Comments on: Series I Savings Bonds vs the stock market

by: Tom Adams

Fri, 06 Nov 2009 20:15:14 +0000

Pat - The limit is per Social Security Number, so if your mother purchased a bond and made you the sole the owner but used her own SSN on the purchase form, the investment would go against her SSN. When purchasing a gift Savings Bond, the purchaser is allowed to use her own SSN or the SSN of the recipient, so there's no rule against doing this. Joseph - You'll normally see the value of a Savings Bond jump by four months worth of interest, rather than the usual one month worth, on its 5th anniversary. The reason you didn't see that with your I bond is that its composite rate for the last six months has been zero. If you check, you'll see the bond increasing in value in June, July, and August even though the interest rate the previous month was zero. These increases were effectively when you received the penalty interest. Tom Adams

by: Joseph

Fri, 06 Nov 2009 16:58:37 +0000

Tom,

When does the first three months of hold back interest show up in the total amount of accured interest on an I bond? I purchased I bonds in Nov. 2004 and no interest was shown to be accrued for the first three months. When I updated my SAVINGS BOND WIZARD in Nov. 2009 the total accrued interest did not change from Oct.09 to Nov.09. I was looking for the the hold back interest to show up after the five year holding period had expired.

by: Pat

Thu, 05 Nov 2009 17:47:58 +0000

In regards to your answer to Temple, could my mother give me a $5k I bond as a gift that would not count toward my annual purchase limit? I assume that if my mother could give me $5k I bond, this would count toward her annual limit right?

by: Tom Adams

Wed, 04 Nov 2009 15:54:45 +0000

Temple - there are no limits to the number or amount of Savings Bonds you can own. The limit is on how much you can invest per calendar year. But, for example, you could inherit $100,000 in bonds from ten different people. You'd be up to $1,000,000 (lucky you) but there would be no limit on how much more you could own. Robi - one person who figured out who to lobby was Professor Peter Tufano, although he was probably working with the IRS, not the Bureau of Public Debt. And here's a story about the boss of the folks you need to lobby, Van Zeck. Zeck at least knows what Savings Bonds are (see page 2 of the story). Tom Adams

by: Robi Zocher

Tue, 03 Nov 2009 18:22:04 +0000

Robert, one thing you don’t want to do is try and find out who makes the decisions regarding Savings Bonds limits. I tried last year, and I wasted a good part of a couple of days and a few brain cells as well.

I can tell you who doesn’t make decisions regarding Saving Bonds programs: Treasury Direct. I got pretty far up the chain of command there and the one final man I talked to said “good luck”.

I can also tell you that no one in the Congress or in Barney Frank’s office knows or cares about the Saving Bonds programs.

I can also tell you that someone or some committee in the Treasury department probably makes these decisions, but, finding out whom is an exercise in futility.

I too would like to see the limits restored, or at the very least increased, but the Wizard of Saving Bonds remains behind his or her curtain.

Does anyone know who we can lobby on this issue?

by: Temple

Tue, 03 Nov 2009 18:16:09 +0000

Tom,
What is the limit on the amount of paper US Savings Bond one can hold?

Is this limit the face amount or the face amount plus interest?

Thank you,
Temple