Treasury’s Bureau of the Public Debt announced Monday earnings rates for Series I Savings Bonds and Series EE Savings Bonds, issued from Nov. 2010 through April 2011. Earnings rates for I bonds and fixed rates for EE bonds are set each May 1 and Nov. 1, the Bureau states.
Interest accrues monthly and compounds semiannually, the Bureau states. Bonds held less than five years are subject to a three-month interest penalty. Both series have an interest-bearing life of 30 years; the EE bond fixed rate applies to a bond’s 20-year original maturity.
The earnings rates are as follows, according to the Bureau:
I Bond Earnings Rate of 0.74% includes Fixed Rate of 0.00%
The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the life of the bond, and the semiannual inflation rate. The 0.74% earnings rate for I bonds bought from Nov. 2010 through April 2011 also will apply for the succeeding six months after the issue date. The earnings rate combines a 0.00% fixed rate of return with the 0.74% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The CPI-U increased from 217.631 in March 2010 to 218.439 in Sept. 2010, a six-month increase of 0.37%.