February 22, 2024, U.S. Department of the Treasury, Washington, DC.
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How does my bond interest rate work?
I Bond interest rates have variable interest rates and fixed interest rates, and the Ministry of Finance adjusts the interest rate portion every May and November. Together these are called the I-bond “composite rate.” You can see the history of both parts My bond interest rate here.
The floating rate is based on inflation and remains unchanged for six months after the purchase date, regardless of the next announcement from the Treasury.
At the same time, the fixed interest rate does not change after purchase. This portion of the rate is less predictable and the Treasury did not disclose how updates are calculated.
How changes in bond interest rates affect current holders
If you currently hold an I Bond, there is a six-month interest rate change schedule that changes based on your original purchase date.
After the first six months, the variable yield will shift to the next published rate. For example, if you buy an I Bond in September of any year, Your rates change March 1 and September 1 of each year, according to the Treasury Department.
For example, if you purchased an I Bond in September 2024, your variable interest rate would start at 2.96% and change to the new rate of 1.90% in March 2025. This would bring the new combined interest rate to 3.2%.
