Entering Series I Bonds

allgoodnamestaken
allgoodnamestaken Member ✭✭✭
edited July 2022 in Investing (Windows)
Hi, I think I have reviewed all of the threads for entering a Series I bond but I'm still confused. I purchased the bonds before setting up anything in Quicken. When the funds for the Bond purchase posted in Quicken Transactions from my Savings Account, why can't I just make a new account: as an example "Series I Bonds" and then transfer the downloaded transaction from the money taken from my Savings Account to Series I Bonds account? This seems easier than the other solutions. Since there is no direct download from TreasuryDirect I'd be entering the interest in manually each time, correct? Why do I need to make a security name, identify shares or maturity date? Thank You

Comments

  • @allgoodmanestaken - you could set up the Series I Bonds using your method, but the only downside I see with this method is if you have a lot of them.  For each Series I Bond, I would set up an offline savings account with the intent of "Investment".  The initial purchase would be the transfer from your savings account.  Each bond then would have their own account on Quicken.
  • allgoodnamestaken
    allgoodnamestaken Member ✭✭✭
    Hi Damian, thank you for the reply. If I do purchase more I Series why can't they just go into the account I created for the first Bond purchase? I thought some of the solutions posted seemed more complicated than needed but I may be overlooking something beneficial in regards to tracking the Bonds? I'm just sure?
  • @allgoodnamestaken - I would keep separate accounts.  Each account then becomes like a security.  Much easier to keep track of in the long run.

    There is no need to create a security for these bonds, in my opinion because they are not priced and will always remain at par value (i.e. always have a price at 1.00).

    Wow, I just checked and the rate for Series I Bonds is now at 9.62%


  • volvogirl
    volvogirl SuperUser ✭✭✭✭✭

    You can enter them in the same account. When you buy one transfer the cost to the Savings Bond account.  If you set it up as an investment account then enter a buy with the cash.


    How are you going to enter the accrued interest? I update my interest only once or twice a year.


    I use the Treasury Dept savings bond page.  They used to have a Saving Bond Wizard program I loved but they discontinued it.   Now they have this, Calculate Saving Bonds

    Individual - Savings Bond Calculator for Paper Bonds 

  • @volvogirl - I agree you can keep them all in one account.  For me I like the separate accounts because I can put specific security information in the account name.

    Do you buy these I Bonds routinely?  It looks like the rate has really gone up.
  • allgoodnamestaken
    allgoodnamestaken Member ✭✭✭
    My original concern was if I was setting up the investment correctly in order to track interest and additional purchases. If I were to purchase another bond, I would wait for the downloaded transaction from my Savings account and again just put in the Account Name I set up for the Bonds and let Quicken add it to the Account. Please let me know if you think I'll run into an issue with this setup? I may be missing something obvious but since this is the first time buying Bonds and adding to Quicken I don't have any experience. As I mentioned originally, there are a few scenario's in the Quicken Community but I had difficulty following their approach and just set it up as simply as I could understand. Thank you.
  • [Deleted User]
    edited June 2022
    I think most of the posts here in the Quicken Community regarding how Series I Bonds work are incorrect.  A lot of people here are confusing regular bonds with savings bonds (Series I Bonds).  They are not the same thing, nor do they act the same way.  Series I Bonds are actually very simple.  They are not tradeable securities. They have no prices; they are always at par value meaning they are aways valued at 1.00 (not 100 like regular bonds, nor do the prices fluctuate like regular bonds).  They are simply meant to be a savings vehicle.  The way you initially wanted to set up the savings bonds as a savings account is actually a good way to do it.  Whether you want to have separate accounts for each savings bond or have just one (like @volvogirl does) is just fine, and either way will work.

    As for posting income, the savings bonds calculate accrued interest every 6 months based on the issue date of your savings bond.  These savings bonds pay a compound rate, meaning a fixed rate plus an inflation rate.  Go to www.treasurydirect.gov to get more details how to calculate your payment amount.  There is a ton of information but click on the "Individuals" tab to find the payment calculator.

    Please, if you ever decide to set up these Series I Bonds as investments, remember one very important thing - they are always priced a 1.00 (dollar par) NOT 100.00.  Never use a bond purchase transaction with a Series I Bond. 
  • [Deleted User]
    edited June 2022
    @allgoodnamestaken - I forgot to also mention that no matter how you set up these Series I Bonds, all transactions are manually posted.  There is no download capability for these savings bonds.  The only transactions needed are the initial transfer (purchase) from your savings account, and the semi-annual accrued interest updates.
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    One advantage of treating the I bonds as securities in a brokerage account is that you can track their maturity dates, which will then appear in the "Maturity Dates for Bonds & CDs" report and will also remind you when the maturity dates are imminent.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription (US) on Win10 Pro.
  • allgoodnamestaken
    allgoodnamestaken Member ✭✭✭
    I agree with Damian, as far as I can see the Buy Bonds setup in Quicken was not intended for Series I for some reason? Maybe Quicken needs to update to accommodate? Really appreciate all the help and comments from the community.
  • @rocket j squirrel you can always put the original and final maturity dates in the notes in Account Details, or if you set up one account per savings bond, you can put the maturity dates the Account Name.  
This discussion has been closed.