I savings bonds interest rate in July 2024

Earn 4.28% on savings bonds issued May 1, 2024 to October 31, 2024.

Series I savings bonds protect you from inflation. With an I bond, you earn both a fixed rate of interest and a rate that changes with inflation.

Purchase online

• Open a new account at treasurydirect.gov
• Link your bank account
• Transfer funds to treasurydirect
• Order electronic I Bonds

Key facts

• Interest rate compounded semi-annually.
• Purchase limit min. $25 / max. $10,000 each calendar year.
• Subject to federal Income tax only, unless used for education.
• Earns interest based on combining a fixed rate and an inflation rate.
• Backed by the full faith and credit of the U.S. government.

Cashing out

• I bonds earn interest for 30 years unless you cash them first.
• You can cash them after one year, however if you cash them before five years, you lose the previous three months of interest. (For example, if you cash an I bond after 18 months, you get the first 15 months of interest.)

Bank Savings Accounts vs. I Savings Bonds

The real rate of return between 1998 and 2023 for I Bonds was 167% compared to bank accounts which lost 26%.

Saving $10,000/year since 1998, or $250,000 in savings over 25 years, after interest and inflation, would have returned additional $417,980 on I Bonds vs. a loss of $64,723 on bank accounts.

Access historical rates for I Bonds at https://www.treasurydirect.gov/files/savings-bonds/i-bond-rate-chart.pdf