Suppose you buy your I Bond in October. Your I Bond will grow at the earnings rate we announced in the previous May. Six months later--in April-- your I Bond will begin to earn the earnings rate announced in the previous November, and will continue to earn that rate for the next six months. So, twice a year--on the anniversary and semiannual anniversary of its issue date--the earnings rate of your I Bond can change to reflect any change in the semi-annual inflation rate. Remember, the fixed rate of return stays the same.

Note: I Bonds are meant to be longer-term investments. So, if you redeem an I Bond within the first five years, there's a 3-month earnings penalty. For example, if you redeem an I Bond after 18 months, you'll get 15 months of earnings.

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