---
kind: "section"
citation: "31 C.F.R. § 359.8"
title: "31"
number: "359.8"
heading: "How does interest accrue on Series I savings bonds?"
url: "https://uscodex.org/cfr/31/359.8"
---

# §359.8. How does interest accrue on Series I savings bonds?


A bond accrues interest based on both a fixed rate of return and a semiannual inflation rate. A single, annual rate called the composite rate reflects the combined effects of the fixed rate and the semiannual inflation rate. For more information, see appendix B of [part 359](/cfr/31/part359.md).


## Notes

### Authority

Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3105.

### Source

Source: 67 FR 64278, Oct. 17, 2002, unless otherwise noted.