By Lisa Gerstner
From Kiplinger’s Personal Finance
Q: I see that U.S. Series I Savings Bonds are currently paying a rate of paying 9.62 percent. How is the interest rate determined?
A: The composite rate has two parts: a fixed rate, which remains the same for the life of the bond, and an inflation rate, which is based on the consumer price index.
Each May and November, the U.S. Treasury Department announces a new fixed rate and inflation rate that apply to bonds issued during the following six months. The inflation rate changes every six months from the bond’s issue date. If your bond is issued in October 2022, for example, the current inflation rate will apply through March 2023. The fixed rate for I bonds issued from May through October 2022 is 0 percent….