The new I Bond rate is out. It’s a great news.

Key Takeaways

• The U.S. Treasury announced today that I bonds purchased between May and October this year will earn 3.98% for their first six months—a big boost vs. the previous rate of 3.11%.
• If you already have I bonds, there is good news for you: your next 6-month rate will increase by almost a full percentage.
• Today's rate announcement takes into account inflation rates through March. If inflation increases in the months to come due to tariff effects, the next rate for I bonds could be higher.
• Find out in our tables how much your bond will cost, and when you will be charged the new rate.

The full article can be found below these offers.

Today's Rate for New I Bond Purchases

I bond rates change twice a year based on the inflation trend of the previous six months—which is why they’re called I bonds. The rate is actually composed of two parts. One is fixed for the life of your I bond—assigned at the time of your purchase—while the other component is indexed to inflation and adjusts every May and November.

The U.S. Treasury announced today its May 1 rate. It revealed a slightly lower component of fixed-rate than the previous period (1.10 vs. 1.20%), but a higher component of inflation, coming in at 2.86 % (vs. The new composite rate for I bonds is 3.98% if purchased at any time during the six-month period between May 1 and October 31 this year. The detailed calculation of the new composite rate actually is [fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation rate)].)

If you buy a new I bond by Oct. 31, you'll earn 3.98% for your first half year of interest payments. Your return will then depend on the rate announcement for Nov. 1, which will in turn be determined by future inflation. I bond rates will rise if inflation increases, and vice versa. (See below for our discussion of what future inflation and I bonds rates might look like.)

Existing I Bonds: New and Improved Interest Rates

No matter if your next six month interest rate is based on I bonds you already own or new I Bonds that you buy tomorrow, the same inflation factor of 2.86% applies. Your return will depend on when you purchased your bond. That’s when the permanent fixed-rate component was assigned to your bond. Remember: The fixed portion of your rate is just that—it never changes for the life of an individual bond.

The inflation factor at the rate announcement on Nov. 1, was 1.90%. That means today's new six-month return, based on a rising inflation trend this past half year, will be almost a full percentage point higher than your previous rate (i.e., 2.86% inflation component today minus 1.90% inflation component in November).

The table below shows the new rate for existing I bonds that date back to May of 2020. To find out the new rate, you can look up the issue month and consult the table. Next, look at the next table to see when your new rate will take effect.

Tip

Have you purchased I bonds earlier than those shown? You can find all historical bond rates in the U.S. Treasury I-Bond Rate Chart.

The month in which your bond was issued will determine when you start earning your new rate. For instance, if you bought your I bond in May—of any year—you'll start earning your new rate today, on May 1. But if you bought in, say, September, your current rate won't change to today's new rate until Sept. 1.

Why future I bond rates could be heading higher

The U.S. Treasury calculated the inflation trend for the six months ending in March 2025, based on readings between October 2024 and March 2025. The last inflation figure did not reflect the impact of President Trump’s dramatic announcement on April 2 nor the effects seen over the past month as the on and off tariff policy evolved.

Many economists predict that tariffs will cause inflation rates to rise. If this proves to be true and continues for several months, Treasury could increase its next six-month calculation of inflation for I bonds in November. This would then push rates higher for both existing and new I bonds.

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These rankings are updated every business day so that you can get the best possible deposit rates.

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How we find the best savings rates

Investopedia tracks daily the rates of more than 200 banks, credit unions, and savings accounts that are offered to customers across the nation. This data is used to determine the best-paying accounts. To be included in our lists, an institution must be federally backed (FDIC for banks and NCUA credit unions) and have a minimum deposit of $25,000 or less. The maximum deposit amount cannot be less than $5,000.

Nationally available banks must be present in at least 40 different states. While some credit unions ask you to donate to an association or charity to become a part of their organization if you do meet other criteria (e.g. if you live in a specific area or hold a particular job), we exclude those credit unions that require a donation of $40 or more. Read our methodology to learn more about how we select the best rates.

Article Sources Investopedia asks writers to use primary resources to support their writing. These include whitepapers, government data, original reports, and interviews with experts in the industry. Where appropriate, we also reference original research by other reputable publishers. Learn more about our standards for producing accurate and unbiased content by visiting our Editorial Policy

1. TreasuryDirect. "I Bond Interest Rates."

2. TreasuryDirect. "Series I Savings Bond Earnings Rates Effective Nov. 1, 2023."

3. Treasury Department of the United States "I Bonds Interest Rates."