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I forgot I bought a series I savings bond back in 2022 when interest was high. Should I cash out now? I’m confused bc the maturity date is in 2052, but I thought bonds are only 1 year?
Do I have to pay penalties?
I understand that Series I bonds earn interest based on inflation rates, which has fluctuated quite a bit since the bond’s issue.
I’m interested in hearing about factors that could affect the decision, like future interest rates, potential gains from holding the bond longer, and any tax implications.
For those with experience in bonds or investing, what might be some pros and cons of cashing in now versus waiting for the full term?
LorenzoPurchasing power will decrease significantly by then. Look at how much it’s decreased now. This type of investment is for people with multiple of millions imo
AmandaI’m seeing the fixed rate is 1.3. Those saying it 4%, where are you finding that?
RenéeI bought iBonds several years ago too and it looks like my rate now is 4.x. I’m confused why yours is lower, should we all be the same?
JTLooks like a 30 year bond but you can cash it out any time after 1 year.
CBI think it is better to keep them for the full 30 years. The rate changes on bonds every 6 months.
It may not be a lot of money but you get double your money back, and it is not taxed at the state or federal level.
JessicaCash out. As others have said you can cash out after 1 year. I did beginning of this year and put the money in VTI
Prasithif you have other loans greater than 5%, pay that off. If not, invest in stock market, in a low cost broad index fund.
That will fetch you more returns.
BenYou can cash out after 1 year. If you cash out before 5 years, you lose the last 3 months worth of interest.
There is a fixed rate right now so if you want to keep ibonds, now is the best time to sell and rebuy at the higher rate! This is what I did
BenFYI, there’s only a few days left to lock in the current fixed rate. New rate after October 31 is expected to be lower.
CarlaYou can’t take it out before 12 months and if you take it out before 5 years you lose 3 months of intetest.
We are using ours for daughter’s college next fall.
ErikMost bonds have a 15-30 year maturity. Not sure where you’re getting a one year maturity from lol.
RussellBad interest rate.
Sell, can put that money into betterment high yield savings. 4.5%TinaCash it in but wait until November 1 so you get that month’s interest. You’ll lose three months interest, but better to invest in a higher yielding vehicle at this time.
NekaThat money would yield more in a HYSA/Money Market Account or CD please cash out quickly
RyanSell. I bought mine at the same time and sold after 18 months.
You sacrifice the last three months of interest.You got the high interest rate already and as you can see it is no longer worth it to hold.
The rate is variable and only stayed at 9% for like half a year.
Sell now and reinvest
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