iBonds: Current Series-I Bond rates

November 1, 2023 Announcement: The Bureau of the Public Debt announced¹ earnings rates for Series I Savings Bonds and Series EE Savings Bonds, issued from November 1, 2023 through April 30, 2023 .

I bond fixed rates are determined each May 1 and November 1. Each fixed rate applies to all I-bonds issued in the six months following the rate determination.

The composite (total for the next six months) earnings rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the life of the bond, and the semiannual inflation rate.

"The composite rate combines a 1.30% fixed rate of return with the 1.97% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The CPI-U increased from 301.836 in March 2023 to 307.789 in September 2023, a six-month change of 1.97%.

When the inflation rate is less than zero, the earnings rate will be less than the fixed rate but never less than zero. Calculation Link.

Fixed rate = 1.30%
6 month Inflation rate = +1.97%
Composite rate =[fixed rate + (2 x inflation rate) + (fixed rate x inflation rate)]
[0.0130 + (2 x 0.0197 + (0.0130 x 0.0197)]
[0.0130 + 0.0394 + 0.0002561]
0.0526561 (with rounding)
0.0527 x 100% = +5.27%

==> Thus, the current I Bond Composite Earnings Rate is 5.27% with a fixed rate of 1.30%

==> Composite Rates for Older Series I Bonds & I-Bond Base & Composite Rate History

==> I cover I-Bonds and a slightly better recommended alternative (just as safe with higher yield but without the tax deferral so better for IRAs) in my newsletter. <==

==> NEVER lose money with I Bonds: The combined rate will never be less than 0. However, the combined rate can be lower than the fixed rate. If the inflation rate is negative (because we have deflation, not inflation), it can offset some of the fixed rate. If the inflation rate is so negative that it would take away more than the fixed rate, the 6-month combined rate stops at 0.00%.
More about Series I Bonds:

More about Series I Bonds:

When the inflation rate is less than zero, a bond's earnings rate is less than its fixed rate (but the earnings rate is never less than zero).

Historical CPI-U Table - More about I-Bonds

The fixed rate applies for the 30-year life of I bonds purchased during this six-month period.

Earnings rates for I bonds are set each May 1 and November 1. Interest accrues monthly and compounds semiannually. Bonds held less than five years are subject to a three-month interest penalty. I Bonds have an interest-bearing life of 30 years.

For older i-bonds and what they will pay, see: I Bond Composite Rates (iBonds)

Note 1: Press Releases: http://www.treasurydirect.gov/news/news.htm

Minimum purchase:

$25 for a $25 I bond when purchased electronically via TreasuryDirect

Maximum purchase(per calendar year):

$10,000 total per social security number

Denominations:

Electronic bonds via Treasury Direct: purchase to the penny from $25 to $10,000. For example, with electronic bonds, you could buy an I Bond for $50.23.

How do I buy an I Bond? Electronic: Through your TreasuryDirect account

TreasuryDirect.gov > Products in Depth > I Savings Bonds

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	Series I Savings Bonds Current iBond Rate = 5.27%
	I-Bond Base & Composite Rate History Return to KirkLindstrom.com home page