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Breaking: I Bond Rates Rise, Offering Competitive Returns Amidst Inflation
Washington D.C. – Investors seeking to protect their savings from inflation now have a more attractive option as I bond rates increased on May 1, 2024, to 3.98% for bonds purchased from May 1 to Oct. 31, 2025 – up from 3.11% for the previous six-month period. This adjustment means both new purchasers and holders of existing I bonds will see an increase in their returns, with current bondholders experiencing a rise of almost a full percentage point in their next six-month rate.
I bonds are a U.S. Treasury security designed to safeguard purchasing power during periods of rising prices. Their rate is adjusted every six months to align with inflation trends, offering a unique blend of safety and potential earnings. Unlike other investments, I bonds can be redeemed anytime after one year, though they are designed to be held for up to 30 years.
Investopedia actively tracks rates from over 200 banks and credit unions nationwide to identify top-paying savings and CD accounts. To qualify for inclusion in their rankings, institutions must be federally insured – either by the FDIC for banks or the NCUA for credit unions – and accounts must have a minimum initial deposit of no more than $25,000, with no maximum deposit below $5,000.Banks must also be available in at least 40 states.
