I Bond Rates
I Bond rates are based on two factors: the fixed rate and the variable rate. The fixed rate is established by the Fed. The variable rate is based on the rate of inflation over the past 6 months. Combined, the fixed rate and the variable rate make the actual rate of the I Bond.
Fixed Rates
The fixed rate portion of the I Bond is valid for the life of the bond (30 years). The fixed rate combined with the variable rate equals the total rate of the bond for that time.
| Fixed Rate History | |
|---|---|
| 1-May-08 | 0.00% |
| 1-Nov-07 | 1.20% |
| 1-May-07 | 1.30% |
| 1-Nov-06 | 1.40% |
| 1-May-06 | 1.40% |
| 1-Nov-05 | 1.00% |
| 1-May-05 | 1.20% |
| 1-Nov-04 | 1.00% |
| 1-May-04 | 1.00% |
| 1-Nov-03 | 1.10% |
| 1-May-03 | 1.10% |
| 1-Nov-02 | 1.60% |
| 1-May-02 | 2.00% |
| 1-Nov-01 | 2.00% |
| 1-May-01 | 3.00% |
| 1-Nov-00 | 3.40% |
| 1-May-00 | 3.60% |
| 1-Nov-99 | 3.40% |
| 1-May-99 | 3.30% |
| 1-Nov-98 | 3.30% |
| 1-Sep-98 | 3.40% |
CPI-U Rates
Consumer Price Index for all Urban Consumers (CPI-U) is the rate of inflation that the Fed uses to determine the variable rate of the I Bond total rate. The CPI-U value is released monthly, but the I Bond rate is only adjusted 2 times per year.
| CPI-U Rate History | |
|---|---|
| 1-May-08 | 2.42% |
| 1-Nov-07 | 1.53% |
| 1-May-07 | 1.21% |
| 1-Nov-06 | 1.55% |
| 1-May-06 | 0.50% |
| 1-Nov-05 | 2.85% |
| 1-May-05 | 1.79% |
| 1-Nov-04 | 1.33% |
| 1-May-04 | 1.19% |
| 1-Nov-03 | 0.54% |
| 1-May-03 | 1.77% |
| 1-Nov-02 | 1.23% |
| 1-May-02 | 0.28% |
| 1-Nov-01 | 1.19% |
| 1-May-01 | 1.44% |
| 1-Nov-00 | 1.52% |
| 1-May-00 | 1.91% |
| 1-Nov-99 | 1.76% |
| 1-May-99 | 0.86% |
| 1-Nov-98 | 0.86% |
| 1-Sep-98 | 0.62% |
I Bond Rates
The actual rate of the I Bond at any time is based on the Fixed Value and the Variable Value. The Rate is based on the following formula established by the Treasury:
(Fixed rate * CPI-U Rate)
| New I Bond's Initial 6 Month Rate History | |
|---|---|
| 1-May-08 | 4.84% |
| 1-Nov-07 | 4.28% |
| 1-May-07 | 3.74% |
| 1-Nov-06 | 4.52% |
| 1-May-06 | 2.41% |
| 1-Nov-05 | 6.73% |
| 1-May-05 | 4.80% |
| 1-Nov-04 | 3.67% |
| 1-May-04 | 3.39% |
| 1-Nov-03 | 2.19% |
| 1-May-03 | 4.66% |
| 1-Nov-02 | 4.08% |
| 1-May-02 | 2.57% |
| 1-Nov-01 | 4.40% |
| 1-May-01 | 5.92% |
| 1-Nov-00 | 6.49% |
| 1-May-00 | 7.49% |
| 1-Nov-99 | 6.98% |
| 1-May-99 | 5.05% |
| 1-Nov-98 | 5.05% |
| 1-Sep-98 | 4.66% |
This graph shows the value of a new I Bond's rate for the first 6 months. After 6 months, the variable rate would change based on changes in the CPI-U rate.
I Bond Rate Calculator
Use this calculator to calculate an I bond's rate. Enter the CPI-U growth rate and the fixed rate you think will be chosen to calculate the I bond's new rate.
Next: Learn how I Bonds fit into your portfolio >>
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