The post US Treasury announces new Series I bond rate of 3.98% for May-October appeared on BitcoinEthereumNews.com.

The US Treasury department announced on Wednesday that new Series I savings bonds that would be purchased between May 1 and October 31, 2025, will pay an annual interest of 3.98%. That number replaces the 3.11% rate from the last six-month cycle. The new rate includes a 2.86% inflation-based portion and a 1.10% fixed rate, which the Treasury also confirmed is a step down from the 1.20% fixed rate set in October. According to the US Department of the Treasury, these bonds update their interest structure every May and November, combining a variable and a fixed rate into what’s called the composite rate—that’s the rate that actually determines what bondholders earn for six months. The variable part reacts directly to inflation and remains steady for six months after the bond is bought, no matter when the next update happens. The fixed part stays locked in for as long as you hold the bond. And no, they still don’t tell anyone how they calculate it. The current update marks a significant drop compared to the record high of 9.62% back in May 2022, when inflation was burning red hot. Even with the numbers coming down, the fixed portion of the rate might still look decent to people who don’t plan on selling these bonds anytime soon. You lock in the fixed rate the day you buy it, and it never changes. That’s why some buyers still show up, even if the overall return looks weaker than it did two years ago. Treasury explains how rate changes impact buyers and holders If you’re holding onto I bonds already, you’re not getting the new rate right away. There’s a built-in six-month lag that depends entirely on your original purchase date. So let’s say you picked up bonds in March. For your first six…

---

Filed under: News - @ April 30, 2025 7:26 pm