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.)”
https://www.treasurydirect.gov/indiv/research/indepth/ibonds…
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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.
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