My $5,000 I-Bond online purchase looks like it went off today without a hitch at Treasury Direct. Well, almost. I didn’t pay attention to my BillPay along with my checking account balance and I ended up going below the $1,000 minimum on my Presidential checking account. Doh! At least it’s only a $5 low-balance fee and not a bounced check.
There was also a good question about partial redemptions of Savings Bonds – If you withdraw any of it early (less than 5 years), will you be paying a penalty on all future withdrawals, even if you wait more than 5 years? I e-mailed them (they don’t seem to have a phone number?), and the answer I got was no. Here’s my e-mail and their response:
I have a question regarding the partial redemption available now on electronic Savings Bonds. If, for example, I have a $5,000 I-Bond from which I make a partial redemption of $1000 after twelve months, will the 3-month interest penalty applied to the withdrawn $1,000 also apply to the remaining $4,000 balance, even if I wait the full 30 years to take out the remaining $4,000?
The response from TreasuryDirect:
The 3 month interest penalty will only apply to the partial amount you redeem.
Customer Service Specialist