Series I Savings Bonds, commonly known as I Bonds, are a type of savings bond issued by the U.S. government. ... You can redeem an I Bond after 12 months. However, ...

Redemption: You can’t redeem I bonds until you have owned them for at least one year. However, if you redeem them after fewer than five years, you give up the previous three months of interest.

How to Redeem Series I Bonds This depends on whether the I bond is electronic or paper. Electronic bonds are paid out to the owner automatically when the bond matures.

The variable rate on Series I Savings Bonds drops to 3.39% on bonds sold ... CDs and T-Bills are better investments for cash needed in 1 year due to the 3-month penalty for early I-Bond redemption.