[Code of Federal Regulations]

[Title 31, Volume 2]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 31CFR359.8]



[Page 451]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY

 

PART 359_OFFERING OF UNITED STATES SAVINGS BONDS, SERIES I--Table of Contents

 

                      Subpart A_General Information

 

Sec.  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.