As far as i know interest on I Bonds accumulates on monthly basis. I've
purchased bonds on Nov 1-st this year. Today if I look into my account
details on treasurydirect.gov I see the "Current value" being the same
as an "Amount" - the amount I paid for the bonds. Am I supposed to
0.56% (6.73/12) interest accumulated?
Thanks,
vlad
Vtd wrote:
>
> As far as i know interest on I Bonds accumulates on monthly basis. I've
> purchased bonds on Nov 1-st this year. Today if I look into my account
> details on treasurydirect.gov I see the "Current value" being the same
> as an "Amount" - the amount I paid for the bonds. Am I supposed to
> 0.56% (6.73/12) interest accumulated?
> Thanks,
> vlad
My guess is that you are seeing the same "current value" you would see
on the savings bond calculator at:
According to the help for the calculator (press the "Help" button at the
top"):
"If a bond was issued May 1997 or later and it's cashed before it's five
years old, it's subject to a 3-month interest penalty. The interest
shown here incorporates this penalty."
You may be seeing the current value, including redemption penalty, even
though you can't redeem the savings bond yet. The value doesn't drop
below the initial purchase price, but at 4 months, you'll begin to see a
rise in value. At least that's the way the calculator works.
--
Mark Freeland