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The U.S. Department of the Treasury has announced new rates for Series I bonds.
Newly purchased I bonds will pay 4.03% annual interest from Nov. 1 through April 30, which is up from the 3.98% yield offered through Oct. 31.
The new rate includes a variable portion of 3.12%, based on inflation data, and a fixed portion of 0.90%. The combined rate is 4.03% after rounding, according to the Treasury. The fixed rate is down from 1.10% announced in May.
In May 2022, the I bond rate hit a record high of 9.62%, and many investors flooded into the government-backed, nearly risk-free asset.
Since then, some shorter-term investors have redeemed holdings amid falling inflation and rates. But other long-term investors have purchased I bonds over the past couple of years to lock in the higher fixed rate.
How I bond rates work
I bond rates have a variable and fixed portion,…
