I-Bonds Discussion Thread (continuation of the FW thread)

Now this is something new. How can this be requested? Any experience?

Doh! I went back to the info I had looked at previously, and I had misread it. Ignore that part. :zipper_mouth_face:

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Right. I think this scheme only became worthy of consideration when the I bond interest rate went nuts. Prior: not worth the hassle.

Well, of course many of us can bank a small profit when the fee is slightly less than 2%. So this is not an issue for many. I mean, I do stuff like that all the time . . . for profit. It’s routine.

I agree. As I posted earlier, the IRS just announced filing season is open on 24th of January. You may file any time thereafter. It’s not long to wait.

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Thank you for that, glitch99. I was unaware and your post is very helpful. So if I understand you correctly, related to the I bond scheme under discussion here:

If I overpay to snag my $5k in I bonds, and if I “over-overpay” to be certain of having at least $5K available to buy my I bonds, then:

If I’m reading you right there will be interest paid on my “over-overpayment” for the return of which I might have to wait a long time (refer to @scripta’s dilemma posted elsewhere on this forum). If they (the IRS) pay me interest it makes the wait a bit less burdensome and bothersome.

Thanks again for posting. I was unaware of the interest.

They have something like 45 days to send the refund, and then interest begins accruing. I’m sure there can be context as to why the refund is delayed that might exempt it from interest, but I’d assume those scenarios mostly revolve around claims of fraud. I’d consider the biggest risk factor to be the possiblity of a delay pushing your bond purchase into the next 6-month rate block, missing out on the current 7% rate period.

BTW, the rate was right about 3.5%. And I’m pretty sure there’s a way to intentionally prompt such a hold, not that I’d suggest using the IRS as a high yield savings account substitute.

here is what the article by “pro” says about having the ibonds directly deposited into your treasury direct account. It’s obviously a showstopper for anyone who’s doing this to purchase above the $10,000 limit.

If only they ask for your TreasuryDirect account number on the tax return, they won’t have to mail you the bonds and you won’t have to mail them back in. While it is possible to direct deposit part of your tax refund into your TreasuryDirect account using a special routing number, when you use the money to buy I Bonds, you use up part of your $10,000/year quota, which defeats the whole purpose of overpaying taxes to buy additional I Bonds. Again, the government has no incentive to make it easy. If you want more I Bonds, you’ll have to tolerate their process.


as I mentioned do not do this to get around the $10,000 limit but if you want to use your refund to buy as part of the $10k here’s a link to how to do it

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Please read more carefully what “pro” wrote and also read @scanchain’s post. This scheme does enable you to exceed the $10,000 limit, however there is a catch:

You are limited to $10,000/year of “electronic” bonds, and Form 8888 cannot get you above that limit. However, Form 8888 can help you obtain an additional $5000 of bonds in paper form. @scanchain wrote about this and it is confirmed in several places.

Once you have your $5000 in paper I bonds you have a decision to make:

  • you may convert your paper I bonds into electronic form, or
  • you may just hang onto the paper

Point is, as @scanchain pointed out, it’s a nuisance to have to do the conversion . . . . but it’s also certainly not impossible.

As I wrote earlier, for lesser interest rates it might not be as attractive to do the work and snag an extra $5000 in I bonds. But with today’s rates, and then considering the most recent data is telling us inflation just hit new, even higher, highs, more people will be drawn to this option and I think I will be among them.

Certainly you will want to file ASAP with the hope your first six months will be at 7.5%. But given inflation continues to rise, even this spring’s rate reset should leave you in darn nice shape on your I bonds bought this way.

Thanks for that additional help. I can certainly live with 3.5% if I must. This matter is coalescing for me and I do smell opportunity. Gotta get my entire act together by next Tuesday as I prefer not to file a supplemental payment after the new tax season opens. Want instead to do this in the “normal course of business” and include my overpayment in my routine quarterly tax payment.

I was looking for a way to have the iBonds from the refund directly deposited into my treasury direct account. It is not worth it to me to fool around with paper bonds. Particularly with the IRS being very short staffed and possibly treasury direct also.

I do not know how to do that. However, I can offer this:

How To Deposit Paper I Bonds into TreasuryDirect Online Account

This is not for those seeking to avoid learning something new or seeking to avoid work. There is money to be made. But the US Treasury does not spoon feed. You have to put in a bit of effort:

Paper I bond conversions for first timers

That is an excellent tutorial/cookbook which explains in detail how to “git 'er done”.


I acknowledge not everyone will want to do a conversion. It’s a personal decision and there is no “one size fits all”. Also, importantly:

Once you have converted from paper to electronic there is no going back. Such conversions are irreversible.

For me personally I plan to do the conversion. I want all my I bonds in the same place and that outcome is achievable. But I am certainly respectful of those having a different preference.


I have been buying iBonds for many years and a few years back I converted the paper bonds to electronic form. It was stressful to me to put bonds worth many thousands of dollars into the mail and hoping that they would be processed correctly if and when they got to the treasury. It did work out OK but it’s not something I want to repeat. So as you said, to each his own.

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Note that this is in fact a really simple process (I did this with a couple old bonds I had kicking around, just last fall). The biggest hassle - besides having to type in each serial number - is that the paper bonds you send in are then maintained on a separate line in your TD account totals.

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You can actually combine the account so they aren’t on a different line. The information is here: treasurydirect conversion account transfer question - Bogleheads.org


Fantastic! I’ll have to put that on my to-do list.

Correct. Detailed instructions on how to do that are part of the reference I posted, toward the end.

This, from the guy with the mountain of paper CD certs. :face_with_monocle: It’s just a joke. I appreciate all of the info you continue to provide for fully insured / govt backed securities.

I’m not sure why that would be stressful. If the bonds are lost or stolen, the treasury will just give you new copies of them:



You may be able to get paper bonds replaced, but dealing with the govt. can be a pain. I also was stressed when I mailed in my paper bonds several years ago. It did all go fine and now all mine are electronic. I just purchased our family max for 2022 today.



Here’s what the treasury website says about the process to replace lost or stolen paper bonds

What should I do if my paper savings bond has been lost, stolen, or destroyed?

Fill out and sign FS Form 1048 (download or order) according to the form’s instructions and mail it to the address provided on the form.

We need the following information before searching for the record of your bond :

  • Bond serial number – If you don’t have the bond serial number, provide all of the following:
    • Specific month and year of purchase
    • Complete Social Security Number (for example 123-45-6789)
    • Names, including middle names or initials
    • Address (street, city, state)

We can replace your savings bonds if we can establish that a person entitled to cash the bonds hasn’t done so. See Replacing or Reissuing a Lost or Destroyed Paper EE Bond.

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Got 'em!! :grinning:

My first tranche of 2022 I Bonds is safely in hand as of this morning. The money was ACHed out of my checking and I can see the bond buy at Treasury Direct. This is a happy event, however:

That, as the saying goes, was the “easy part”. :wink:

Ahead lies the scramble to finagle yet another five grand of these 2022 I Bond beauties, courtesy of the IRS. And I don’t even have all my 1099 statements yet so am unable to file.

Still, it’s all a good challenge. There is not a dull moment in this life. :sweat: