The U.S. Department of Treasury has announced a new Series I bond rate of 3.11% effective for the next six months, starting February 22, 2024.

This rate comprises a variable and fixed portion, which the Treasury adjusts biannually in May and November. The variable rate is tied to inflation and remains constant for six months post-purchase, while the fixed rate is set at the time of purchase and does not change.

For current I bond holders, the timeline for rate changes is dependent on the original purchase date. After the initial six-month period, the variable yield will adjust to the next announced rate. For instance, if I bonds are purchased in September 2024, the initial variable rate will be 2.96%, transitioning to 1.90% in March 2025, while the fixed rate remains at 1.30%. This adjustment results in a new composite rate of 3.2%.