The rate for newly issues iBonds is 1.84%
The rate for I bonds issued in the last six months will be 1.94%
For rates for older Series I Bonds, see
I bond fixed rates are determined each May 1 and November 1. Each fixed rate applies to all I-bonds issued in the six months following the rate determination.
The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the life of the bond, and the semiannual inflation rate. The 1.94% earnings rate for I bonds bought from from May 1, 2014 through October 31, 2014 will apply for the succeeding six months after the issue date.
The earnings rate combines a 0.10% fixed rate of return with the 1.84% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The CPI-U increased from 234.149 in September 2013 to 236.293 in March 2014, a six-month increase of 0.92%
- Fixed rate = 0.10%
- 6 month Inflation rate = 0.92%
- Composite rate =[fixed rate + (2 x inflation rate) + (fixed rate x inflation rate)]
- [0.0010 + (2 x 0.0092) + ( 0.0010 x 0.0092)]= 0.0194 = 1.94%
==> Thus, the current I Bond Composite Earnings Rate is 1.94% with a fixed rate of 0.10%