Interest rates play a crucial role in personal finance and the broader economy. For individuals looking to grow their savings safely, understanding current interest rates on savings bonds, like I bonds, is essential. This article breaks down the current interest rates for I bonds, how these rates are determined, and what you can expect from these investments.
The composite rate for I bonds issued from November 2024 through April 2025 is 3.11%. This rate is a combination of two components: a fixed rate and an inflation rate. Let’s delve into how this rate is calculated.
| Fixed rate | 1.20% |
|---|---|
| Semiannual (1/2 year) inflation rate | 0.95% |
| Composite rate formula: [Fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation rate)] | [0.0120 + (2 x 0.0095) + (0.0120 x .0095)] |
| Gives a composite rate of | [0.0120 + 0.0190 + 0.0001140] |
| Adding the parts gives | 0.031114 |
| Rounding gives | 0.0311 |
| Turning the decimal number to a percentage gives a composite rate of | 3.11% |
How Often Do Interest Rates Change?
Interest rates for I bonds are not static. They are announced in May and November each year. However, the rate change for your specific bond occurs every six months from the bond’s issue date. This means that the interest rate applied to your I bond can change at different times of the year depending on when you purchased it.
To clarify when your interest rate changes, refer to the table below:
| 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 |
Understanding How Interest Accrues
I bonds start earning interest from the first day of the month you purchase them. The interest earned is added to the bond’s principal value twice a year – every six months. This process is known as semiannually compounding. Compounding means your earnings are not just based on the initial principal but also on the accumulated interest. This allows your investment to grow more significantly over time as you earn interest on a larger balance.
To find the current value of your I bond, you can check your account on TreasuryDirect if you purchased the bond electronically. For paper bonds, the Savings Bond Calculator is a helpful tool to determine the current value.
Important Note: Keep in mind that for I bonds held for less than five years, the value shown in TreasuryDirect and the Savings Bond Calculator may not include the last three months of interest. This is because if you redeem your bond before the five-year mark, you will not receive the final three months of interest.
Historical Interest Rates for I Bonds
For those interested in the historical performance of I bonds, understanding past interest rates can provide valuable context. I bonds have had varying interest rates throughout their history, reflecting changes in both fixed rates and inflation rates.
Fixed Rates Over Time
The fixed rate for I bonds is set every May and November and applies to bonds issued in the subsequent six months. This fixed rate remains constant for the life of the bond, making it a predictable component of the overall return.
| Date the fixed rate was set | Fixed rate for bonds issued in the six months after that date |
|---|---|
| November 1, 2024 | 1.20% |
| May 1, 2024 | 1.30% |
| 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 and Their Impact
The inflation rate component of I bonds is also updated every May and November. This rate applies to all outstanding I bonds for a six-month period, starting from each bond’s next interest accrual month. The inflation rate ensures that I bonds offer a return that keeps pace with the cost of living.
| 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, 2024 | 0.95% |
| May 1, 2024 | 1.48% |
| 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 Overview
The composite rate, which is the actual interest rate you earn on your I bond, is a combination of the fixed rate and the inflation rate. The table below summarizes the current composite rates for I bonds based on when they were purchased.
| Period when you bought your I bond | Composite rate for your 6 month earning period starting November 2024 through April 2025 |
|---|---|
| From | Through |
| Nov. 2024 | Apr. 2025 |
| May 2024 | Oct. 2024 |
| Nov. 2023 | Apr. 2024 |
| May 2023 | Oct. 2023 |
| Nov. 2022 | Apr. 2023 |
| May 2022 | Oct. 2022 |
| Nov. 2021 | Apr. 2022 |
| May 2021 | Oct. 2021 |
| Nov. 2020 | Apr. 2021 |
| May 2020 | Oct. 2020 |
| Nov. 2019 | Apr. 2020 |
| May 2019 | Oct. 2019 |
| Nov. 2018 | Apr. 2019 |
| May 2018 | Oct. 2018 |
| Nov. 2017 | Apr. 2018 |
| May 2017 | Oct. 2017 |
| Nov. 2016 | Apr. 2017 |
| May 2016 | Oct. 2016 |
| Nov. 2015 | Apr. 2016 |
| May 2015 | Oct. 2015 |
| Nov. 2014 | Apr. 2015 |
| May 2014 | Oct. 2014 |
| Nov. 2013 | Apr. 2014 |
| May 2013 | Oct. 2013 |
| Nov. 2012 | Apr. 2013 |
| May 2012 | Oct. 2012 |
| Nov. 2011 | Apr. 2012 |
| May 2011 | Oct. 2011 |
| Nov. 2010 | Apr. 2011 |
| May 2010 | Oct. 2010 |
| Nov. 2009 | Apr. 2010 |
| May 2009 | Oct. 2009 |
| Nov. 2008 | Apr. 2009 |
| May 2008 | Oct. 2008 |
| Nov. 2007 | Apr. 2008 |
| May 2007 | Oct. 2007 |
| Nov. 2006 | Apr. 2007 |
| May 2006 | Oct. 2006 |
| Nov. 2005 | Apr. 2006 |
| May 2005 | Oct. 2005 |
| Nov. 2004 | Apr. 2005 |
| May 2004 | Oct. 2004 |
| Nov. 2003 | Apr. 2004 |
| May 2003 | Oct. 2003 |
| Nov. 2002 | Apr. 2003 |
| May 2002 | Oct. 2002 |
| Nov. 2001 | Apr. 2002 |
| May 2001 | Oct. 2001 |
| Nov. 2000 | Apr. 2001 |
| May 2000 | Oct. 2000 |
| Nov. 1999 | Apr. 2000 |
| May 1999 | Oct. 1999 |
| Nov. 1998 | Apr. 1999 |
| Sept. 1998 | Oct. 1998 |
Understanding current interest rates, especially for investments like I bonds, is important for making informed financial decisions. I bonds offer a safe and reliable way to grow your savings, with interest rates that adjust to reflect both a fixed component and inflation, ensuring your investment keeps pace with economic changes.
