Current I Bond Rate November 2023

• I bonds are low-risk, inflation-linked investments that may be worth considering.
• Interest earned in the previous six months has been added to the bond’s principal. 
• The Treasury sets new I bond interest rates in May and November.

Bonds have historically been considered conservative fixed-income investments, less flashy than stocks. But recently, Series I savings bonds have become a much more exciting and attractive investment option — and a valuable tool to hedge against inflation.

Current I bond interest rate now

If you’re wondering what the buzz around I bonds is, the answer lies in their interest rate. The current bond composite rate is 5.27%. That rate applies for the first six months for bonds issued from November 2023 through April 2024. 

For example, if you purchased I bonds on Nov. 1, 2023, the 5.27% rate would be in effect until April 30, 2024. This is nearly a full percentage point higher than the previous I bond rate.

The fixed rates for I bonds are announced every six months: May 1 and Nov. 1. And that rate applies to the I bonds issued for the next six months. 

The inflation rate, which is related to the consumer price index, usually changes every six months, too, and it’s set at the same time: May 1 and Nov. 1. 

How are I bond rates set?

The U.S. Treasury sets I bond rates every May and November, and two things factor into how rates are set:

• Fixed rate.
• Inflation rate.

As you can infer from its name, the fixed rate of a bond doesn’t change. The fixed rate for I bonds is currently 1.30%. Whether this rate will change in May depends on whether the Treasury decides to adjust or leave it as is.

The second factor is the inflation rate, which will adjust every six months for as long as you hold your I bonds.  I bonds can outpace savings accounts without excessive risk. An I bond with a fixed rate of 1.3% remains attractive and a worthy investment.

How do you check I bond returns?

You can check returns on your bonds by logging into your TreasuryDirect account.  I bonds are a simple investment to track, earn tax-deferred interest, and can never lose a cent of accumulated value.

I bonds are a unique investment that work differently than any other type of bond or savings account.

For starters, there’s a $15,000 individual purchase limit per calendar year ($10,000 of electric I bonds through TreasuryDirect and up to $5,000 of paper I bonds purchased with your tax refund dollars at the time of filing).

Additionally, you won’t be able to cash them out for 12 months, emergency notwithstanding. And if you cash them out within five years, you lose the last three months of interest. If, for example, you cashed an I bond out after 20 months, you would only receive the first 17 months of interest.

I bonds can accrue interest for up to 30 years, and they aren’t subject to state or local taxes. You must pay federal taxes on them, but you can choose to report earnings annually or wait until you cash them out. You may even be able to get the federal taxes waived if you used the bonds to pay for certain higher education expenses for yourself or a qualifying relative.

Sources: money.com© and usatoday.com©