November Savings Bond Rates - Composite I Bond Rate of 6.89%


The Treasury released the new I Bond and EE Bond rates today. New rates are announced on every first business day of May and November.

I Bond Rates for New Purchases

As I had calculated on October 13th, the I Bond inflation rate is 6.48% (annualized). The noteworthy news this time is the I Bond fixed rate. The Treasury increased the fixed rate from 0% to 0.40%. This is close to the peak fixed rate during the last rate hiking cycle (0.50% in Nov 2018 and May 2019). The result is a composite rate of 6.89%.

The change of the I Bond inflation rate from 9.62% to 6.48% may be a disappointment, but the 6.48% rate is the third highest inflation rate since the I Bond was introduced in 1998. Before today, the highest I Bond inflation rate was 9.62% that was set last May. The list below shows the six highest I Bond inflation rates. The full history of I Bond rates can be viewed at this TreasuryDirect page.

Six Highest I Bond Inflation Rates (Annualized)

  1. 9.62%, May 2022
  2. 7.12%, November 2021
  3. 6.48%, November 2022
  4. 5.70%, November 2005
  5. 4.92%, November 2008
  6. 4.84%, May 2008


I Bond Rates:
Composite Rate: 6.89%
Fixed Rate: 0.40%
Inflation Rate: 6.48%

EE Bond Rate: 2.10% (EE Bond is guaranteed to double in value in 20 years)

Rates effective November 2022 through April 2023

The I Bond composite rate is still high compared to today’s CD rates from online banks and credit unions, but it’s important to remember that the inflation rate on the I Bond changes every six months. Even if future inflation numbers go back to normal, that would still result in a competitive return for I Bonds over the next year.

For those looking for a safe inflation hedge, I Bonds are a good choice. One nice thing about I Bonds is that the composite rate is guaranteed never to fall below zero. So if we get a period of deflation (which has occurred after periods of high inflation), the I Bond composite rate will never be lower than zero. That’s an advantage over Treasury TIPS which can go negative.

TIPS currently have a yield advantage over I Bonds. The real yields of TIPS are currently around 1.60% (see this Treasury page). The I Bond fixed rate can be considered a real yield, and with this being 0.40%, TIPS currently have an advantage. However, there are several reasons to still max out on I Bonds. One reason is the I Bond tax advantage. For Treasurys including TIPS, federal income tax has to be paid yearly. On I Bonds, you can defer federal income tax until you redeem the I Bond or until it reaches its 30-year maturity.

An important downside of I Bonds is the purchase limit. The maximum that an individual can purchase per year is $10,000 at TreasuryDirect and $5,000 in paper bonds purchased with an IRS tax refund (There are ways to buy more I Bonds. Harry Sit of The Finance Buff has a useful review of how a married couple could buy up to $65,000 in I Bonds in one calendar year by using business accounts and trust accounts.)

I Bond Rates for Current I Bond Holders

I Bonds purchased in the past will get six months of this new inflation rate. The start of this six-month period depends on when you purchased the I Bond. An I Bond's new inflation rate takes effect every six months after its issue month.

Here are a few examples of when the new I Bond inflation rate will take effect on old I Bonds. If you purchased I Bonds in April 2012 and October 2014, the 6.48% inflation rate won't take effect on those I Bonds until April 2023. If you purchased I Bonds in July 1999 and January 2000, the 6.48% inflation rate won’t take effect on those I Bonds until January 2023. For more details, please refer to this Treasury Direct page.

Composite I Bond Rate = 9.58% to 10.20% for I Bonds Purchased before Nov 2001

Those who purchased I Bonds from September 1998 through October 2001 have a fixed rate that ranges from 3.00% to 3.60%. Those I Bonds will have a composite rate for six months that ranges from 9.58% to 10.20%. That’s a decline for the 6-month period based on last May’s I Bond inflation rate (9.62%) that resulted in composite rates between 12.76% to 13.39%. Nevertheless, it’s hard to complain about a safe return of around 10%.

EE Bond Rates

The Treasury finally increased the EE Bond rate. It’s now 2.10%. It had been 0.10% since May 2015. The new rate is higher than it has been since November 2007. This TreasuryDirect page has the history of EE Bond rates.

Even with this new rate, the main benefit of the EE Bond is holding it for 20 years. At the 20-year mark, the EE Bond value is guaranteed to at least double in value. A doubling in value is equivalent to an annual return of about 3.5%.

There has been some concern that the Treasury might end this double-in-value guarantee, but the Treasury kept this guarantee without any changes in today’s announcement.

When rates were low, this double-in-value guarantee made the EE Bond a good deal if you were okay holding the EE Bond for 20 years. However, Treasury yields are much higher these days. The estimated yields of the 20-year Treasury bond have been in the range of 4.00% to 4.60% in the last month according to the Daily Treasury Par Yield Curve Rates page. Thus, you will likely earn more today with Treasury notes and bonds.

