The U.S. Department of the Treasury has announced updated rates for Series I savings bonds.
I bonds purchased between November 1 and April 30 will earn a composite annual interest rate of 5.51%, an increase from the 4.26% yield available on purchases made through October 31.
The new rate combines a variable inflation-based component of 4.08% with a fixed rate of 1.40%. The fixed portion marks an increase from the 0.90% announced in April and represents the highest level since 2006, according to the Treasury.
After rounding, the composite I bond rate stands at 5.51%.
During the post-pandemic inflation peak, I bond rates reached a record high of 9.62% in May 2022, drawing significant investment into the government-backed, low-risk securities. As inflation eased and rates declined, many short-term investors redeemed their holdings. However, industry experts suggest renewed interest could emerge as inflationary pressures push rates higher.
“I bonds are a lot more attractive at this point,” said David Enna, founder of Tipswatch.com, which monitors Treasury inflation-protected securities (TIPS) and I bond rates.
I bonds are a lot more attractive at this point.
David Enna
Founder of Tipswatch.com
The Bureau of Labor Statistics reported in October that the consumer price index rose 3.7% in September 2026 compared with the previous year, up from an annual pace of 3.4% in August.
Economists point to several contributors to the September uptick, including the Iran war, which drove up gasoline and energy costs, as well as President Donald Trump’s tariffs, new artificial intelligence data centers, and strong travel demand.
Consumer inflation expectations are also climbing. A New York Federal Reserve survey released in early October showed the one-year inflation outlook jumping to 3.9%, the highest level in more than three years.
How I bond rates work
Series I bond rates consist of fixed and variable components, which the Treasury adjusts semiannually in May and November.
The variable rate is linked to inflation, specifically the consumer price index change over a six-month period, and remains locked for six months after purchase regardless of subsequent Treasury updates.
The fixed rate, once set at purchase, does not change for the life of the bond. The Treasury does not publicly disclose its formula for fixed-rate adjustments, making future movements difficult to forecast.
Ken Tumin, founder of DepositQuest.com, which tracks I bond rates and other deposit products, suggests the fixed component may correlate with real, inflation-adjusted yields on five-year TIPS.
“There’s some uncertainty there,” Tumin said.
How the change affects current I bond investors
For existing I bond holders, rate adjustments follow a six-month schedule tied to the original purchase date.
After holding I bonds for six months, the variable yield updates to the next announced rate, while the fixed rate remains constant throughout the bond’s life.
For instance, an investor who purchased I bonds in March with a variable rate of 3.12% and a fixed rate of 0.9% would see the variable portion shift to 3.34% after six months under the April 2026 announcement, while the fixed rate stays at 0.9%.
I bonds accrue interest for up to 30 years unless redeemed earlier. Holders cannot redeem I bonds within the first year of purchase, and redemptions made within five years forfeit the last three months of interest.
