I bonds interest rates — TreasuryDirect (2024)

The interest rate on a Series I savings bond changes every 6 months, based on inflation. The rate can go up. The rate can go down.

I bonds earn interest until the first of these events: You cash in the bond or the bond reaches 30 years old.

I bonds earn a combined rate of interest

the interest on I bonds is a combination of

  • a fixed rate
  • a inflation rate

Current Interest Rate

Fixed rate

You know the fixed rate of interest that you will get for your bond when you buy the bond. The fixed rate never changes.

We announce the fixed rate every May 1 and November 1. That fixed rate then applies, for the life of the bond, to all I bonds that we issue during the next 6 months.

The fixed rate is an annual rate.

Inflation rate

The inflation rate changes every 6 months.

We set the inflation rate every May 1 and November 1. We base the inflation rate on changes in the non-seasonally adjusted Consumer Price Index for all Urban Consumers (CPI-U) for all items, including food and energy.

Combined rate

The actual rate of interest for an I bond is calculated from the fixed rate and the inflation rate. The combined rate changes every 6 months. It can go up or down.

I bonds protect you from inflation because when inflation increases, the combined rate increases.

Because inflation can go up or down, we can have deflation (the opposite of inflation). Deflation can bring the combined rate down below the fixed rate (as long as the fixed rate itself is not zero). However, if the inflation rate is so negative that it would pull the combined rate below zero, we don't let that happen. We stop at zero.

The combined rate is sometimes called the "composite rate" or the "earnings rate."

Look at the example below to see how we combine the fixed rate and the inflation rate to get the combined rate.

An example

The composite rate for I bonds issued from May 2024 through October 2024 is 4.28%.

Here's how we got that rate:

Fixed rate 1.30%
Semiannual (1/2 year) inflation rate 1.48%
Composite rate formula: [Fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation rate)] [0.0130 + (2 x 0.0148) + (0.0130 x 0.0148)]
Gives a composite rate of [0.0130 + 0.0296 + 0.0001924]
Adding the parts gives 0.0427924
Rounding gives 0.0428
Turning the decimal number to a percentage gives a composite rate of 4.28%

Interest rate changes depend on when we issued the bond

Although we announce the new rates in May and November, the date when the rate changes for your bond is every 6 months from the issue date of your bond. Use this table to understand when each new rate begins to apply to your I bond.

If we issued your bond in Your interest rate changes every
January July 1 and January 1
February August 1 and February 1
March September 1 and March 1
April October 1 and April 1
May November 1 and May 1
June December 1 and June 1
July January 1 and July 1
August February 1 and August 1
September March 1 and September 1
October April 1 and October 1
November May 1 and November 1
December June 1 and December 1

The interest gets added to the bond's value

I bonds earn interest from the first day of the month you buy them.

Twice a year, we add all the interest the bond earned in the previous 6 months to the main (principal) value of the bond.

That gives the bond a new value (old value + interest earned).

Over the next 6 months, we apply the new interest rate to that entire new value.

This is called semiannually compounding (adding value 2 times a year). That way, your money grows not just from the interest percentage but from the fact that the interest is calculated on a growing balance.

How do you find the current value of an I bond? If the bond is in TreasuryDirect, look in your account there. If the bond is paper, use the Savings Bond Calculator.

Note: For bonds less than 5 years old, values shown in TreasuryDirect and the Calculator don’t include the last 3 months of interest. That’s because if you cash a bond before 5 years, we don’t pay you the final 3 months of interest.

What have interest rates been for I bonds?

We've put all the rates together in one chart – fixed rate, inflation rate, and combined rate. You can look up a specific bond there and see its entire history. You will probably have to enlarge the chart to view a particular row. We also have a Series I Bond rate history chart.

Below, we show you historical rates in separate tables.

Fixed rates

The fixed rate that we set each May and November applies to all bonds we issue in the 6 months following the date when we set the rate. The fixed rate applies for the life of the bond.

