The Treasury Department declares a new 3.11% rate for Series I bonds over the next six months.

• The U.S. Department of the Treasury declared on Thursday that Series I bonds will have a coupon rate of 3.11% until April 2025.
• The latest I bond rate has decreased from the 4.28% yield since May and the 5.27% rate offered in November 2023, which is linked to inflation.
• Bond owners will experience rate adjustments based on their purchase date.

The U.S. Department of the Treasury has announced new Series I bond rates.

The annual interest rate for newly purchased I bonds, which is linked to inflation, has decreased from 4.28% to 3.11% from November 1 through April 30, 2025. This is a decrease from the 5.27% yield rate offered in November 2023.

The new interest rate on I bonds has a variable portion of 1.90% and a fixed portion of 1.20%, which is lower than the 1.3% announced in May. Despite a significant decrease in the yield from its May 2022 high of 9.62%, the fixed-rate portion of the yield remains attractive to some long-term investors, experts say.

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How I bond rates work

The I bond "composite rate" consists of a variable and fixed rate portion, which the Treasury adjusts every May and November. The variable rate is based on inflation and remains constant for six months following the purchase date, regardless of the Treasury's next announcement. You can view the history of both components of the I bond rate here.

The fixed rate remains unchanged after purchase, but the variable rate is less predictable and the Treasury does not reveal how it calculates the update.

How I bond rate changes affect current holders

The timeline for rate changes on I bonds varies depending on the original purchase date, with a six-month window.

The variable yield shifts to the next announced rate six months after the initial purchase of I bonds. For instance, if you buy I bonds in September of any given year, your rates change every year on March 1 and Sept. 1, according to the Treasury.

If you bought I bonds in September 2024, your variable rate would start at 2.96% and change to the new rate of 1.90% in March 2025. However, your fixed rate would remain at 1.30%, resulting in a new composite rate of 3.2%.