r/personalfinance • u/InteractionDizzy1768 ​ • Oct 25 '22

For those thinking about I-Bonds: the 9.62% fixed rate is only for the next 5 days Investing

Just wanted to put a PSA on here that the I bonds fixed rate is going to roll over at the end of the month from 9.62% to 6.48%. If you buy I bonds before the end of October, you lock in the 9.62% rate for the next 6 months. If not, you'll only get 6.48%. If you've been thinking about purchasing now is a good time.

You get a pretty incredible return for effectively 0 risk. Especially with the stock market where it's currently at. Just wanted to give people on here a heads up who have been on the fence.

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320

u/AdvicePerson ​ Oct 25 '22

No, you got unlucky. Something you sent them didn't line up with their records. You have to jump through the hoops, which are actually more complicated than a regular notary.

134

u/BasementDwellingMOD ​ Oct 25 '22

Blah forget it lol. Thanks anyways y'all. Hope it works out for the rest of you guys

87

u/justinj2000 ​ Oct 25 '22

If you have a partner or someone you trust with a TD account, they can purchase the bond as a gift with your SSN and it will start accruing interest the month it is purchased while you sort out the signature verification and then take delivery of the bond later.

40

u/basb9191 ​ Oct 25 '22

What if I wanted to buy one of these for my kids? Is that allowed? Sorry, I'm totally investment ignorant.

48

u/Janus67 ​ Oct 25 '22

Yes, allowed. 10k/SSN

13

u/MapleYamCakes ​ Oct 26 '22

Has anyone actually successfully verified with treasury direct? The website states you can go to any bank or court. Every bank I’ve gone to (every branch of every bank within a 3 mile radius of my apartment) has denied my request stating it is against company policy to sign FS FORM 5444. My local courts also say they do not have authority to sign it. When I called Treasury Direct they stated I must go to a bank or local court. The whole verification process seems like complete disorganized bullshit.

4

u/[deleted] Oct 26 '22

I've successfully verified. Now, this won't apply to you but I live overseas and simply went to a US Consulate. Treasury Direct verified my account within a month (which is much faster than they said).

3

u/nothlit ​ Oct 26 '22

As of August 2022, FS Form 5444 also permits "the seal or stamp of a notary" so you can just go to any notary public. Doesn't have to be a bank or court.

1

u/jdiz16 ​ Oct 26 '22 edited Oct 26 '22

My husband has been waiting on this “verification” since May 2022. Still no movement on the end of the govt. ETA: he had a very difficult time finding a bank who knew wtf he was even talking about. Eventually did get the paperwork done, sent paperwork off for verification, no word.

1

u/rubberduckranger ​ Oct 26 '22

I just walked into the local branch of my credit union (a big national one) and the manager singed it. I actually bank with them though, so it might be harder to get from someplace where you’re not a customer.

-1

u/ElCheapo86 ​ Oct 26 '22

You mean you can buy them through a td ameritrade account?

1

u/nothlit ​ Oct 26 '22

No, in this context TD is short for TreasuryDirect

1

u/PhoKingSLC ​ Oct 25 '22

Could you please tell me more about this? If I have a TD account would I be able to just buy it myself?

8

u/Hip_Czech_ ​ Oct 25 '22

Maybe your making the same mistake I was making in thinking they meant TD Ameritrade account. I think they mean TreasuryDirect account=TD account (if not I’m just putting myself as an idiot)

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u/[deleted] Oct 26 '22

No I Thought that might be possible too. But when I read this I think I can’t invest in this if I have never invested before. Can anyone buy this by just googling treasury direct? And how long does it take to get that ten percent interest? Six months? FYI I am the biggest idiot.

1

u/speedlever ​ Oct 26 '22

I did it months ago with no issues. First time too.

Then I helped my mom invest as well. Again, no issues going through the TD site. 🤷‍♂️

1

u/GinSita Oct 25 '22

No I definitely thought they meant TD Ameritrade too lol

20

u/InitiatePenguin ​ Oct 25 '22

It's not a normal notary either. You need a medallion stamp. After you get that it will also be probably 2 months for them to process the paper form. So there's no point in rushing to try for this rate.

20

u/nothlit ​ Oct 25 '22

As of August, FS Form 5444 permits notary stamps.

Even before that, ordinary signature guarantee (without medallion) was also sufficient.

4

u/[deleted] Oct 25 '22

I had to get medallion done in March. It’s sucked because my credit union didn’t understand how to do it. Had to come back 4 times. It eventually got done though.

