Group 1 - The new annualized interest rate for I Bonds is set at 4.03%, effective from this Saturday, slightly higher than the previous 3.98% [1] - The interest rate is composed of the change in the Consumer Price Index (CPI) from March to September 2024, plus a fixed rate of 0.90%, which has decreased from the previous 1.1% [1] - I Bonds have a minimum holding period of 12 months, and early redemption within five years incurs a penalty of the last three months' interest [1] Group 2 - I Bonds offer tax and interest structure advantages, with interest compounded semi-annually and no reinvestment risk, as investors can choose to pay taxes on interest upon redemption [2] - Despite a decrease in attractiveness compared to the peak in 2022, I Bonds still hold value for investors as a hedge against inflation and interest rate uncertainty, particularly for individual investors outside of institutions [2]