Date the fixed rate was set Fixed rate for bonds issued in the six months after that date
May 1, 2024 1.30%
November 1, 2023 1.30%
May 1, 2023 0.90%
November 1, 2022 0.40%
May 1, 2022 0.00%
November 1, 2021 0.00%
May 1, 2021 0.00%
November 1, 2020 0.00%
May 1, 2020 0.00%
November 1, 2019 0.20%
May 1, 2019 0.50%
November 1, 2018 0.50%
May 1, 2018 0.30%
November 1, 2017 0.10%
May 1, 2017 0.00%
November 1, 2016 0.00%
May 1, 2016 0.10%
November 1, 2015 0.10%
May 1, 2015 0.00%
November 1, 2014 0.00%
May 1, 2014 0.10%
November 1, 2013 0.20%
May 1, 2013 0.00%
November 1, 2012 0.00%
May 1, 2012 0.00%
November 1, 2011 0.00%
May 1, 2011 0.00%
November 1, 2010 0.00%
May 1, 2010 0.20%
November 1, 2009 0.30%
May 1, 2009 0.10%
November 1, 2008 0.70%
May 1, 2008 0.00%
November 1, 2007 1.20%
May 1, 2007 1.30%
November 1, 2006 1.40%
May 1, 2006 1.40%
November 1, 2005 1.00%
May 1, 2005 1.20%
November 1, 2004 1.00%
May 1, 2004 1.00%
November 1, 2003 1.10%
May 1, 2003 1.10%
November 1, 2002 1.60%
May 1, 2002 2.00%
November 1, 2001 2.00%
May 1, 2001 3.00%
November 1, 2000 3.40%
May 1, 2000 3.60%
November 1, 1999 3.40%
May 1, 1999 3.30%
November 1, 1998 3.30%
September 1, 1998 3.40%

Inflation rates

The inflation rate that we set each May and November applies for 6 months to all I bonds that we ever issued.

Date the inflation rate was set Inflation rate for all I bonds issued for six months (starting in that bond's next interest start month - see the table of months higher on this page)
May 1, 2024 1.48%
November 1, 2023 1.97%
May 1, 2023 1.69%
November 1, 2022 3.24%
May 1, 2022 4.81%
November 1, 2021 3.56%
May 1, 2021 1.77%
November 1, 2020 0.84%
May 1, 2020 0.53%
November 1, 2019 1.01%
May 1, 2019 0.70%
November 1, 2018 1.16%
May 1, 2018 1.11%
November 1, 2017 1.24%
May 1, 2017 0.98%
November 1, 2016 1.38%
May 1, 2016 0.08%
November 1, 2015 0.77%
May 1, 2015 -0.80%
November 1, 2014 0.74%
May 1, 2014 0.92%
November 1, 2013 0.59%
May 1, 2013 0.59%
November 1, 2012 0.88%
May 1, 2012 1.10%
November 1, 2011 1.53%
May 1, 2011 2.30%
November 1, 2010 0.37%
May 1, 2010 0.77%
November 1, 2009 1.53%
May 1, 2009 -2.78%
November 1, 2008 2.46%
May 1, 2008 2.42%
November 1, 2007 1.53%
May 1, 2007 1.21%
November 1, 2006 1.55%
May 1, 2006 0.50%
November 1, 2005 2.85%
May 1, 2005 1.79%
November 1, 2004 1.33%
May 1, 2004 1.19%
November 1, 2003 0.54%
May 1, 2003 1.77%
November 1, 2002 1.23%
May 1, 2002 0.28%
November 1, 2001 1.19%
May 1, 2001 1.44%
November 1, 2000 1.52%
May 1, 2000 1.91%
November 1, 1999 1.76%
May 1, 1999 0.86%
November 1, 1998 0.86%
September 1, 1998 0.62%

Current composite rates

The table below shows the current composite rate for all I bonds. Each composite rate is a yearly rate that applies for 6 months.

Period when you bought your I bond Composite rate for your 6 month earning period starting during May 2024 through October 2024
From Through
May 2024 Oct. 2024 4.28%
Nov. 2023 Apr. 2024 4.28%
May 2023 Oct. 2023 3.87%
Nov. 2022 Apr. 2023 3.37%
May 2022 Oct. 2022 2.96%
Nov. 2021 Apr. 2022 2.96%
May 2021 Oct. 2021 2.96%
Nov. 2020 Apr. 2021 2.96%
May 2020 Oct. 2020 2.96%
Nov. 2019 Apr. 2020 3.16%
May 2019 Oct. 2019 3.47%
Nov. 2018 Apr. 2019 3.47%
May 2018 Oct. 2018 3.26%
Nov. 2017 Apr. 2018 3.06%
May 2017 Oct. 2017 2.96%
Nov. 2016 Apr. 2017 2.96%
May 2016 Oct. 2016 3.06%
Nov. 2015 Apr. 2016 3.06%
May 2015 Oct. 2015 2.96%
Nov. 2014 Apr. 2015 2.96%
May 2014 Oct. 2014 3.06%
Nov. 2013 Apr. 2014 3.16%
May 2013 Oct. 2013 2.96%
Nov. 2012 Apr. 2013 2.96%
May 2012 Oct. 2012 2.96%
Nov. 2011 Apr. 2012 2.96%
May 2011 Oct. 2011 2.96%
Nov. 2010 Apr. 2011 2.96%
May 2010 Oct. 2010 3.16%
Nov. 2009 Apr. 2010 3.26%
May 2009 Oct. 2009 3.06%
Nov. 2008 Apr. 2009 3.67%
May 2008 Oct. 2008 2.96%
Nov. 2007 Apr. 2008 4.18%
May 2007 Oct. 2007 4.28%
Nov. 2006 Apr. 2007 4.38%
May 2006 Oct. 2006 4.38%
Nov. 2005 Apr. 2006 3.97%
May 2005 Oct. 2005 4.18%
Nov. 2004 Apr. 2005 3.97%
May 2004 Oct. 2004 3.97%
Nov. 2003 Apr. 2004 4.08%
May 2003 Oct. 2003 4.08%
Nov. 2002 Apr. 2003 4.58%
May 2002 Oct. 2002 4.99%
Nov. 2001 Apr. 2002 4.99%
May 2001 Oct. 2001 6.00%
Nov. 2000 Apr. 2001 6.41%
May 2000 Oct. 2000 6.61%
Nov. 1999 Apr. 2000 6.41%
May 1999 Oct. 1999 6.31%
Nov. 1998 Apr. 1999 6.31%
Sept. 1998 Oct. 1998 6.41%
I bonds interest rates — TreasuryDirect (2024)

