Series I Bond

Series I Bond

In the United States, a savings bond with either a fixed interest rate or an inflation-indexed interest rate. The inflation-indexed version pays a fixed amount plus an amount adjusted every six months according to the Consumer Price Index. For both types of Series I bonds, the interest rate is announced twice annually. These bonds are sold at face value and pay par upon maturity, which is 30 years after purchase. Series I bonds not held for at least five years are subject to a redemption penalty. Federal taxes on interest are deferred until redemption or maturity. Savings bonds are non-transferable and must either be held or redeemed.