Good News for I Bond Holders: Your Rate Is Going Up. Here’s How Much and When.

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Next Rate for Existing I Bonds Can Now Be Calculated

I bonds are so named because they’re calibrated to inflation. Whenever inflation rises, I bonds pay more. If you now own I bonds, there’s a good chance you bought them within the last two to three years, when decades-high U.S. inflation pushed I bond returns to their highest levels.

The annual rate of inflation as tracked by the Consumer Price Index (CPI) has cooled from a high of 9.1% in June 2022 to 2.4% in the March 2025 reading, which was released this morning. As inflation has decreased, I bond rates have also fallen, making them a less competitive savings option.

With the latest CPI reading, Investopedia can now calculate what the next 6-month interest rate will be for existing I bonds, due for release by the U.S. Treasury on May 1. Each year on May 1 and Nov. 1, the Treasury announces new rates for the following six months.

To understand how this works, here’s a quick primer on I bond rates, which consist of two components:

1. The first component is a fixed rate, which is assigned to every I bond based on its issue date. This rate is permanently fixed for the life of your I bond, up to its 30-year maturity date.
2. The second component is the inflation rate, which is adjusted twice a year based on the last six monthly CPI readings.

Adding these two components together gives you a close estimate (within a few basis points) of the 6-month composite rate the Treasury will announce in three weeks.

To calculate your particular I bond’s upcoming composite rate, you’ll need to know your fixed rate, and what the latest inflation component is. In this article, we’ve done the math for you. See below for all I bonds issued since November 2021. By finding your bond’s issue date in the first column, you can see in the last column what your next 6-month rate will be.

Note that while the Treasury is set to announce these new rates on May 1, the month the new rate will begin for you is based on the month your I bond was issued. Only people with I bonds purchased in May or November (of any year) will earn the new rate indicated above on May 1. For other issue dates, the start of the new rate will be delayed according to this schedule.

How Much Will Your New Rate Increase vs. Your Existing Rate?

Because inflation has persisted over the last six months, we calculate that the new inflation component of I bond rates will rise almost a percentage point. So for anyone who bought during the particularly popular I bond period of May through October 2022, their current rate of 1.90% will climb to about 2.84%. You can see how the new rate compares to the current rate for several issue dates below.

Want to know how the upcoming rate compares to past periods? The table below lays out the various 6-month rates each I bond has earned through its life cycle.

Consider Moving Your Money to a CD to Earn More

With new I bond rates for recent issues ranging from 2.84% to 4.14%, you can earn more on your savings elsewhere. For example, dozens of nationally available certificates of deposit (CDs) are paying rates in the mid-4% range, with the nationwide leader offering as much as 4.65% APY.

This means cashing out your I bonds (which you can do after owning them for at least 12 months) and moving the money into a top-paying CD could boost your interest rate by 1 to 2 percentage points, or more, though you’ll incur a penalty if your I bond is younger than five years old. The penalty is equal to three months of your latest interest earnings.

Another reason to swap I bond money for a CD is that it adds more certainty to your future returns. Unlike an I bond, with its rate that changes twice a year, a CD you open today will lock in its APY for the full duration of the certificate term. So if you open a multi-year CD, you’ll know your rate is guaranteed for two, three, or even five years down the road.

The Best Day of the Month to Cash Out I Bonds

Monthly I bond interest payments from the U.S. Treasury are paid right away on the first day of the month, and not again until the first of the next month. So once you’ve collected interest for a particular calendar month, say on the upcoming May 1, there are no additional earnings to be gained by holding the funds any longer during November.

Also, if you’re going to move your I bond funds elsewhere, withdrawing on May 1 allows you to receive the May interest payment and then start earning interest as quickly as possible on that money elsewhere, such as a CD or high-yield savings account.

Even if you simply want to cash out and use your I bond funds, there’s no financial gain from waiting beyond the first of the month for your withdrawal.

How We Find the Best Savings and CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000.

Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.