The Impact of I Bond Interest Rate Drop to 4.3% on Investments.
The US Treasury has announced that the interest rate for Series I Savings Bonds will fall to 4.3% from May 1, down from the 6.89% paid out over the last six months. The bonds, which have helped investors keep pace with inflation since their introduction in 1998, have a fixed rate and an inflation rate that changes every six months. The fixed rate has been raised from 0.40% to 0.90%, but the semiannual inflation rate has been dropped to 1.69%, resulting in the lower combined interest rate. However, those who buy I bonds now will lock in a 0.90% fixed rate, the highest it's been since 2007.