Ask Terry Questions Reinvesting I Bonds?

Reinvesting I Bonds?

By Terry Savage on May 15, 2023 | Chicken Money

On WGN you talked about reinvesting I Bonds before May 1st . I went into my account to do so and it doesn’t give me that option. I had my I Bond for less than a year is that why??

Terry Says

No, you didn’t listen carefully enough. When I talk about “reinvesting”, I’m talking about Treasury Bills, which mature in 13 or 26 weeks.
You do NOT reinvest I-bonds. The rate you are paid automatically changes every 6 months, and there is nothing you can do about that. You should plan to hold them for at least 5 years to avoid a 3-month loss of interest penalty for getting out early.



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