Do Savings Bond purchase limits impact rollovers?
Monday, June 19th, 2006
Categorized as: Buying US Savings Bonds • Cashing in US Savings Bonds • Series I US Savings Bonds
I have been investing the $30,000 maximum in Series I Savings Bonds every year. Is the $30K limit based on gross purchases or net purchases? That is, can I redeem $90K of my old savings bonds and purchase $120K in one year if the rate goes up?
[NOTE: As of Jan 1, 2008, the annual purchase limit has been reduced to $5,000 from $30,000.]
The limit is based on gross purchases, which makes rollovers like you’re thinking about more difficult. Moreover, your old bonds are actually worth more than $30,000 now, but the limit is still $30,000.
However, keep in mind that if both you and your wife open TreasuryDirect accounts, you can each invest an additional $30,000 per year in I bonds there. So each of you would be able to buy/rollover $60,000 worth of I bonds per year ($30,000 paper + $30,000 TreasuryDirect).