Treasury Department announces new Series I bond rate of 5.51% for the next six months
The U.S. Department of the Treasury has announced new Series I bond rates through April 2027.
TL;DR
- Newly purchased Series I bonds will yield 5.51% annually from November 1, 2024, to April 30, 2025.
- The new rate includes a variable inflation component of 4.08% and a fixed component of 1.40%.
- The fixed rate is the highest it has been since 2006.
- I bond rates hit a record high of 9.62% in May 2022 due to post-pandemic inflation.
- Inflation data shows a 3.7% rise in the consumer price index in September 2024 compared to the previous year.
- Consumer expectations for inflation have also risen, with a one-year outlook jumping to 3.9% in September 2024.
- I bond rates are adjusted every six months, with variable rates tied to inflation and fixed rates remaining constant after purchase.
- Interest can be earned for up to 30 years, but bonds cannot be redeemed for one year and redeeming within five years results in forfeiture of the last three months' interest.