Newbie question -- treasurydirect.com looks great for some IBonds (currently with 8% - 9%). But their website looks so old, looks like it is from 1999. Is it trustworthy, has anyone had a good or bad experience with trying to get their money out of the site and back into a personal account? I also heard some people say IBonds were great for income (note: I'm aware of $10k/year purchase limit, and penalties of w/draw before 30 years). But how would you get a monthly or yearly income stream out of an IBond? The site says the interest accumulates, and get it when you cash out the bond. This sounds like a one-time lump payout, not a steady income stream.
I've used the site to cash EE bonds successfully, it was a bit of a pain because the bonds were paper and had to get them certified(?) at a financial institution also remember it's compounded interest, with the interest earned added to the principal twice a year: So, I wouldn't touch it unless you really needed the money. https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm *EDIT*: this might answer your question on cashing partial amounts to create an "income stream" if you need to do that: https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iredeem.htm
I used treasurydirect.com before and it was straight forward to transfer money in and out. You can link a bank account to your treasury account for fund transfers.
I think the website is fantastic and very user friendly. Back in the early 2000’s you could buy 30k/year in I-Bonds AND use your credit/Charge card for the purchases. Was an easy way to rack up some Amex points. Sadly they ended the credit card loophole around 2004 I believe.
I've used TreasuryDirect since it was formed, having had account at what they now term "legacy." However, I agree, the site is antiquated & difficult to use. I only started to use again about a year ago, when it seemed clear interest rates would increase. Funds in Treasury instruments today pay about highest rate for minimal risk, and with the funds actually held by the Treas far safer than any bank. However, maybe 6 months ago, contrary to almost every financial institution, one can no longer create, delete, nor change banks with TreasDirect, except by printing and having physically notarized their form. Crazy, IMO. I have IBonds (self & separate account for wife,) but have only moved money in/out for TBills & Notes. Never a problem -- after bank links already established. The cost of new TBills are at discount, so when redeemed at face value, the interest received can accumulate wherever you wish -- buy more TBills/Notes, or transfer to your bank account. On the plus side, I've e-mailed questions over the years, and generally receive an intelligent answer within 1-2 days. Far faster than banks, brokers, etc., and a real answer, rather than pre-formatted responses Each time I'm on site, I rate the performance "poor," but only about 4% of users agree with me. I never understand that.
I have an account at Treasury Direct. Thanks for the tip on needing signature guarantees to switch banks. I have never bought T notes before and would appreciate your insight. I was going to explore purchasing 2 yr Treasury Notes through my broker. Is there an advantage of buying directly from Treasury Direct. Do brokers charge some sort of commission to do this? Is it difficult to redeem Notes through Treasury Direct before they mature? There seems to be something about only being able to purchase Notes through Treasury Direct when they are auctioned? Right now I would have to wait until July 21st for the 2 yr notes. Do you send in the funds in advance? I found this - " TD Ameritrade may act as either principal or agent on fixed income transactions. When acting as principal, TD Ameritrade will add a markup to any purchase, and subtract a markdown from every sale. This markup or markdown will be included in the price quoted to you. When placing fixed income trades through the Retail online platform, TD Ameritrade will charge a $1 per bond or CD on secondary transactions. Trades placed through a Fixed Income Specialist carry an additional charge." Not sure of the difference between principal and agent. I would suspect principal would apply to very large transactions. I will call TD. However, I would appreciate any insight you might have to the process of purchasing Treasury Notes - Treasury Direct vs TD Ameritrade.
Ah -- that's what I was looking for. I thought it was like a bond coupon with a face value of $10k. But from that section, it sounds more like it is $10k worth of bond, and partial amounts can be cashed out. Thank you for pointing that out, unfortunately it's too easy for me to miss these kinds of details.
Treas Direct does not charge individuals a commission, nor any mark-up, providing their buy orders are at "non-competitive" rates. That will guarantee the "average" price at any auction. Separately, I'm a long-time A.R. fan, though don't know your position.
%% Strange, rated ''poor'' after your mostly glowing post +promo. Even though the US gov budget is poor. Actually that is a good safety feature, hard to delete or change banks. WHO on Gods green earth wants a Treasury or bank or broker that's easy to delete?? Good post/promotion+ my banker dad said;i want to feel the ridges on that notarized paper. LOL+ true Edit ;that'$ another point in favor of Treasury\no credit cards.