Overview of Series I Savings Bond Features

Below is a summary of the I Bond features. More information is available at this Treasury Direct I Bond page:

  • Can't be redeemed within 12 months of issue date
  • Lose last three months interest if redeemed within five years
  • Interest is composed of fixed and inflation-based rate
  • Fixed rate remains for life of bond
  • The composite rate will never be less than zero
  • Inflation-based rate changes every six months after issue month
  • New rates announced every six months on first business day of November and May
  • Federal tax can be deferred on interest until bond is redeemed
  • Interest is exempt from state and local tax
  • Some or all interest is tax exempt when used for educational expenses
  • Maximum purchases per calendar year and per social security number is $10,000 in TreasuryDirect and $5,000 in paper bonds purchased with IRS tax refunds (See The Finance Buff postabout extending limits via trust/business purchases)

  |     |   Comment #1
Do existing holders of IBonds also get the fixed rate or only new purchasers?
  |     |   Comment #2
Only new purchasers . . . during the next six months, through the end of April. After that, it's anybody's guess.
  |     |   Comment #3
Only new.....Unfortunately existing owners are stuck with 0% for the fixed rate for the life of the bond
  |     |   Comment #5
Not only that.
Existing Bondholders will not be getting 0.01% part of the composite rate - inflation adjusted portion of fixed rate.
It is straight - 3.24% for next 6 months.
On the flip side, existing Bondholders still likely enjoying 4.81% Return
Those whos Bonds came off 9.62% rate like Bonds issued in October 2021 managed to provide themselves limited retrieve from inflation at the Gain of about 6% where Bonds Redeemed November 2022.
Very solid Gain considering the combination of near zero risk profile and near zero interest paid for Deposits and other Fixed Income Investments at the time of the purchase in late 2021
I anticipated reintroduction of fixed rate and I see that Treasury being cautious while making the bet that year-over-year Inflation will subside.
If that happens to be the case, Treasury will have to go all in for May 2023 Bonds Issues, and fixed rate will be in full percentage points, as it happened at the turn of the Century
In a meantime, Bondholders who maxed out their I-Bonds purchase for current year will be able, in two months starting January 2nd of next year, to invest more into I-Bonds at the Guaranteed Rate of the Return of 3.65%
Actual Rate of the Return will only be known May 1st 2023
  |     |   Comment #11
What's a "Guaranteed Rate of the Return"?
  |     |   Comment #31
mix--No expert here, but I assume it's the minimum rate of return you'll get for 1 year if you purchase an I-bond with the current composite rate of 6.89%. This minimum would occur only if the i-bond inflation rate is set at 0% next May 1, when the next 6-month rate is announced. Highly unlikely, but in this case your rate for 1 year would be (6 months at 6.89% plus 6 months at .40% (the current "fixed rate") = an annualized rate of 7.29% /2 = 3.645%. --This assumes that the .40% fixed rate will not be reduced on May 1. Most likely, the next I-bond composite rate (fixed rate plus inflation rate) will be above 2.40%; so if you purchase an I bond before May 1, your annualized rate would be at least (6.89% + 2.40%)/2 = 9.29%/2 = 4.645%. Not bad, and I think that's conservative. But we don't know what composite rate will be set on Nov.1, 2023.
  |     |   Comment #32
Now you are getting it!
  |     |   Comment #6
I miss buying the 3%~ fixed rate PLUS inflation in increments of $30K, then expanded later to $60K annually pp early this century! Glad I did then though...will hold 'em all the full 30 years..
  |     |   Comment #7
Jeff.... I did $90k at 3% and $90k at 1.6%, the problem is I left them as tax deferred and if I wait until maturity the taxes will kill me in 2031 2032 and 2033 so I will definitely have to turn a certain percentage in early, maybe I'll start 5 years early unless inflation stays up high then maybe I'll have to start 7 years early..... I'll figure it out as time goes along.
  |     |   Comment #8
The other killer is the marginal tax on Soc Sec...plan accordingly!
  |     |   Comment #9
If I knew back then that I could pay them yearly I would have, never really thought about the future possibilities.
  |     |   Comment #30
Mak, the other part of the calculus is when to take IRA distributions with Soc Sec and it’s marginal tax…take IRA early THEN Soc Sec later…teachers do the same with their unique pension program
  |     |   Comment #29
Don't forget IRMAA on medicate. That's another killer.
  |     |   Comment #26
You can change to reporting early without cashing them in. The only catch is that you have to do it for ALL bonds under your social security number. Also, since you don't get a 1099 each year, you have to calculate the interest (easy calculator on Treasury web site).


