Treasury Department announces new Series I bond rate of 5.27% for the next six months

[mahatmakanejeeves]

That's up. Bonds sold through today earn 4.30 percent. The new rate goes into effect tomorrow.

YOUR MONEY

Treasury Department announces new Series I bond rate of 5.27% for the next six months

PUBLISHED TUE, OCT 31 2023 • 10:05 AM EDT | UPDATED 15 MIN AGO

Kate Dore, CFP®

KEY POINTS
• Series I bonds, an inflation-protected and nearly risk-free asset, will pay 5.27% through April 2024, the U.S. Department of the Treasury announced Tuesday.
• Based on inflation data, it’s the fourth-highest rate since I bonds were introduced in 1998.
• However, investors need to consider the downsides, along with their goals, before purchasing.

The U.S. Department of the Treasury announced Series I bonds will pay 5.27% annual interest from Nov. 1 through April 2024, up from the 4.3% annual rate offered since May.

Tied to inflation, investors can claim 5.27% for six months — the fourth-highest I bond rate since 1998 — by purchasing any time from Nov. 1 through the end of April 2024.

The new rate is down from 7.12% in November 2021 and a record 9.72% in May 2022 amid soaring inflation. The annual rate fell to 6.89% in November 2022.

You can buy I bonds online through TreasuryDirect, with a $10,000 per calendar year limit for individuals. You can also purchase an extra $5,000 in paper I bonds with your federal tax refund.

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Blast from the past, from doc03

Tue Nov 1, 2022: The interest rate for I bonds purchased November 2022 thru Apr. 2023 is now 6.89% nt: