Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

I-Bond Rate, 5/1/22-10/31/22



  • edited October 2022
    "When it comes to Schwab, Schwab Bank is a real, FDIC-insured bank, separate from but affiliated with the broker-dealer Charles Schwab & Co. "Affiliated" here means that they are both owned by the same parent company, The Charles Schwab Corporation.
    But the Schwab One brokerage account (as opposed to the HY checking account) appears to operate as a pseudo "bank" account. The account disclosure says that "Checking account and Debit Card services provided by the Bank". And it defines "Bank" to be "BNY Mellon Investment Servicing Trust (IST) Company and/or its affiliates, the entity responsible for administering the Bank Services.""

    After the launch of Schwab Bank & HY Checking linked to brokerage, I didn't see the point of using old Schwab One brokerage checks and had NO activity with them for more than a decade. Recently, I got a notice from Schwab that this old Schwab One checking facility (and related debit card) would be cancelled IF NOT USED by 10/18/22 (that is 2 days from now). I will just let it go. I did call Schwab to confirm that this in no way affected services connected with Schwab Bank (checks, debit, bank links) and they confirmed so. Other Schwab account holders with similar notices may act differently.
  • Schwab seems to require a brokerage account to have checkwriting in order to use its bill pay feature. (At least it did in 2018, which is the date on this Schwab One bill pay enrollment form.)

    It's interesting that Schwab is actively removing cash management services from customers' brokerage accounts while still promoting these brokerage account features. See here (current as of 9/30/22):
  • Treasury Direct FAQs say that Friday October 28, 2022 will be the last day for the current 9.62% rate. Beyond that, lower November 1 rate will apply.
  • To add to @yogibearbull’s comment above,
    For I Bonds, the September report was the last of a six-month series that will set the I Bond’s new annualized variable rate, which will go into effect for I Bonds purchased from November 2022 to April 2023. Inflation increased 3.24% over that period, so the I Bond’s new variable rate will be 6.48%
    The new rate is still very respectable.

  • What happens at month 6? Are there not requirements to hold 1 year and 5y for no early-withdrawal fee?
  • What happens at month 6? Are there not requirements to hold 1 year and 5y for no early-withdrawal fee?

    12-mo/5-yr restrictions remain. At the 6 mo from the purchase date, only the rate will adjust to then current rate.

    There are media reports that the shaky Treasury Direct site has been ON/OFF due to very heavy last minute demand for I-Bonds before the rate flips lower. TD has already put a FAQs that says that the last day to get the current 9.62% rate is 10/28/22 (not 10/31/22 as one might have expected) with the condition that order confirmation from TD must be received by that date (i.e. order early even on that day). The word in the media is that the last date may practically be Oct 26-27 due to shaky TD site and the lack of staff and resources at TD. A sad state of affairs at TD/Treasury, IMO.

  • worked like a charm last night
Sign In or Register to comment.