I Bonds — compound interest?
Are the interest earned compounded until collected?
Terry Says
An I bond earns interest monthly from the first day of the month in the issue date. The interest accrues (is added to the bond) until the bond reaches 30 years or you cash the bond, whichever comes first. The interest is compounded semiannually.
But because of the penalty calculation for early wihtdrawal, you won’t see the interest hit your account until the 5th month after purchase.
