Series I bond rate is 5.51% through April 2027

Key Points:

• The U.S. Treasury announced that Series I bonds purchased from Nov. 1 through April 30 will yield an annual interest rate of 5.51%, up from 4.26% for bonds bought through Oct. 31.
• The new composite rate consists of a fixed rate of 1.40%, the highest since 2006, and a variable inflation-based rate of 4.08%, reflecting recent inflation trends.
• Inflation pressures, including factors like the Iran war, tariffs, AI data center demand, and travel, have contributed to rising consumer prices and increased the attractiveness of I bonds.
• I bond interest rates adjust every six months with a fixed rate that remains constant for the bond's life and a variable rate tied to inflation that resets semiannually based on purchase date.
• Current I bond holders see their variable rates update every six months after purchase, but their fixed rates remain unchanged; bonds must be held at least one year before redemption, with penalties for cashing out before five years.