4 ms·
I bonds in particular cannot be cashed out before 12 months, and before 5 years there is a penalty. Bonds are not covered by FDIC insurance and can default (tho
by benmanns 5y ago
I bonds in particular cannot be cashed out before 12 months, and before 5 years there is a penalty. Bonds are not covered by FDIC insurance and can default (though less relevant for US Treasury bonds which can print USD and more relevant for corporate/foreign bonds).
- ballenf 5y agoWhat stops you selling them to someone else?
- jaywalk 5y agoThey're issued to you, and have your name on them.
- benmanns 5y agoI bonds in particular are closer to a CD and are not transferable. If you have access to credit, you could borrow and pay it back once your I bond matures is cashable. Other Treasury notes can be sold, though if rates go up you may get back less than your principal, particularly on the longer duration notes.
- deleted 5y ago[deleted]
- rajup 5y agoTreasury rules? No redeeming for 1 year, and redeeming before 5 years means you lose the last 3 months of interest. You can gift them to other people though.
- edge17 5y agoNothing, you can buy and sell them in the secondary market.