Series I savings bonds have gotten a lot of attention in the last two years and have certainly performed well.
The I bonds currently being sold carry an interest rate of 6.89%. But the rate may not be so attractive in the future. There are two components to the total interest rate on I bonds: a fixed rate and a rate that adjusts every six months to match inflation.
The bonds available from now until April have a fixed rate of 0.4%. The rate of adjustment to inflation is 6.49%. That rate is calculated every May 1 and November 1, using the consumer price index for the last six months. Combining the two interest rates gives you 6.89%.
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