The current interest rate on I-bonds: 2.83% for bonds issued November 2018-April 2019.
This is an increase from 2.52% for the previous 6 months.
Learn about I-Bonds:
Rates & Terms
- I bonds have an annual interest rate derived from a fixed rate and a semiannual inflation rate.
- Interest, if any, is added to the bond monthly and is paid when you cash the bond.
- I bonds are sold at face value; i.e., you pay $50 for a $50 bond.
- Minimum term of ownership: 1 year
- Interest-earning period: 30 years
- Early redemption penalties:
- Before 5 years, forfeit interest from the previous 3 months
- After 5 years, no penalty
- Savings bonds are exempt from taxation by any State or political subdivision of a State, except for estate or inheritance taxes.
- Interest earnings are subject to Federal income tax.
- Interest earnings may be excluded from Federal income tax when used to finance education (see education tax exclusions).