Talk of The Villages Florida - View Single Post - ā€œIā€ Bond Interest Question
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Old 04-28-2023, 02:12 PM
Rainger99 Rainger99 is offline
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Quote:
Originally Posted by Badger 2006 View Post
The I Bond interest changes every 6 months. If cashed in prior to 5 years there is a 3 month interest penalty deducted. My question is at what interest rate is the penalty calculated since the interest rate may have changed numerous times, or is it an average of all the rates?
Check this out.

https://districtcapitalmanagement.co...drawal_penalty

As far as I can tell (I am not a financial expert), you will forfeit the most recent three months of interest. So whatever the current rate is, that would be the amount that you would lose.