# I-bond question

Can I-bonds bought in Treasury Direct be redeemed in fraction of the amount they were bought? If I buy \$10,000 at once, could I redeem \$1,000?

That’s not possible with paper bonds, but is it possible with electronic I-bonds?

Wendy

From Treasury Direct…

Electronic bonds in TreasuryDirect

“You can cash a minimum of \$25 or any amount above that in 1-cent increments.
If you cash only a portion of the bond’s value, you must leave at least \$25
in the TreasuryDirect account. Redemptions are comprised of principal and
interest. (In a partial redemption, we pay interest only on the partial amount
you cash.)”

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Can I-bonds bought in Treasury Direct be redeemed in fraction of the amount they were bought? If I buy \$10,000 at once, could I redeem \$1,000?

That’s not possible with paper bonds, but is it possible with electronic I-bonds?

Thanks to auslander for providing information from Treasury Direct showing that the answer to your question is yes - it is indeed possible to partially cash in I-bonds purchased on Treasury Direct.

I would point out that if you are still holding paper bonds, it’s also possible to convert those paper bonds to electronic form, so that you can cash out part of a current paper bond. https://www.treasurydirect.gov/indiv/research/articles/res_i…

AJ

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You can cash a minimum of \$25 or any amount above that in 1-cent increments.

This is really good to know! I’ve been buying my I-bonds in groups (like 5000+5000 or 4000+3000+3000) instead of in chunks of 10000 because I may choose to cash in early on some of it. Now I don’t have to do that anymore! Well, at least from 2023 and on.

Thanks auslander!

I came across something interesting [that may be true] about I-bonds. Posted it here (a page or two down from this post, ironically same title) earlier this morning.

https://discussion.fool.com/i-bond-question-35100570.aspx

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