It’s the first of November, which means a new rate cycle for Series I savings bonds. The next semi-annual composite rate for I bonds will be 1.76% (calculated with an inflation rate of 0.88% and a fixed-rate component of 0%).
I-bonds will receive an effective APY of 0.88% if they are purchased between November and April and redeemed after 12 months (assuming the next semi-annual rate cycle has a composite rate of 0%).
Savers who bought I-bonds between May 2012 and September 2012 will earn an effective 1.56% APY if redeemed after 12 months (early redemption penalty already accounted for).
I-bonds can be purchases at TreasuryDirect.gov — $10,000 limit per Social Security number.