I-Bonds are a type of U.S. savings bond designed to protect the value of your cash from inflation. I-Bonds are issued by the U.S. Treasury.

The current interest rate for US I-Bonds is 9.62%. Interest is earned on the bond every month. The interest is compounded semiannually: twice a year, the interest the bond earned in the previous six months is added to the bond's principal value; then, interest for the next six months is calculated using this adjusted principal. I-Bonds can be purchased through October 2022 at the current rate of 9.62%. That rate is applied to the 6 months after the purchase is made. The interest and principal are paid to you when you cash the bond.

I-Bonds have a maturity of 30 years. Please note that:

  • I-Bonds can only be cashed out after a minimum of 1 year. This means that funds transferred to the I-Bonds bucket will not be accessible to withdraw or spend for at least 1 year after the date of purchase.

  • You can cash out after 1 year , you'll lose the last 3 months of interest.

  • There is no interest penalty for cashing out after five years.

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