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The U.S. Department of the Treasury has announced new rates for Series I bonds. Newly purchased I bonds will pay 5.51% annual interest from Nov. 1 through April 30, which is up from the 4.26% yield offered on purchases made through Oct. 31. The new rate includes a variable portion of 4.08% based on inflation data, and a fixed portion of 1.40%. The fixed rate is up from 0.90% announced in April, and the highest since 2006. Combined, the composite I bond rate is 5.51% after rounding, according to the Treasury. Amid the post-pandemic inflation peak, the I bond rate hit a record high of 9.62% in May 2022, and investors poured millions into the government-backed, nearly risk-free asset. As inflation cooled and I bond rates fell, many short-term investors redeemed I bonds. But investors could return as inflation pushes I bond rates back up, experts say. "I bonds are a lot more attractive at this point," said David Enna, founder of Tipswatch.com, a website that tracks Treasury inflation-protected securities, or TIPS, and I bond rates. I bonds are a lot more attractive at this point.David EnnaFounder of Tipswatch.com The consumer price index rose 3.7% in September 2026 from one year earlier, up from an annual pace of 3.4% in August, the Bureau of Labor Statistics reported in October. In September, some higher inflation came from the Iran war, which pushed up gasoline and energy costs. President Donald Trump's tariffs, new artificial intelligence data centers and demand for travel have also added to rising prices, economists say. Consumers expect rising inflation to continue. In September, the one-year inflation outlook jumped to 3.9%, the highest in more than three years, according to a New York Fed survey released in early October. How I bond rates work I bond rates have a variable and fixed rate portion, which the Treasury adjusts every six months, in May and November. The variable rate is tied to inflation — using the consumer price index percentage change over six months — and stays the same for six months after you purchase, regardless of the Treasury's next update. Your fixed rate doesn't change after purchasing I bonds. The Treasury doesn't disclose how it calculates fixed-rate adjustments, making it harder to predict. Some experts believe the I bond fixed rate could be driven by real, or inflation-adjusted, yields from five-year TIPS, according to Ken Tumin, founder of DepositQuest.com, a blog that tracks I bond rates, among other deposit accounts. "There's some uncertainty there," Tumin said. How the change affects current I bond investors If you currently own I bonds, rate updates follow a six-month timeline based on your original purchase date. After you own I bonds for six months, the variable yield changes to the next announced rate. But the fixed rate stays the same for the entire time you own the asset. For example, let's say you purchased I bonds in March when the variable rate was still 3.12% and the fixed rate was 0.9%. After six months, the variable portion would shift to 3.34%, announced in April 2026, but your fixed rate would remain 0.9%. You can earn I bond interest for up to 30 years, or less if you redeem the assets before that. However, you can't cash in I bonds for at least one year after you buy them. If you redeem within five years, you lose your last three months of interest.
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