Ask Terry Questions Interest on t bills and I bonds

Interest on t bills and I bonds

By Terry Savage on February 17, 2023 | Chicken Money

Is the interest I receive on a 6 month T – Bill and a 6 month I -Bond monthly and if so then that then will equal a total of 6 individual months of interest ?? This is my first time purchasing these in my life so I am kinda still learning the process and just looking for a simple explanation !! Thank you !! Robert

Terry Says

I bond interest “accrues” and will show up in your TreasuryDirect account starting about 5 months after purchase. Interest accrues and taxes are not paid until the bond is sold.
T-bill interest is “left” in your account at the time you purchase the bill. That is, if you buy $10,000 bond, they’ll take out $9,900 — or something like that. The interest doesn’t become taxable until the year the T-bill matures.
Read this: https://www.terrysavage.com/t-bills-beat-cds/

But you do NOT get monthly interest in either of these products.

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