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Subject:  Re: I Savings Bonds Date:  10/7/2000  1:13 PM
Author:  Mark0Young Number:  25362 of 88533

Two different people (managers were not in the bank at the time) told us we would have to deposit the money in our checking account and wait for 10 days and then fill out the forms and write the check

Many banks and credit unions want at least 5 business days to make sure the out-of-state checks clear before putting their own money on the line. The "10 days", if referring to calendar days, is reasonable.

My first savings bond purchase was last month, an I-Bond, and I didn't write any checks--the credit union debited my account for the amount of the I-Bond I purchased, so I don't know if they consolidate the purchases on one check from the credit union, or if they send a bunch of individual checks. I do know that they did not print off a check while I was there.

When they pulled out the file they quoted as a rate of 6.18% --everything in the file was over 1 year old. Current rate is 7.49%.

That shouldn't matter--what matters is the month the particulare bond was issued (for the fixed rate portion of the I-Bond) and what the value of the CPI-U is in each 6-month period that you are earning interest (May 1 to November 1 and November 1 to May 1, for the variable rate of the I-Bond).

Make sure that they use the right form--it should identify itself as "I SERIES" and they should charge you face value.

One can also buy I Bonds online at $500 per transaction and charge it to your charge card (or so they say--when I tried a few weeks ago it wasn't working). Or one can sign up for "Easysaver" that direct debits one's checking account on a regular basis to purchase I-Bonds. Both methods are available off of the I-Bond information page:

What I could not find was a way to make a one-time purchase by check--neither an application for one-time purchase nor instructions on how to do so were available.

BTW, my understanding is that a married couple can buy up to $60,000 of I-Bonds by putting one person & SSN down as the primary owner for the first $30,000 and the other person & SSN for the other $30,000. The I-Bond Information Page covers the exact details on how to do this, but apparently the limit is checked by SSN.

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