I purchased $30,000 I-bonds in May for me and my wife, my son (as gift), and now our new minor grandson (as gift) with the intention of cashing out after a year, and when the rate drops. I plan to create a 529 for my grandson with the funds.

The rate, when purchased, was at 9.62%. How much should I have reflected in the accounts? I'm only seeing the initial purchase - $10,000.00. Interest is compounded semiannually, correct? I tried calling with no luck.

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Posted by jamiegla1

Member since Aug 2016

7910 posts

Posted on 12/14/22 at 4:39 pm to GentleJackJones

I just checked mine for the first time since I opened it last November. There is also no interest showing.

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Posted by gpburdell

ATL

Member since Jun 2015

1579 posts

Posted on 12/14/22 at 5:00 pm to GentleJackJones

I assume you are seeing the 10k on the first page after logging in. You need to click on "Savings Bonds" or "Gifts Purchased By You" to see the current value with interest. Not sure why they chose to do it that way.

Also, that amount includes the 3 month interest penalty if you are cashing out before 5 years. So you should wait 3 months after rates drop before cashing out. Otherwise you'll lose out on 3 months of interest at the higher rate.

ETA: To clarify, you should wait 3 months after the rate on each bond drops as they could be different depenidng on when purchased.

This post was edited on 12/14/22 at 5:24 pm

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Posted by lsu13lsu

Member since Jan 2008

11767 posts

Posted on 12/14/22 at 5:03 pm to GentleJackJones

when you log in to treasury direct you have to click into the bond to see how much is accrued. there should be a toggle button to click then hit submit.

When rate drops you will need to hold for 3 months so you lose the lower rate's three month's interest. so you will need to hold for 15 months.

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