The US Treasury has announced an I bond rate of 5.51% for bonds issued from November 1, 2026, through April 30, 2027. The annualized composite rate applies for the first six months after a bond is issued.

Key Takeaways

  • The new composite rate is higher than the 4.26% initial rate for bonds issued from May through October 2026.
  • The fixed rate rises to 1.40% and remains in place for the life of each new bond.

What makes up the I bond rate

The 5.51% composite rate combines a 1.40% fixed rate with an annualized inflation component of 4.08%. The fixed rate is the highest since 2006.

The Treasury’s May 2026 savings bond announcement set a 4.26% initial composite rate for I bonds issued from May through October 2026, including a 0.90% fixed rate. Both the fixed and inflation components have increased for the new issue period.

How the change affects bondholders

The Treasury announces fixed and inflation rates in May and November. A bond’s fixed rate stays the same for its life, while its inflation component changes every six months. The date of that change depends on the bond’s issue date, so existing holders do not all move to a new rate at the same time.

I bonds can earn interest for up to 30 years. They cannot be redeemed during the first year, and owners who cash them in before five years forfeit the last three months of interest.

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