I bond redemption timing
Tuesday, April 18th, 2006
Categorized as: Yesterday's News (old post archive)
If I want to redeem an I Bond that was bought 5/11/05, what is the earliest date I can do so outside the three-month penalty window? I don’t want to lose any of the 6.73% currently being paid.
The May 05 I bond has a fixed base-rate of 1.20%, so it actually earned 4.80% in its first six-month rate period (May-Oct) and 6.93% in its second (Nov-Apr).
If you’re not happy with the rate for its next rate period, which we’ll be able to figure out after the CPI is announced tomorrow, you can cash it on August 1 and forfeit May, June, and July’s interest.
The yield on this 15-month investment will be about 4.68%.