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How does the interest rate on an iBonD work?

The actual rate of interest for an I bond is a combination of the fixed rate and the inflation rate. The combined rate can, and usually does, change every 6 months. I bonds protect you from inflation because when inflation increases, the combined rate increases. Because inflation can go up or down, we can have deflation (the opposite of inflation).

How much does an I bond cost?

Starting as low as $25, I bonds are inflation-adjusted U.S. savings bonds that are available electronically on TreasuryDirect. There is a $10,000 annual purchase limit for individuals, with an additional $5,000 eligible each calendar year as a part of a tax refund using IRS Form 8888.

Where can I buy an I bond?

U.S. savings bonds, including Series I bonds, can only be purchased online from the U.S. Treasury, using the TreasuryDirect website. You can also use your federal tax refund to purchase Series I bonds. 1

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