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How the obligation rates work
Obligation rates have a variable and fixed rate portion, which the Treasury adjusts in May and November. Together, these are known as the “composite rate” of I or “profit rate”, which determines the interest paid to the bonds for a period of six months.
You can see the story of the two parts of I bond rate here.
The variable rate is based on inflation and remains the same for six months after your date of purchase, regardless of the next treasure announcement.
Meanwhile, the fixed rate does not change after purchase. It is less predictable and the treasure does not reveal how it calculates the update.
How the changes in obligation rate affect current owners
If you currently have obligations I, there is a six -month calendar for rate changes, which changes according to your original purchase date.
After the first six months, the variable yield goes to the following rate announced. For example, if you buy bonds in September from a given year, Your up -to -date prices Each year on March 1 and September 1, according to the Treasury. The Treasury adjusts obligation rates I in May and November, reflecting the latest inflation data.
For example, if you buy bonds I in March, your variable rate would start at 1.90% and go to the new rate of 2.86% in September. But your fixed rate would remain at 1.20%. This would bring your new composite rate to 4.06%.
