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How I bond rates work
I bond rates have a variable and fixed rate portion, which the Treasury adjusts every May and November. Together, these are known as the I bond “composite rate” or “earnings rate,” which determines the interest paid to bondholders for a six-month period.
You can see the history of both parts of the I bond rate here.
The variable rate is based on inflation and stays the same for six months after your purchase date, regardless of the Treasury’s next announcement.
Meanwhile, the fixed rate doesn’t change after purchase. It’s less predictable and the Treasury doesn’t disclose how it calculates the update.
How I bond rate changes affect current owners
If you currently own I bonds, there’s a six-month timeline for rate changes, which shifts depending on your original purchase date.
After the first six months, the variable yield changes to the next announced rate. For example, if…
