# What is the fixed rate on I bonds?

## What is the fixed rate on I bonds?

9.62%
Effective today, Series EE savings bonds issued May 2022 through October 2022 will earn an annual fixed rate of 0.10%. Series I savings bonds will earn a composite rate of 9.62%, a portion of which is indexed to inflation every six months.

Does the interest rate on I bonds change?

Not necessarily. The rate on your I bond changes every six months and may be higher now than at first. Example: In May 2021, a new I bond had a rate of 3.54 percent. In November 2013, a new I bond had a rate of 1.38 percent.

What will the I bond rate be in May 2022?

The maximum purchase limit per person for electronic I bonds is \$10,000 per year, and the maximum purchase limit for paper I bonds is \$5,000 per year. In early May, the Treasury announced that the composite rate for I bonds issued from May 2022 through October 2022 is 9.62%.

### What was the previous I bond rate?

Fixed rates

Date the fixed rate was set Fixed rate for bonds issued in the six months after that date
November 1, 2018 0.50%
May 1, 2018 0.30%
November 1, 2017 0.10%
May 1, 2017 0.00%

What will I bond rate be in May?

At an initial rate of 9.62%, buying an I bond in May gets 7.5% more compared to the 2.07% 12-month treasury rate (5/2/2022). You are required to hold I bonds for 12 months, yet you only know the rate you’ll get over the next 6 months.

What is the historical rates of I bonds?

Those who purchased I Bonds from September 1998 through October 2001 have a fixed rate that ranges from 3.00% to 3.60%. Those I Bonds will have a composite rate for six months that ranges from 12.76% to 13.39%. The following list shows the five highest composite rates that will occur on past I Bond purchases.

#### Should I buy I bonds now or in May?

If you purchase an I bond anytime from May to Oct. 31, you’ll get an annualized 9.62% return for the first six months—that’s pretty impressive.

Is it better to buy I bonds in April or May 2022?

If you theoretically buy on April 30th, 2022 and sell on July 1, 2023, you’ll earn a ~7.17% annualized return for an 14-month holding period. Comparing with the best interest rates as of April 2022, you can see that this is much higher than a current top savings account rate or 12-month CD. Buying in May 2022.

Should I buy I bonds now or in May 2022?

Your July 2022 I bonds purchase will turn your \$100 into \$104.81 just 6 months later. This is a 9.62% annualized rate. After six months you’ll get the new six-month rate, and your money will grow by that new rate….Buy I Savings Bonds in July 2022.

March 2022 CPI-U: 287.504
Implied November 2022 I Bond inflation rate (with no further changes): 3.33%

## How long do you have to hold an I Bond?

How long must I keep an I bond? I bonds earn interest for 30 years unless you cash them first. You can cash them after one year. But if you cash them before five years, you lose the previous three months of interest.

What is the historical interest rate on I bonds?

The 9.62% return rate of Series I bonds gets them closer to traditional stock market returns, which usually average about 10% annually over the long term.

How much can I make with an I bond?

For the first six months you own it, the Series I bond we sell from May 2022 through October 2022 earns interest at an annual rate of 9.62 percent. A new rate will be set every six months based on this bond’s fixed rate (0.00 percent) and on inflation.

### How long do Series I bonds earn interest?

30 years
I bonds earn interest for 30 years unless you cash them first. You can cash them after one year. But if you cash them before five years, you lose the previous three months of interest.

Should I buy I bonds now or wait until May?

What is the rate of interest on I bonds?

a fixed rate of 0% that remains the same throughout the life of the bond and a variable inflation rate that changes two times every year (in May and in November) with the latest being 4.81% An I bond’s actual rate of interest (its earnings or composite rate) is calculated using the following formula:

#### How often does an I-Bond earn interest?

An I bond earns interest monthly from the first day of the month in the issue date. The interest accrues (is added to the bond) for up to 30 years. The interest is compounded semiannually. Every six months from the bond’s issue date, all interest the bond has earned in previous months is in the bond’s new principal value.

How often does the fixed rate of an I-bond change?

That fixed rate does not change during the life of the bond. Treasury announces the fixed rate for I bonds every six months (on the first business day in May and on the first business day in November). That fixed rate then applies to all I bonds issued during the next six months. The fixed rate is an annual rate.

What are the new I bond and EE bond rates?

The Treasury released the new I Bond and EE Bond rates on Monday. New rates are announced on every first business day of November and May. The I Bond fixed rate remains at 0.00%. This was expected due to the Fed’s zero rate policy with no end in sight combined with the ultra low Treasury yields.