2013 I-Bond Rates: May 1 through Oct 31, 2013

From May 1, 2013 Announcement: The Bureau of the Public Debt today announced earnings rates for Series I Savings Bonds and Series EE Savings Bonds, issued from May 1, 2013 through October 31, 2013.

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 Current I Bond Composite Earnings Rate is 1.18% 

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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 1.18% earnings rate for I bonds bought from from May 1, 2013 through October 31, 2013 will apply for the succeeding six months after the issue date.

The earnings rate combines a 0.00% fixed rate of return with the 1.18% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The CPI-U increased 0.59% between October 2012 to and March 2013.

Fixed rate = 0.00%
6 month Inflation rate = 0.59%
Composite rate =[fixed rate + (2 x inflation rate) + (fixed rate x inflation rate)]
[ 0.0000 + (2 x 0.0059) + (0.0000 x 0.0059)] = 0.0118 = 1.18%

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For more information, see:

• I Bonds Explained
  
• Current iBond Rates
  
• iBond Rate History
• May 3, 2010 Press Release

For older ibonds and what they will pay, see:

I Bond Composite Rates (iBonds)

Disclaimer: I own Series I Bonds in my personal account.