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Series I Savings Bond Rate Rises to 5.51 Percent

Savers can now earn a higher return on I bonds, with the new rate guaranteed for six months.

Updated on Oct. 30, 2026 in Saving

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The U.S. Treasury has raised the interest rate on Series I savings bonds to 5.51 percent, effective for new purchases. AI Illustration. Upload story photo >

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The U.S. Department of the Treasury has updated the interest rate for Series I savings bonds to 5.51 percent, up from 4.26 percent. This new rate is locked in for six months for households that purchase bonds by April 2027.

Why it matters

The increase in the combined rate, driven by inflation over the past six months, offers a higher return for savers looking to protect their cash against price increases. The bond also includes a 1.4 percent fixed rate, which is the highest level since November 2006.

The new 5.51% combined interest rate for Series I savings bonds marks an increase from the previous 4.26% level. Savers can invest up to $10,000 annually per household at these rates, which are guaranteed for six months.

The players

U.S. Department of the Treasury

The federal agency responsible for managing government debt and setting interest rates for savings products.

The details

The total I bond interest rate is the sum of a fixed rate and a variable inflation-based rate. The Treasury Department set this latest fixed rate at 1.4 percent, while the variable component reflects inflation data from the preceding six months. Investors should note that funds cannot be withdrawn for the first year, and early withdrawals within five years trigger a three-month interest penalty.

Timeline

  1. November 2006: Last time the fixed rate was 1.4 percent.

  2. November 2022: Last time the combined rate reached 5.51 percent.

  3. October 30, 2026: Official announcement date of the new rates.

  4. April 2027: Deadline for purchasing bonds at the 5.51 percent rate.

Money Landscape

This adjustment reflects the Treasury Department's I bond inflation-indexed rate methodology, which updates semiannually based on economic conditions. The current 5.51% rate signals a shift in the interest rate environment for risk-averse savers following recent inflationary trends.

Households looking to park cash in a government-backed savings vehicle should evaluate the $10,000 annual limit and the one-year withdrawal lock-in period. Consult a financial professional to discuss if these bonds fit your broader strategy for inflation protection and liquidity needs.

The takeaway

The latest 5.51% rate provides a new benchmark for savers to compare against other low-risk accounts. Keep in mind that withdrawing within five years results in a three-month interest penalty, making these bonds best suited for funds you do not need in the immediate future.

Further reading

For more on managing cash for the long term, visit our Saving section.

More information

To review eligibility or purchase bonds, visit the TreasuryDirect.gov portal.

Live Poll

Is now a good time for you to invest in Series I savings bonds?