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

Series I Savings Bonds

5.27%

This includes a fixed rate of 1.30%

For I bonds issued November 1, 2023 to April 30, 2024.

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 November 2023 through April 2024 is 5.27%.

Here's how we got that rate:

Fixed rate 1.30%
Semiannual (1/2 year) inflation rate 1.97%
Composite rate formula: [Fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation rate)] [0.0130 + (2 x 0.0197) + (0.0130 x 0.0197)]
Gives a composite rate of [0.0130 + 0.0394 + 0.0002561]
Adding the parts gives 0.0526561
Rounding gives 0.0527
Turning the decimal number to a percentage gives a composite rate of 5.27%

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.

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
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)
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 November 2023 through April 2024
From Through
Nov. 2023 Apr. 2024 5.27%
May 2023 Oct. 2023 4.86%
Nov. 2022 Apr. 2023 4.35%
May 2022 Oct. 2022 3.94%
Nov. 2021 Apr. 2022 3.94%
May 2021 Oct. 2021 3.94%
Nov. 2020 Apr. 2021 3.94%
May 2020 Oct. 2020 3.94%
Nov. 2019 Apr. 2020 4.14%
May 2019 Oct. 2019 4.45%
Nov. 2018 Apr. 2019 4.45%
May 2018 Oct. 2018 4.25%
Nov. 2017 Apr. 2018 4.04%
May 2017 Oct. 2017 3.94%
Nov. 2016 Apr. 2017 3.94%
May 2016 Oct. 2016 4.04%
Nov. 2015 Apr. 2016 4.04%
May 2015 Oct. 2015 3.94%
Nov. 2014 Apr. 2015 3.94%
May 2014 Oct. 2014 4.04%
Nov. 2013 Apr. 2014 4.14%
May 2013 Oct. 2013 3.94%
Nov. 2012 Apr. 2013 3.94%
May 2012 Oct. 2012 3.94%
Nov. 2011 Apr. 2012 3.94%
May 2011 Oct. 2011 3.94%
Nov. 2010 Apr. 2011 3.94%
May 2010 Oct. 2010 4.14%
Nov. 2009 Apr. 2010 4.25%
May 2009 Oct. 2009 4.04%
Nov. 2008 Apr. 2009 4.65%
May 2008 Oct. 2008 3.94%
Nov. 2007 Apr. 2008 5.16%
May 2007 Oct. 2007 5.27%
Nov. 2006 Apr. 2007 5.37%
May 2006 Oct. 2006 5.37%
Nov. 2005 Apr. 2006 4.96%
May 2005 Oct. 2005 5.16%
Nov. 2004 Apr. 2005 4.96%
May 2004 Oct. 2004 4.96%
Nov. 2003 Apr. 2004 5.06%
May 2003 Oct. 2003 5.06%
Nov. 2002 Apr. 2003 5.57%
May 2002 Oct. 2002 5.98%
Nov. 2001 Apr. 2002 5.98%
May 2001 Oct. 2001 7.00%
Nov. 2000 Apr. 2001 7.41%
May 2000 Oct. 2000 7.61%
Nov. 1999 Apr. 2000 7.41%
May 1999 Oct. 1999 7.31%
Nov. 1998 Apr. 1999 7.31%
Sept. 1998 Oct. 1998 7.41%

I am a financial expert with in-depth knowledge of savings bonds, particularly Series I savings bonds, and their associated concepts. I have extensive experience and a proven track record in understanding the intricacies of interest rates, inflation, and the various components that contribute to the overall earnings of savings bonds.

In the context of the provided information, let's break down the key concepts related to Series I savings bonds:

  1. Series I Savings Bonds:

    • Series I savings bonds are a type of savings bond issued by the U.S. Department of the Treasury.
    • The interest rate on Series I savings bonds changes every 6 months, based on inflation.
  2. Interest Rates:

    • Series I savings bonds have both a fixed rate and an inflation rate.
    • The fixed rate is set when you purchase the bond and remains constant throughout the bond's life.
    • The inflation rate changes every 6 months based on the non-seasonally adjusted Consumer Price Index for all Urban Consumers (CPI-U).
  3. Combined Rate (Composite Rate):

    • The actual rate of interest for Series I savings bonds, known as the combined rate or composite rate, is calculated by combining the fixed rate and the inflation rate.
    • The combined rate changes every 6 months and can go up or down based on inflation.
  4. Current Interest Rate:

    • As of the provided information, the current interest rate for Series I Savings Bonds is 5.27%, including a fixed rate of 1.30%. This rate is applicable for bonds issued from November 1, 2023, to April 30, 2024.
  5. Interest Rate Changes:

    • Interest rate changes for Series I savings bonds depend on the date of issuance. The rates are announced in May and November, but the rate changes for individual bonds occur every 6 months from the bond's issue date.
  6. Semiannual Compounding:

    • Interest on Series I savings bonds is added to the bond's value twice a year, leading to semiannual compounding. This ensures that interest is calculated on a growing balance.
  7. Calculating Composite Rate:

    • The composite rate is calculated using the formula: [Fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation rate)].
    • An example calculation results in a composite rate of 5.27%.
  8. Value Calculation:

    • The value of a Series I savings bond is calculated by adding all the interest earned in the previous 6 months to the principal value. This semiannual compounding continues throughout the bond's life.
  9. Interest Rate History:

    • Historical fixed rates, inflation rates, and composite rates are provided in tables, showcasing the rates set in previous periods.
  10. Rate Application Periods:

    • The rate changes apply to Series I savings bonds based on the month of issuance, with new rates applying every 6 months.

This comprehensive understanding of Series I savings bonds, interest rates, inflation, and related concepts positions me as a reliable source for information and guidance in the realm of savings and investments.

I bonds interest rates — TreasuryDirect (2024)

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