I Bonds Now Pay 5.51%: Are They Worth Buying in November 2026?
Series I savings bonds bought from November 2026 to April 2027 earn 5.51%, including a 1.40% fixed rate. Learn how I bonds work, the limits, the penalty and how to buy them.
Series I savings bonds are back in the spotlight. I bonds bought from November 1, 2026 through April 30, 2027 earn a composite rate of 5.51% for their first six months, including a 1.40% fixed rate that lasts for the life of the bond. Here's how they work and who they make sense for.
How I bond interest works
An I bond's rate has two parts:
- Fixed rate (1.40% for bonds bought now): locked in for up to 30 years.
- Inflation rate (variable): reset every six months, in May and November, based on the Consumer Price Index. For this period it is 4.11% annualized.
Together they form the composite rate (5.51% now). Each bond's rate resets every six months from its purchase date, so after the first six months your rate will be the 1.40% fixed rate combined with whatever the new inflation rate is. Interest compounds semiannually, and the composite rate can't fall below zero.
Why the fixed rate matters
A 1.40% fixed rate means that, over the life of the bond, you earn roughly inflation plus 1.40%. That's a guaranteed "real" return backed by the U.S. government. Fixed rates were 0% for several years in the past, so locking in a higher one is valuable for long-term holders.
The rules
| Rule | Detail |
|---|---|
| Purchase limit | $10,000 per person per calendar year in electronic bonds (TreasuryDirect) |
| Minimum holding | 12 months, with no access at all before then |
| Early redemption penalty | Lose the last 3 months of interest if cashed before 5 years |
| Maximum term | Interest for up to 30 years |
| Taxes | Federal tax only; exempt from state and local income tax |
Federal tax can be deferred until you cash the bond, and interest may be tax-free if used for qualified higher-education expenses, subject to income limits.
I bonds vs other safe options
| I bonds | High-yield savings | CDs / T-bills | |
|---|---|---|---|
| Access | Locked 12 months | Anytime | At maturity (CD penalty if early) |
| Inflation protection | Yes | No | No |
| Insurance/backing | U.S. government | FDIC/NCUA | FDIC / U.S. government |
| State tax | Exempt | Taxed | CDs taxed; T-bills exempt |
More on cash options: high-yield savings vs money market vs CDs.
Who should consider I bonds?
- People with a fully funded emergency fund who want extra inflation-protected savings.
- Savers with goals 1–5+ years away who won't need the money in the first year.
- Conservative investors who value a guaranteed real return.
Not ideal for: your only emergency savings (because of the 12-month lock) or long-term retirement money that could be invested for higher growth in diversified index funds.
How to buy
- Open an account at TreasuryDirect.gov (the only place to buy electronic I bonds).
- Link your bank account.
- Buy any amount from $25 up to $10,000 per calendar year.
- Buy before April 30, 2027 to lock in the 1.40% fixed rate.
Timing tip: the rate is set by your purchase month, and interest is credited for the whole month, so buying near the end of a month still earns that full month.
Key takeaways
- I bonds bought Nov 2026–Apr 2027 earn 5.51% initially, with a 1.40% fixed rate for life.
- The inflation portion resets every six months.
- Limit: $10,000 per person per year; locked for 12 months; 3-month interest penalty before 5 years.
- Interest is free from state and local income tax.
Sources: TreasuryDirect I bond rate announcement (November 2026). Rates change every May and November.
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