The new headline 5.27% I bond rate only applies to new bonds. Your new rate for an existing I bond is likely much lower, and you may be better off cashing it out for a CD.

• If you've held your I bond for at least a year, you can move your funds to a better-paying CD. The issue date of your bond can tell you the optimal time to cash in, with 15 months being the sweet spot for many 2022 bond purchasers.

• But what has an even bigger impact this cycle is that anyone buying a new I bond between November 2023 and May 2024 will receive a fixed-rate component of 1.30%.
  That is notably higher than the 0.00% fixed rate assigned to I bonds purchased last year, and explains why new I bonds purchased today will pay a higher rate of 5.27% for the initial six months, while 2022 I bonds will only pay 3.94%.