Heads up, Awardtrail readers! The next I Bond interest rate is about to be announced, and here's what you need to know. The projected rate for I Bonds purchased between November 2025 and April 2026 is expected to be around 4.02%. This is comprised of a variable rate of 3.12% and a fixed rate of 0.90%. This matters because I Bonds are a safe, low-risk investment that also offers state tax exemption, making them attractive for diversifying your portfolio.

So, what does this mean for you? If you already own I Bonds, you'll earn the 3.12% variable rate (plus your bond's existing fixed rate) for the six months between November 2025 and April 2026. However, those looking to buy I Bonds might want to consider doing so before the end of October 2025. Why? Because the current fixed rate (1.10%) is slightly better than the projected new fixed rate (0.90%). Locking in that higher fixed rate now could be beneficial in the long run. Just remember, if you cash out your I Bonds before five years, you'll face a penalty of three months' worth of interest. Weigh that against the benefits before making any moves!