New U.S. Series I savings bonds carry a 5.51% composite annual rate for a six-month period, while a one-year redemption bar restricts access to buyers’ money.
The rate applies to bonds issued from Nov. 1, 2026, through April 30, 2027. TreasuryDirect lists a 1.40% fixed rate that remains with a bond for its life, alongside an inflation-linked portion that resets every six months. The 5.51% composite rate is for the initial six-month earning period; later rates depend on subsequent inflation adjustments.
The previous issue window, May 1 to Oct. 31, 2026, had a 4.26% composite rate. Treasury ties the variable portion to the non-seasonally adjusted Consumer Price Index for All Urban Consumers (CPI-U), which includes food and energy. The U.S. Bureau of Labor Statistics reported index readings of 330.213 in March 2026 and 336.940 in September 2026.
The terms restrict access to the money. I bonds cannot be redeemed during the first 12 months, and owners who cash them in before five years forfeit the final three months of interest. TreasuryDirect limits electronic purchases to $10,000 per calendar year for each Social Security number or employer identification number.
Eligibility requirements also narrow the pool of buyers. TreasuryDirect says individual owners must be U.S. citizens, U.S. residents or civilian employees of the U.S. government, and must have a Social Security number, a U.S. address and a U.S. bank account.
CNBC reported that Ken Tumin, founder of DepositQuest.com, called the rate “very attractive.” The outlet also quoted certified financial planner Eileen Olson saying I bonds are “more hassle than they’re worth” for many of her clients.
I bond interest is subject to federal income tax but exempt from state and local income tax. Owners may report interest each year or wait until redemption; a federal tax exclusion may apply when proceeds are used for qualified higher-education expenses. The next rate period begins May 1, 2027.
