I bonds and treasury

{{whyLabel}}: I-Bonds have a mandatory 12-month lock-up period where funds are completely inaccessible.

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• Calculate 3–6 months of essential living expenses.
• Identify 'lazy' cash in standard savings accounts earning less than 3.5%.
• Ensure any money moved to I-Bonds is not needed for at least one year.

{{doneWhenLabel}}: [You have a specific dollar amount identified for long-term safe investment].

{{whyLabel}}: TreasuryDirect is the only official platform to buy I-Bonds directly from the government.

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• Confirm you have a valid Social Security Number (SSN) or Employer Identification Number (EIN).
• Ensure you have a primary U.S. residence address.
• Have a U.S.-based bank account ready for Automated Clearing House (ACH) transfers.

{{doneWhenLabel}}: [Eligibility confirmed and bank routing/account numbers are on hand].

{{whyLabel}}: The current rate (valid through April 30, 2026) consists of a 0.90% fixed rate and a 3.12% inflation-indexed variable rate.

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• Note that the 0.90% fixed rate stays with the bond for its 30-year life.
• Compare this 'real yield' (return above inflation) to historical 0% fixed rates.
• Factor in the 3-month interest penalty if you redeem before 5 years.

{{doneWhenLabel}}: [You have calculated the expected 12-month return including the early withdrawal penalty].

{{whyLabel}}: Treasury Bills (T-Bills) currently offer around 3.7% for 13-week terms, providing higher liquidity than I-Bonds.

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• Check the latest auction results on the official Treasury website.
• Evaluate 'laddering' (buying bills that mature at different times) to maintain cash flow.
• Note that T-Bills have no lock-up period and can be sold on the secondary market if needed.

{{doneWhenLabel}}: [You have decided on a split between I-Bonds for inflation protection and T-Bills for liquidity].

{{whyLabel}}: Both I-Bonds and T-Bills are exempt from state and local income taxes, which increases their effective yield in high-tax states.

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• Use the formula: Equivalent Yield = Nominal Yield / (1 - State Tax Rate).
• Compare this result to High-Yield Savings Accounts (HYSA) which are fully taxable at the state level.
• For a 5% state tax, a 4.03% Treasury yield is equivalent to a 4.24% taxable bank yield.

{{doneWhenLabel}}: [You know the 'true' yield of Treasuries compared to your local bank options].

{{whyLabel}}: This is the mandatory portal for managing non-marketable savings bonds.

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• Visit the official government site and select 'Open an Account'.
• Complete the 3-step process: Choose account type, provide personal info, and set up security (password/security questions).
• Note: If you receive a 'Mailed-in Authorization' form (FS Form 5444), you must get it certified by a financial institution.

{{doneWhenLabel}}: [Account is active and you have received your account number via email].

{{whyLabel}}: You are limited to $10,000 in electronic purchases per calendar year.

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• Log in and select 'BuyDirect'.
• Choose 'Series I' and enter the amount (minimum $25).
• Select your linked bank account as the funding source.
• Schedule the purchase to occur immediately to lock in the current 4.03% rate.

{{doneWhenLabel}}: [Purchase confirmation received and bonds appear in your 'Current Holdings'].

{{whyLabel}}: T-Bills are bought at a discount through a weekly auction process.

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• Select 'BuyDirect' and choose 'Bills'.
• Select the term (e.g., 4-week, 13-week, or 26-week).
• Enter the purchase amount (multiples of $100).
• Choose 'Non-competitive' bidding to ensure you get the average yield of the auction.

{{doneWhenLabel}}: [Auction bid is submitted and scheduled for the next available date].

{{whyLabel}}: The Treasury announces new I-Bond inflation and fixed rates twice a year.

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• Add calendar alerts for April 15 and October 15 to check 'inflation predictions' based on CPI-U data.
• Use this data to decide if you should buy more bonds before a rate drop or wait for a rate increase.
• Monitor the 'Fixed Rate' specifically, as it is the most valuable long-term component.

{{doneWhenLabel}}: [Calendar alerts are active for the next 12 months].

{{whyLabel}}: Automating reinvestment prevents cash from sitting idle at 0% interest after a bill matures.

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• Go to 'ManageDirect' in your account.
• Select 'Schedule Repeat Purchases' for your T-Bills.
• You can set up to 25 automatic reinvestments.
• Review these settings if market interest rates drop significantly below bank rates.

{{doneWhenLabel}}: [Reinvestment instructions are confirmed for all active T-Bills].