FAQs

What will the next I bond rate be in 2024? ›

May 1, 2024. Series EE savings bonds issued May 2024 through October 2024 will earn an annual fixed rate of 2.70% and Series I savings bonds will earn a composite rate of 4.28%, a portion of which is indexed to inflation every six months.

What is the downside of an I bond? ›

Cons of Buying I Bonds

I bonds are meant for longer-term investors. If you don't hold on to your I bond for a full year, you will not receive any interest. You must create an account at TreasuryDirect to buy I bonds; they cannot be purchased through your custodian, online investment account, or local bank.

What is the current I bond interest rate? ›

The current composite I bond rate is 4.28%. This includes a 1.30% fixed rate and a 1.48% inflation rate. The current rate applies for six months to bonds purchased between May 1, 2024, and Oct. 31, 2024.

Are I bonds worth the hassle? ›

Whether I bonds make sense for you depends on your goals. If you only want to beat inflation, they'll ensure that you succeed. But if their $15,000 annual investment ceiling, withdrawal restrictions and interest rate uncertainty are turn offs, there are alternatives.

Can I buy $10,000 worth of I bonds every year? ›

Paper I bonds are only available in multiples of $50.” There are also limits on how many I bonds you can buy each year. Individual purchase limits for I bonds are $15,000 per calendar year — $10,000 worth of electronic I bonds and $5,000 worth of paper I bonds.

How long should you hold series I bonds? ›

Can I cash it in before 30 years? You can cash in (redeem) your I bond after 12 months. However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest.

What happens to I bond after 6 months? ›

The interest rate on a Series I savings bond changes every 6 months, based on inflation. The rate can go up. The rate can go down. I bonds earn interest until the first of these events: You cash in the bond or the bond reaches 30 years old.

Do I pay taxes on I bonds? ›

Is interest income from I bonds taxed as capital gains? No, the interest income earned from I bonds is not considered a capital gain and is therefore taxed differently. Instead, it is taxed as regular income at the federal level and exempt from state and local taxes.

Are series I bonds a good investment right now? ›

I bonds issued from May 1, 2024, to Oct. 31, 2024, have a composite rate of 4.28%. That includes a 1.30% fixed rate and a 1.48% inflation rate. Because the U.S. government backs I bonds, they're considered relatively safe investments.

Is there anything better than I bonds? ›

TIPS offer greater liquidity and the higher yearly limit allows you to stash far more cash in TIPS than I-bonds. If you're saving for education, I-bonds may be the way to go.

Can you ever lose money on an I bond? ›

Answer: No. In periods of deflation, the bond's redemption value won't decline.

What are the disadvantages of TreasuryDirect? ›

Securities purchased through TreasuryDirect cannot be sold in the secondary market before they mature. This lack of liquidity could be a disadvantage for investors who may need to access their investment capital before the securities' maturity.

What will the interest rates be at the end of 2024? ›

During the Fed's June 2024 rate-setting meeting, policymakers voted again to hold the target range steady at 5.25% to 5.5%, and it appears the central bank has finished its tightening cycle.

What is the bond yield for 2024? ›

The interest rate determined for fiscal year 2024 in accordance with the above-quoted formula is 4.0332% which adjusted to the nearest 1/8 of 1% is 4%.

What is the inflation rate in 2024? ›

On the basis of these inflation forecasts, average consumer price inflation should be 3.2% in 2024 and 2.0% in 2025, compared to 4.06% in 2023 and 9.59% in 2022.

What is the 6 month Treasury bill rate? ›

6 Month Treasury Bill Rate is at 5.11%, compared to 5.12% the previous market day and 5.27% last year. This is higher than the long term average of 4.49%. The 6 Month Treasury Bill Rate is the yield received for investing in a US government issued treasury bill that has a maturity of 6 months.

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