I bonds interest rates — TreasuryDirect (2024)

FAQs

I bonds interest rates — TreasuryDirect? ›

The composite rate for I bonds issued from May 2024 through October 2024 is 4.28%.

The current composite I bond rate is 4.28%. This includes a 1.30% fixed rate and a 1.48% inflation rate. The current rate applies for six months to bonds purchased between May 1, 2024, and Oct. 31, 2024.

The cons of investing in I-bonds

There's actually a limit on how much you can invest in I-bonds per year. The annual maximum in purchases is $10,000 worth of electronic I-bonds, although in some cases, you may be able to purchase an additional $5,000 worth of paper I-bonds using your tax refund.

The current I-bond rate, valid for bonds issued May 1 through Oct. 31, 2024, is 4.28%. That includes a fixed rate of 1.30%. To put that in context, the best high-yield savings accounts and the best CD rates are giving returns over 5%.

Paper I bonds are only available in multiples of $50.” There are also limits on how many I bonds you can buy each year. Individual purchase limits for I bonds are $15,000 per calendar year — $10,000 worth of electronic I bonds and $5,000 worth of paper I bonds.

Unlike I-bonds, TIPS are marketable securities and can be resold on the secondary market before maturity. When the TIPS matures, if the principal is higher than the original amount, you get the higher amount. If the principal is equal to or lower than the original amount, you get the higher original amount.

The interest earned by purchasing and holding savings bonds is subject to federal tax at the time the bonds are redeemed. However, interest earned on savings bonds is not taxable at the state or local level.

You can count on a Series I bond to hold its value; that is, the bond's redemption value will not decline. Question: What is the inflation rate? November 1 of each year. For example, the earnings rate announced on May 1 reflects an inflation rate from the previous October through March.

You can cash in (redeem) your I bond after 12 months. However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest. See Cash in (redeem) an EE or I savings bond.

Bonds often offer higher interest rates than CDs, which may be appealing to those looking for a higher profit potential. Unlike CDs, where interest may accumulate and only be paid at maturity, bonds often provide ongoing interest payments, usually at monthly or quarterly intervals.

Is now a good time to buy an I bond? ›

Right now, the fixed rate of 1.30% is the most compelling reason to buy I Bonds. The fixed rate hasn't been this high since October 2007. I Bonds got famous for the high inflation rates in 2021 & 2022 – they may stay popular for new purchases based on the 16-year high fixed rates.

Series I bonds will pay 4.28% annual interest from May 1 through October 2024, the U.S. Department of the Treasury announced Tuesday. Linked to inflation, the latest I bond rate is down from the 5.27% annual rate offered since November and slightly lower than the 4.3% from May 2023.

The fixed rate never changes. We announce the fixed rate every May 1 and November 1. That fixed rate then applies, for the life of the bond, to all I bonds that we issue during the next 6 months.

I Bonds earn interest each month, and the interest is compounded every six months. You can earn interest on them for as long as 30 years, and can cash them out after 5 years without losing interest. You lose only three months interest if you cash them out before you reach 5 years.

If you want to keep all your good interest and get the most out of your I Bonds you should cash out: after earning 3 months of lower interest and. just after the 1^st of the month.

The composite rate for I bonds issued from May 2024 through October 2024 is 4.28%.

I bonds can be a safe immediate-term savings vehicle, especially in inflationary times. I bonds offer benefits such as the security of being backed by the full faith and credit of the U.S. government, state and local tax exemptions and federal tax exemptions when used to fund educational expenses.

Basic Info. 1 Year Treasury Rate is at 4.88%, compared to 4.87% the previous market day and 5.35% last year. This is higher than the long term average of 2.96%. The 1 Year Treasury Rate is the yield received for investing in a US government issued treasury security that has a maturity of 1 year.

6 Month Treasury Bill Rate (I:6MTBRNK)

6 Month Treasury Bill Rate is at 5.00%, compared to 5.00% the previous market day and 5.26% last year. This is higher than the long term average of 4.49%.