Your Oct 2013 I‑Bond
Issued Oct 2013 with a 0.00% fixed rate for life. Here's what it's worth today, and whether to hold it, redeem it, or switch to TIPS - after taxes and the early-redemption penalty.
Tax is deferred - you receive the full amount at redemption and pay on your next return.
Fetching latest Treasury yields…
Value over time (value so far + after-tax projections, $10,000 bond)
The light line is this bond's pre-tax value. The Net lines are what you'd actually pocket, after federal tax and after the early-redemption penalty that applies below 5 years. That penalty is why the Net lines run well under the light one through year 5 and step up the month the bond turns 5. Net (Hold) keeps this bond; Net (Rebuy I‑Bond) and Net (Switch to TIPS) cash out today and reinvest, which is why all three meet at today's redeem value. Endpoints match the strategy table below.
What should you do with it?
After-tax value of this bond under each strategy, at your assumptions above.
| Strategy | Terminal Value | Annualized | vs Hold |
|---|