"You were deferring. You now want to report every year.
You may do this without permission from the IRS.
But you must do this for all the savings bonds for the Social Security Number whose tax return this is. In addition to the interest for the year you are now reporting, you must also report all interest those bonds earned in the years before you changed.
You were reporting each year. You now want to defer the interest.
You must fill out IRS Form 3115 or follow the instructions in IRS Publication 550 in the section on U.S. Savings Bonds"
  |     |   Comment #28
Capital.....I thought you had to pay yearly from the start. In a way I like the idea, I could pay the taxes and still be able to keep them to maturity without selling them early....what I don't like is that I would have to pay the taxes all at once and there is a lot of interest built up in these bonds, not so much the 1.6% ones but definitely a lot in the 3% ones. My wife and I are still working so it would be a big hit. Wish I knew that a while ago but now I think it's too late.....going to have to talk to my accountant on this one.. might have to just sell them off early on a yearly basis and take the hit yearly after my wife and I stop working, which is in the next 2 years.... bad part of that is I won't have the bonds anymore and I would definitely like to keep the 3% ones.

Thanks for the info.
  |     |   Comment #10
I have a bunch of paper I bonds that I bought many years ago. What's the best way to send the hardcopies to US Treasury for conversion into electronic form? I've sent paper bonds previously via certified mail, but these were smaller amounts. The batch I still have is worth about 500K now so I am uncertain of best method to send. Should it be certified, insured US Mail, Fedex etc??
  |     |   Comment #13
Can anyone from europe buy this IBonds
  |     |   Comment #16
No.  Only US citizens, legal residents of the United States and civilian employees of the US government can buy them.
  |     |   Comment #17
Assuming you mean a non-US citizen from Europe rather than a US Citizen of European descent., the short answer is: no.

The longer answer is: For the most part, no. Individuals need a US SSN (thus need to be US citizens).or EIN (IE own a business), so theoretically a foreigner (from Europe or anywhere else) could purchase i-bonds via the US business (EIN) they own though technically the business would own the bonds and not the person
  |     |   Comment #14
I purchased 10K of the I BOND on October 28th, 2022 (purchased and money was withdrawn from my bank account that day) Can someone please tell me what my exact rate of return would be if I REDEEM IT On October 1st, 2023? Also, November 1st and Dec 1st?
It would be greatly appreciated.
  |     |   Comment #18
Ken calculated this in a previous post:

Below is an estimated annualized return for I Bond redemptions from October 1, 2023 to January 1, 2024. It is assumed you will buy the I Bond at the end of October 2022 which gives you almost an extra month of interest. This effectively reduces the 3-month penalty to 2 months.
7.01% (11mo) redeem on 10/1/23, 6mo of 9.62%, 3mo of 6.48%, and 3mo of 0% (penalty)
6.97% (12mo) redeem on 11/1/23, 6mo of 9.62%, 4mo of 6.48%, and 3mo of 0% (penalty)
6.93% (13mo) redeem on 12/1/23, 6mo of 9.62%, 5mo of 6.48%, and 3mo of 0% (penalty)
  |     |   Comment #21
Not, to be "Mr. Spoonfeed" here, but just to make sure I am extra clear, can you (or someone) now list out the exact amount I'd get on redeeming the full I Bond on those dates, based on 10k? I think I calculated right, but I'm not sure. Like in the first scenario do I multiply 7.01% x 10,000 and then divide by 12 and then multiply x 11 since it is 11 months? or do I actually make a full years worth @ 7.01% even redeeming on Oct 1, 2023 even though purchase was Oct 28,2022. THANKS!!!!
  |     |   Comment #19
Rates are reset every six months; you should be getting (an annual) 9.62% for six months followed by 6.48% (annualized) on top of your account value after those first six months. Then you have to remove the prior three months of interest if you are redeeming before five years.

So on $10k, after six months you would have an approximate total of $10,481.
After another full six months you would have approximately $10,820.

If you redeemed 12 months later, in October, you would lose the last three months (Jul, Aug, Sep).
So your total redemption would be (approximately) $10,650 . . . a return of 6.5% over 12 months.
Or a little over 7%, if you want to play games and think of it as a $650 return over 11 months (since you funded at the end of October).

Redeeming in November (13 months later) would also yield around 7%, if you want to think of it as 12 months, instead.

As I indicated, these are just ballpark figures, to get you started; I'll let you do the math on the rest. There are (complicated) ways to get more precise dollar figures. But your perceived percentage return, for comparison's sake, is based on your own perception.

And a little bit of luck, too, if you're not careful.
Better to buy several days BEFORE the end of the month.
And better to redeem a day or two AFTER a month begins (earliest, on the 2nd).

