US Savings I-Bonds Rate, 5/1/25 – 10/31/25

yogibearbull

US Savings I-Bonds Rate, 5/1/25 – 10/31/25
Total 3.98%% (vs previous 3.11%)
Fixed rate is 1.10%, the semiannual inflation is 1.43%.
https://www.treasurydirect.gov/savings-bonds/i-bonds/

Notes:
1. There is a 3-mo interest penalty for selling in yrs 1-5.
2. Interest accrues monthly on the 1st of the month but is added to the principal only at 6-mo intervals from the purchase date. So, simple interest applies from the month of purchase up to 6 months, & then is compounded (i.e. added to the principal) at 6-monthly intervals.
3. Buy late in the month, or sell early in the month, to get full month interest.

Sven

Thank you for the information. We have few small I-bond holding maturing in 2026. Unsure if we will continue to add more I-bonds due to the 5-years holding period. Working with Treasury Direct is not the easiest.

Observant1

I've purchased I-Bonds very late in the month and received the full interest payment for that month.
If I-Bonds are sold very early in the month, bond holders would still receive the full month's interest payment?

yogibearbull

@Observant, yes, I have always cashed maturing bonds on the 1st or 2nd of the maturity month & received full interest.

Observant1

Thanks for confirming!