purchased between May 1st, 2023 and October 31, 2023.
You can see the current rate you're earning on treasury direct if you select the bond. It will also show you what is worth if you cash it out and lose the last three months interest earned.
3.38+0.9=4.3%
That's only included if you purchased between May 1st, 2023 and October 31, 2023.
You can see the current rate you're earning on treasury direct if you select the bond. It will also show you what is worth if you cash it out and lose the last three months interest earned.
This post was edited on 7/5/23 at 10:47 am
Posted on 7/5/23 at 10:35 am to NATidefan
LINK
When Should I Cash Out My I Bond from November 2021 – April 2022?
If you bought an I Bond from November 2021 – April 2022 that I Bond earned 7.12%, then 9.62%, then 6.48% on its own 6-month renewal schedule.
When it comes due for the new rate, sometime between May 2023 – October 2023 you may see that 3.38% rate and think ‘I want to cash out.’
To keep that high interest of 6.48% you need to hold on to the I Bond for 3 more months, at that new rate, so that when you cash out you lose the new, lower interest rate, and keep all your high rates of interest.
Here’s a handy chart that shows that if you bought in a particular month when you should consider cashing out.
For the example of a November 2021 purchase at 7.12% you got 9.62% in May 2022, then 6.48% in November 2022.
Then you got the new 3.38% rate in May 2023.
If you don’t like the new rate, you’ll want to hold on to that I Bond through May, June and July so that you have 3 months interest at the new rate. Then you can cash out in early August so that you lose that prior 3 months interest, and none of the 6.48% interest.
Purchase Month Consider Cashing Out
November 2021 August 2023
December 2021 September 2023
January 2022 October 2023
February 2022 November 2023
March 2022 December 2023
April 2022 January 2024
When Should I Cash Out My I Bond from May 2022 – October 2022?
If you bought an I Bond from May 2022 – October 2022 that I Bond earned 9.62%, then 6.48% on its own 6-month renewal schedule.
When it comes due for the new rate, sometime between May 2023 – October 2023 you may see that rate and think ‘I want to cash out.’
To keep that high interest of 6.48% you need to hold on to the I Bond for 3 more months, at that new rate, so that when you cash out you lose the new, lower interest rate, and keep all your high rates of interest.
Here’s a handy chart that shows that if you bought in a particular month when you should consider cashing out.
For the example of an October 2022 purchase at 9.62%, you will start getting 6.48% in April 2023. Then you’ll get the new rate in October 2023.
You’ll want to hold on to that I Bond through October, November and December so that you have 3 months interest at the new rate. Then you can cash out early January 2024 so that you lose that prior 3 months interest, and none of the 6.48% interest.
When you heard the new rate of 3.38% in May 2023, might have thought “I don’t want that interest. I want to get out” but if you want to keep all your high interest you shouldn’t cash out for another 8 months!
Purchase Month Consider Cashing Out
May 2022 August 2023
June 2022 September 2023
July 2022 October 2023
August 2022 November 2023
September 2022 December 2023
October 2022 January 2024
When Should I Cash Out My I Bond from November 2021 – April 2022?
If you bought an I Bond from November 2021 – April 2022 that I Bond earned 7.12%, then 9.62%, then 6.48% on its own 6-month renewal schedule.
When it comes due for the new rate, sometime between May 2023 – October 2023 you may see that 3.38% rate and think ‘I want to cash out.’
To keep that high interest of 6.48% you need to hold on to the I Bond for 3 more months, at that new rate, so that when you cash out you lose the new, lower interest rate, and keep all your high rates of interest.
Here’s a handy chart that shows that if you bought in a particular month when you should consider cashing out.
For the example of a November 2021 purchase at 7.12% you got 9.62% in May 2022, then 6.48% in November 2022.
Then you got the new 3.38% rate in May 2023.
If you don’t like the new rate, you’ll want to hold on to that I Bond through May, June and July so that you have 3 months interest at the new rate. Then you can cash out in early August so that you lose that prior 3 months interest, and none of the 6.48% interest.
Purchase Month Consider Cashing Out
November 2021 August 2023
December 2021 September 2023
January 2022 October 2023
February 2022 November 2023
March 2022 December 2023
April 2022 January 2024
When Should I Cash Out My I Bond from May 2022 – October 2022?
If you bought an I Bond from May 2022 – October 2022 that I Bond earned 9.62%, then 6.48% on its own 6-month renewal schedule.
When it comes due for the new rate, sometime between May 2023 – October 2023 you may see that rate and think ‘I want to cash out.’
To keep that high interest of 6.48% you need to hold on to the I Bond for 3 more months, at that new rate, so that when you cash out you lose the new, lower interest rate, and keep all your high rates of interest.
Here’s a handy chart that shows that if you bought in a particular month when you should consider cashing out.
For the example of an October 2022 purchase at 9.62%, you will start getting 6.48% in April 2023. Then you’ll get the new rate in October 2023.
You’ll want to hold on to that I Bond through October, November and December so that you have 3 months interest at the new rate. Then you can cash out early January 2024 so that you lose that prior 3 months interest, and none of the 6.48% interest.
When you heard the new rate of 3.38% in May 2023, might have thought “I don’t want that interest. I want to get out” but if you want to keep all your high interest you shouldn’t cash out for another 8 months!
Purchase Month Consider Cashing Out
May 2022 August 2023
June 2022 September 2023
July 2022 October 2023
August 2022 November 2023
September 2022 December 2023
October 2022 January 2024
This post was edited on 7/5/23 at 10:36 am
Posted on 7/5/23 at 10:40 am to tigersnipen
quote:
Purchase Month Consider Cashing Out
May 2022 August 2023
Yes, this is me and why I'm considering cashing out in August.
Posted on 7/5/23 at 11:00 am to NATidefan
quote:
Yes, this is me and why I'm considering cashing out in August.
I plan to cash out and just Ladder short termn T-Bills since the rates are pretty good for short term. This is assuming the rates hold up until I do cash out.
Posted on 7/5/23 at 1:10 pm to tigersnipen
Just like the OP, my wife and I purchased 10k each on 5/2/2022. Are t-bills a better investment as of today?
Posted on 7/5/23 at 5:05 pm to prestigeworldwide
quote:
Just like the OP, my wife and I purchased 10k each on 5/2/2022. Are t-bills a better investment as of today?
Yes currently ~2% better
Current T-Bill Rates
Posted on 7/6/23 at 3:43 pm to tigersnipen
so you need to wait one year and three months to cash out with least penalty ?
Posted on 7/7/23 at 1:24 pm to NATidefan
CELSIUS!!!!!!!
Posted on 7/7/23 at 11:37 pm to Fat Bastard
Why not Voyager 
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