It's not about precision, but circumspection . . . and perception.
Hope the above is somewhat useful / helpful to you!
  |     |   Comment #20
You will first need to watch your TD account to see whether the bonds will show an October or November issue date because TD was overburdened by last minute orders. Because the inflation component of the composite I Bond rate changes every 6 months, everything depends on the Issue date that TD will show for your purchase.
If October 2022, you will earn 4.81% (annualized 9.62%) through April 30. On May 1, 2023 your 6 months of interest earned from October through April will be compounded (added to your purchased principal) and the sum of the two amounts then becomes the new principal amount on which your interest would be computed for the next six months, at the new 3.445% rate (annualized 6.89%) through October 2023, except that if you redeem the bonds in October, you will lose the last 3 months of interest, from August through October inclusive. Then, your rate of return for the 12 months will be 4.81% plus (104.81 x 3.445% x 3/6, rounded to:) 1.80%, for a total of 6.61%. However, if your new bonds show an issue date of November, you will not be able to compute your exact rate until May 1, 2023, because only then will you know the rate that will apply for the 6 months from May through November.
  |     |   Comment #15
So in other words, the people who invested hours of stress and frustration last week, trying to use a worthless government website saved a maximum of $273.
  |     |   Comment #24
Why would anyone have waited to invest until just last week? The rate has been 9.62% for 6 months, and well publicized for the entire period.
  |     |   Comment #25
They/some waited to see what the next 6 month rate from Nov 1st would be with the release of the sept CPI and therefore know what the rate would be for 12 months (which would beat any CD rate on the horizon)...I bought gifts in the next to last week...See Dave's "verbose" (no offense intended) post which covers it quite well!
  |     |   Comment #22
I think next time Ken publishes his review he should mention $$$ values.
I am afraid that preoccupation with %%% and Rates, be it Annual or Annualized, is a bit misleading to many.
It doesn't seem obvious that Longer Hold and LOWER Rates still generate MORE Return on Principal where return of the Principal with some Gain added is guaranteed.
Minimum Gain achieved over Shortest Investment period - Guaranteed Rate of the Return.
From here things get complicated because I-Bond is weird VARIABLE Rate FIXED Income type of the Investment.
In Ken's example lower %%% Rates translate in More $$$ Gains

7.01% (11mo) redeem on 10/1/23, 6mo of 9.62%, 3mo of 6.48%, and 3mo of 0% (penalty)
6.97% (12mo) redeem on 11/1/23, 6mo of 9.62%, 4mo of 6.48%, and 3mo of 0% (penalty)
6.93% (13mo) redeem on 12/1/23, 6mo of 9.62%, 5mo of 6.48%, and 3mo of 0% (penalty)
these are Examples -Not the Rules
Another set of Examples will show different relationship, for Bonds issued in October 2021 Longer Hold and HIGHER Rate corresponds to More Return on Principal
3.88% (11mo) redeem on 10/1/22 - $3.56
4.16% (12mo) redeem on 11/1/22 - $4.16
4.39% (13mo) redeem on 12/1/22 - $4.39....
5.84% (18mo) redeem on 05/1/23 - $8.76

Beyond that there is no available data for making reliable estimates.
"Calculate the Value of Your Paper Savings Bond" of TD can be used for up to 05/2023 "Value as of" Calculations
Gets even more complicated when Fixed Rate is involved.

Anybody who can translate these Examples into reliable Purchase/Redemption strategy is welcomed.
  |     |   Comment #23
Is there a way of viewing the interest credits each month for your I-Bonds on the Treasury Direct site? I've never been able to access that info, - but just the aggregate current value of each purchase.
  |     |   Comment #27
It happens to be a wrong subject for this blog.
I-Bond is neither Deposit or Certificate. Bondholders have no deposit accounts at TD. US Treasury doesn't owe interest to Bondholders.
TD is using term "interest" so The Bondholders understand how investment gets priced or get confused about it.
I-Bond is Fixed Income Security of peculiar Non-Marketable, Variable and Composite Rates kind.
Bondholders have to Purchase it to own. The Purchase comes with the Right to sell it back to US Treasury at the timing of Bondholders discretion but the Price determined by Treasury. Based on multitude of factors The Treasury recalculates the Price, aka Redemption Value, on the first of every month. Until Redemption actually occurs that value is displayed to Bondholders as Current Value in effect during particular Redemption Period. Every piece of data since 1998 to Current and 6 Months Forward is available to Bondholders for use.
Bondholder how wants to see the difference between Current and previous Values may be suggested to use the Calculator.
Treasury Direct provides one, it is ubiquitously called "Calculate the Value of Your Paper Savings Bond" due to the legacy of paper EE-Bonds. It works fine for I-Bonds and other kinds.
There is no "aggregate" value. there is only Current Redemption Value, all other values are null and void 1st of every month.
There is aggregate "Interest Earned", but that has limited use and it resets every 6 months From Issue!
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