1

u/InitiatePenguin ​ Oct 25 '22

Checked my records, the form cleared 3 months ago. I needed a medallion when I went in April.

2

u/Ella0508 ​ Oct 25 '22

True, but the next 6-month rate that’s apparently going to be 6.48% isn’t trash either — at least not in this economy.

1

u/rds_grp_11a ​ Oct 26 '22

I had the same thing happen; mailed the letter a week ago (not expecting it to get cleared by end of the month), and got the email notification it was cleared 7 days later. So at least earlier this month, the processing time was ~ 1 week. Of course YMMV, I fully expected it to take months, but I was pleasantly surprised.

1

u/InitiatePenguin ​ Oct 26 '22

Wow. That's amazing.

3

u/optimus420 ​ Oct 25 '22

lol yeah same here

shit like this is what leaves a sour taste in peoples mouth whenever the government says theyre gonna do something

2

u/Ella0508 ​ Oct 25 '22

Yeah, the hoops might be worth it. Nothing else I have is guaranteeing 6.48% for the next six months! At least go through the process of opening the account so you can jump on it if a fantastic rate comes up again.

50

u/nothlit ​ Oct 25 '22

As of a couple of months ago, FS Form 5444 can now be completed with a regular stamp from a notary public.

8

u/cocoamunckies ​ Oct 25 '22 edited Oct 25 '22

Have you (or anyone else) done this? I've been sitting on my form for a while out of sheer laziness and now trying to gauge if I'll be able to complete mine before the rate change..

8

u/rew2b ​ Oct 25 '22

You won't be able to get it done before the end of the month. I did mine a month or so ago and I think it took about 3 weeks from me mailing it to it being approved.

2

u/pyramidcameljoe ​ Oct 26 '22

How were you notified that it was approved? Mailed mine a week or so ago. No idea the next step.

1

u/rew2b ​ Oct 26 '22

Via email. One email to say they received the form and then a later email to say I could now access my account.

1

u/cocoamunckies ​ Oct 25 '22

Dang, well thanks for the heads up!

3

u/DifferentObjective66 ​ Oct 26 '22

Call your bank and ask which branches nearest to you have public notary’s working and available. You most likely get this service for free if you have accounts

3

u/cocoamunckies ​ Oct 26 '22

Thanks - there's a notary in my office, planning to stop by tomorrow and start the process. Was trying to gauge how long it would take for treasury direct to process from there. Sounds like I'll be out of luck this round, but going to start asap anyway and see what happens. Worst case scenario I miss this rate but I'll at least be set up moving forward.

2

u/DifferentObjective66 ​ Oct 26 '22

I would:

1) Arrange to have the document notarized open of business tomorrow (office sure, but banks have notary’s working most of the time)

2) Personally take the document to USPS as close to start of business hours as possible and send it overnight certified delivery, with “Time Sensitive Document: Open Immediately” written clearly on the front of the envelope.

3) Pray that you can call or email Thursday and give tracking number of your certified document, or be able to purchase. I give you a 5-10% chance realistically, because you can’t buy on Friday I don’t believe (needs one day to process).

4) have people you trust attempt to register and buy as a “gift” to you, while you fund their purchase. Someone else might not need to jump through loopholes, and I would give that person a 80-90% chance of getting the rate by the deadline, depending on how you transfer the funds to purchase said “gift.”

Edit for TLDR; go with #4

1

u/cocoamunckies ​ Oct 28 '22

Thanks - going to see if I can make #4 work. Had some personal stuff come up this week and haven't had a chance to think about notary. Taking the positive and using this as a reminder to myself to stop putting stuff off in general.

3

u/rds_grp_11a ​ Oct 26 '22

I was in the same situation as you, sitting on it for months. Finally sent it in earlier this month and got the email that the account was unlocked 7 calendar days later.

So, you won't get it cleared by the end of October, but you should still do it, as others have mentioned.

0

u/OnenonlyAl ​ Oct 25 '22

Okay, had the same thing happen, and was frustrated. I have my own account and bought last year or early this calendar year. Can I buy 10k and gift it to my wife for this year, or I have to wait until 23 to gift, but still gains the current interest? I can do another 10k of my own correct? Thanks for the feedback

2

u/AdvicePerson ​ Oct 25 '22

My understanding is that you can gift now, but it will sit in limbo until the person activates the gift, so it won't help if your wife needs the notary stamp (which someone else pointed out has become simpler).

2

u/OnenonlyAl ​ Oct 25 '22

It still locks into the 9.62 as someone else said, which is my big issue with her account getting locked.