Your Jan 2025 I‑Bond
Issued Jan 2025 with a 1.20% 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 your bond's pre-tax value. The three Net lines are what you'd actually pocket cashing out at each point - after federal tax, and after the early-redemption penalty while the bond is under 5 years old (which is why Net (Hold) sits lower through year 5 and steps up the moment it turns 5, and why all three meet at today's redeem value). Net (Hold) keeps this bond; Net (Rebuy I‑Bond) and Net (Switch to TIPS) redeem today and reinvest. Projection 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 |
|---|