Page 1 of 1
I-Bonds - buy more before 1 Nov 2025 reset?
Posted: Sat Sep 06, 2025 5:12 pm
by Dieter
So, given the expectation that fed rates are coming down in the near future, anyone else thinking about getting I-Bonds before 1 Nov 2025 to lock in the 1.1% fixed rate?
On my 'likely' to do list for late September or October
I-Bond - "Cash" with:
* Currently 3.98%
- Guaranteed at least 1.1% for up to 30years
- Inflation Adjusted (yeah, it's not the 'real' rate of inflation, but, it's something)
* No state tax
* Deferred Federal Taxes until sell
* If buy late in a month, get interest for the full month
* If sell early in a month, get interest for the full month
Yeah, a little less than MM right now -- Vanguard MoneyMarkets are around 4.2%
I didn't realize that Ally and Capital One are at 3.5%, so, less while being fully taxable
Am I missing any downsides? (Other than can't access for one year; lose 3 months of interest if sell within 5years)
Seems good (least bad) for deep cash \ emergency fund
Re: I-Bonds - buy more before 1 Nov 2025 reset?
Posted: Sun Sep 07, 2025 12:38 am
by boglerdude
Downside is Leftists will be happy with 8% M2 if they can blame Trump, so buckle up
At what rate on current ibonds you hold, does it make sense to sell then buy at 1.1% fixed. Considering 3 mo interest penalty
edit: Here are the breakevens
https://youtu.be/k1etC0wGFHE?t=217
Re: I-Bonds - buy more before 1 Nov 2025 reset?
Posted: Mon Sep 08, 2025 6:33 pm
by yankees60
Dieter wrote: ↑Sat Sep 06, 2025 5:12 pm
So, given the expectation that fed rates are coming down in the near future, anyone else thinking about getting I-Bonds before 1 Nov 2025 to lock in the 1.1% fixed rate?
On my 'likely' to do list for late September or October
I-Bond - "Cash" with:
* Currently 3.98%
- Guaranteed at least 1.1% for up to 30years
- Inflation Adjusted (yeah, it's not the 'real' rate of inflation, but, it's something)
* No state tax
* Deferred Federal Taxes until sell
* If buy late in a month, get interest for the full month
* If sell early in a month, get interest for the full month
Yeah, a little less than MM right now -- Vanguard MoneyMarkets are around 4.2%
I didn't realize that Ally and Capital One are at 3.5%, so, less while being fully taxable
Am I missing any downsides? (Other than can't access for one year; lose 3 months of interest if sell within 5years)
Seems good (least bad) for deep cash \ emergency fund
The ever-present downside is being limited to buying $10,000 per year (the $5,000 more from tax return has been taken away). So not something to be used as part of a grand portfolio repositioning.
Re: I-Bonds - buy more before 1 Nov 2025 reset?
Posted: Sat Sep 20, 2025 12:38 am
by Dieter
yankees60 wrote: ↑Mon Sep 08, 2025 6:33 pm
Dieter wrote: ↑Sat Sep 06, 2025 5:12 pm
So, given the expectation that fed rates are coming down in the near future, anyone else thinking about getting I-Bonds before 1 Nov 2025 to lock in the 1.1% fixed rate?
On my 'likely' to do list for late September or October
I-Bond - "Cash" with:
* Currently 3.98%
- Guaranteed at least 1.1% for up to 30years
- Inflation Adjusted (yeah, it's not the 'real' rate of inflation, but, it's something)
* No state tax
* Deferred Federal Taxes until sell
* If buy late in a month, get interest for the full month
* If sell early in a month, get interest for the full month
Yeah, a little less than MM right now -- Vanguard MoneyMarkets are around 4.2%
I didn't realize that Ally and Capital One are at 3.5%, so, less while being fully taxable
Am I missing any downsides? (Other than can't access for one year; lose 3 months of interest if sell within 5years)
Seems good (least bad) for deep cash \ emergency fund
The ever-present downside is being limited to buying $10,000 per year (the $5,000 more from tax return has been taken away). So not something to be used as part of a grand portfolio repositioning.
Well, good (and bad) for me, I'm not looking to move even $10,000 into iBonds this year
Re: I-Bonds - buy more before 1 Nov 2025 reset?
Posted: Tue Sep 23, 2025 12:57 pm
by welderwannabe
Dieter wrote: ↑Sat Sep 06, 2025 5:12 pm
Seems good (least bad) for deep cash \ emergency fund
Excellent for an efund. Thats where I keep mine. IBonds are a good deal for cash.
Re: I-Bonds - buy more before 1 Nov 2025 reset?
Posted: Sat Sep 27, 2025 7:40 pm
by sophie
I got my I-bonds in January as usual...
I'm not sure I-Bonds are a great idea for an emergency fund. As time goes on and interest accumulates, the bar will get higher and higher to cash them out - because you'll owe tax on the accumulated interest all at once, plus selling them before maturity is a lost opportunity - and worse yet if the bond is less than 5 years old. You'd probably be better off selling stocks - better tax rates on the gains, and it'll be very easy to buy that stock again.
I could see selling I Bonds if you have a prolonged period of unemployment causing your income to drop drastically, but not if, say, your A/C blows up and you need to dip into your fund for a new one. So I think of mine as cash in a deep freeze - to be used only after retirement, or in an emergency with the stock market in a deep correction making it the only place to raise money.
Re: I-Bonds - buy more before 1 Nov 2025 reset?
Posted: Tue Sep 30, 2025 12:17 am
by Dieter
Well, it seems a better deep emergency fund location vs high-yield savings accounts, CDs, or money market accounts for me
Especially if rates drop and\or inflation picks up
For times don't want to sell gold, stocks, or bonds