I Bond Rates Today: Current Rate and How It's Set
By Markets & Investing DeskUpdated Nov 10, 2026
Key takeaways
- The composite rate equals the fixed rate plus twice the semiannual CPI-U change plus their product.
- Treasury announces new rates on May 1 and November 1, based on six-month changes in CPI-U.
- An existing bond picks up a new inflation rate on its own six-month cycle set by its issue month.
- Bonds issued from May 2020 through October 2022 carry a 0.00% fixed rate for their full term.
- Redeeming before five years costs the last three months of interest, and no bond can be cashed in its first year.
The current I bond rate is the composite rate the U.S. Treasury announces on May 1 and November 1. A new Series I savings bond bought during the following six months earns that composite rate for its first six months. The composite has two parts: a fixed rate that is locked in for the life of the bond, and an inflation rate that resets every six months. Two people quoting “the I bond rate” can therefore earn different amounts. A new buyer gets the latest fixed rate plus the latest inflation rate. An existing holder keeps the fixed rate from their purchase date and picks up the new inflation rate on their bond’s own schedule.
How the Composite Rate Is Calculated
Treasury combines the two parts with this formula:
Composite rate = fixed rate + (2 × semiannual inflation rate) + (fixed rate × semiannual inflation rate)
The semiannual inflation rate is the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) over a six-month window. The May announcement uses the change from the prior September to March. The November announcement uses March to September. Doubling the six-month figure annualizes it. The final cross term adds a small amount because the fixed rate also compounds with inflation.
Example
Hypothetical figures, for illustration only: a fixed rate of 1.00% and a semiannual inflation rate of 1.50%.
- 2 × 1.50% = 3.00%
- 1.00% × 1.50% = 0.015%
- Composite = 1.00% + 3.00% + 0.015% = 4.015%, which rounds to 4.02%
That 4.02% is an annual rate. The bond earns half of it over the six-month period, and interest compounds semiannually by being added to the bond’s value. If the next CPI-U reading showed lower inflation, the inflation part would fall while the 1.00% fixed rate stayed in place.
When a New Rate Reaches Bonds You Already Own
A newly announced inflation rate does not apply to every existing bond on May 1 or November 1. It begins on the bond’s own six-month anniversary cycle, which depends on its issue month.
| Bond issue month | Rate changes on the 1st of |
|---|---|
| January | January and July |
| February | February and August |
| March | March and September |
| April | April and October |
| May | May and November |
| June | June and December |
| July | July and January |
| August | August and February |
| September | September and March |
| October | October and April |
| November | November and May |
| December | December and June |
A bond issued in May switches to the May-announced rate on May 1. A bond issued in September keeps its current rate until September 1, then moves to the May-announced inflation rate. For a holder late in the cycle, a change in inflation can take up to six months to show up in earnings.
Why Your Rate Differs From the Advertised One
The fixed rate is the part that separates bonds bought at different times. Treasury sets it at each May and November announcement, and it has varied widely. Bonds issued from May 2020 through October 2022 carry a 0.00% fixed rate, so their earnings come entirely from the inflation component. Bonds bought in November and December 2022 lock in 0.40%. Bonds from May to October 2023 have 0.90%, and those from November 2023 to April 2024 have 1.30%.
The inflation component has also swung sharply. Bonds bought from May through October 2022 started at a composite rate of 9.62%, the highest since the program began in 1998, after a period of high CPI readings. Later resets came in much lower as inflation cooled.
Exceptions That Change the Answer
- Deflation floor. If CPI-U falls over the measurement window, the inflation rate turns negative and can pull the composite below the fixed rate. The composite cannot drop below 0%, so the bond’s value never declines.
- Early redemption. You cannot cash an I bond in its first 12 months. If you redeem before five years, you lose the last three months of interest. A high starting rate is worth less to someone who expects to cash out early.
- Holding period. I bonds earn interest for up to 30 years and then stop. The fixed rate keeps applying for that whole span.
- Taxes. Interest is subject to federal income tax but exempt from state and local income tax. You can defer federal tax until redemption or maturity, and some holders can exclude interest used for qualified education expenses.
What Moves the Next Rate
The next inflation component depends only on the CPI-U change over the coming six-month window. If prices rise faster in that period, for example because energy costs climb, the next reset will be higher, and both new and existing bonds will earn more once their change dates arrive. Slower inflation produces a lower reset.
The fixed rate for new purchases is set separately at Treasury’s discretion, with no published formula. Comparing it with yields on other safe assets helps when deciding whether to buy now or wait for the next announcement.
The Bottom Line
Anyone buying or holding Series I savings bonds needs to know which rate actually applies to their bond. New buyers lock in the current fixed rate for up to 30 years, while existing holders keep their original fixed rate and see inflation resets on their own schedule. Plan to hold at least five years to avoid the interest penalty, and compare the fixed rate with other safe yields before buying.
