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How to Buy Series I Bonds That Pay 9.62 Per cent.

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The government’s inflation-protection savings bond is now more like a Birkin bag – more coveted.

With the stock market crashing and inflation soaring, people are looking for a place to park their extra money.

Paying 9.62 percent, the relatively unknown inflation-proof Series I savings bond, sold $ 17.5 billion in the six months to May, according to the Treasury Department.

That’s compared to $ 364 million in I bond sales in 2020.

If you get a little more than 1 percent money, Eye Bonds are an attractive deal. My toll-free line ASK-POST (855-275-7678) has several callers asking about I bonds.

Now is the best time to buy a savings bond on this inflation index

There are a few things you need to know before buying an Eye Bond.

– You must set up an account at TreasuryDirect.gov to purchase bonds.

– The interest rate on new Series I savings bonds is 9.62 percent as of October 2022.

– Individuals can only buy up to $ 10,000 in electronic I bonds each calendar year. If your purchase exceeds that limit, it can take up to 16 weeks for the Treasury to process the repayment. (You can buy up to $ 5,000 on Paper I bonds using your federal income tax refund).

– You pay the bond’s face value. For example, you pay $ 25 for a $ 25 bond.

– You cannot cash an I bond for at least one year. If you cash out the bond five years ago, you lose interest on the previous three months.

– You have to pay federal income taxes on interest.

Now, here is a step-by-step guide to buying I bonds, starting with setting up an account at TreasuryDirect.gov.

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1. Pack Your Patience. Seriously. The website states that account setup takes 10 minutes. Some may not, if everything goes well. It is not for me and my husband. It took me 20 minutes to get the initial setup and in the end, I couldn’t set up an account online (more about that.) It took my husband about 30 minutes with Snafu. If there is a problem or you make a mistake, the process of correcting it is frustrating and archaic.

And last month, many rushed to Treasury Direct to buy a government savings bond that crashed the website.

2. Go to TreasuryDirect.gov. Click the link to open an account under “Account Login”. If you are not sure how to navigate Take a process, guided tour. I recommend watching a video on how to set up an account. A lot of readers said they were having trouble setting up their account and now they are having trouble reaching out to a live person to help them figure out what went wrong.

Answering and posting questions on I bonds, crypto cons, bank accounts

3. To set up an account, you need a taxpayer identification number, such as your Social Security number. You must also have an address in the United States. You need an email address. You will need to provide at least one telephone number.

4. There is a section to add your bank information, which is the account you use to purchase bonds. It should be a check or savings account. Check this section three times before you submit. You will be transported to a system that can be misunderstood and unable to handle online change. (More on this later).

5. You go through several additional steps to set up your account, including creating a password, selecting a personalized image and some security questions. Be sure to choose the strongest password and security questions you can get from searching your social media accounts. If you post a lot about your fish goldie or your beloved dog champ, don’t pick it up as an answer to a security question: What’s the name of your first pet?

6. Once you have set up your account, you will receive an email with your TreasuryDirect account number. When you log into your account for the first time, you’ll receive a one-time passcode sent to your email. Make sure the image you choose is visible. Finally, you enter the password you selected.

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7. If you set up an account successfully, you can purchase electronic bonds by transferring money from a check or savings account.

My husband mistakenly put the checking account number when we wanted the money to come from the savings account. You cannot correct account information online. You must print a bank change form to edit an existing bank in your TreasuryDirect account.

If that doesn’t disappoint, you must sign the paper form “in the presence of an authorized certifying officer available at a bank, trust company or credit union” and mail it to us for processing. Uff!

I checked all my info three times, although I couldn’t set up a TreasuryDirect account. Instead, I received an email, which says in part: “We have trouble reviewing the information you provide when opening your account. We are not provided with any information regarding account verification issues.

Now I have to go through some Byzantine process to complete setting up my account. The Treasury says in my defense, I must complete the account form, sign it in the bank “in the presence of a certifying officer” and mail it to the Treasury PO Box in Minneapolis.

Yes, we want drastic security measures. It is still a ridiculous obstacle for people trying to raise their money. Modernize security for good.

“We are working on changes that permit notarization – rather than the certification or guarantee of the applicant’s signature on the Treasury Direct Account Authorization Form (FS Form 5444),” a Treasury spokesman emailed.

Here’s some good news. If you are having trouble setting up an account, you can purchase the I bond by October 28 and you will still receive a 9.62 percent interest rate for six months.

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