Treasury Direct Announces Series I Bonds Rate of 6.89%

Series I savings bonds will earn a composite rate of 6.89% for November 2022 through April 2023, a portion of which is indexed to inflation every six months.

• Update 12/17/2022: The last opportunity to buy I Bonds for your 2022 allotment will be on Thursday December 29th. After that, you can begin buying for your $10,000 allotment for 2023.

Offer Details

Rates for savings bonds are set each May 1 and November 1. Interest accrues monthly and compounds semiannually. Bonds held less than five years are subject to a three-month interest penalty.

• The composite rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the 30-year life of the bond, and the semiannual inflation rate.
• The 6.89% composite rate for I bonds bought from November 2022 through April 2023 applies for the first six months after the issue date.
• The composite rate combines a 0.40’% fixed rate of return with the 6.48% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). 
• The CPI-U increased from 287.504 in March 2022 to 296.808 in September 2022, a six-month change of 3.24%.

Bottom Line

Also announced is a fixed rate of .40% for I Bonds.

If you buy I Bonds now you’ll get a 6.89% return. The 6.48% rate is the “annualized rate” which changes twice per year and the .40% rate is the “fixed rate” which doesn’t change and gets added on top.

The fixed rate continues for the entire 30-year term of the I Bonds. Someone can buy I Bonds anytime from November 2022 through April 2023 and get an extra .40% return on these I Bonds purchased for the next 30 years.

This fixed .40% is interesting for those who have not yet purchased their 2022 $10,000 limit. It’s something to consider if you plan on purchasing an additional $10,000 in I Bonds when the annual limit resets in January 2023.

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