I bonds now pay 5.51%: the November 2026 rate explained
Series I savings bonds bought until April 2027 pay 5.51%, with the highest fixed rate in about 20 years. How the rate works and the rules to know.
Series I savings bonds are issued by the US Treasury and protect your savings against inflation. The I bond rate for bonds bought between November 2026 and April 2027 is 5.51%, and the fixed part of that rate is the highest in almost 20 years. This guide explains how the November 2026 I bond rate is made up, the rules on buying and cashing in, how I bonds are taxed, and whether they are a good deal for your savings.
How the I bond rate is made up
Every I bond earns a combination of two rates. The fixed rate is 1.40%. It stays with the bond for its whole life of up to 30 years, and it is the highest fixed rate since November 2006. The inflation rate is 4.08% a year, or 2.04% for six months, based on consumer price inflation from April to September 2026. It resets every six months for all I bonds, old and new.
The composite rate combines the two and comes to 5.51%. Because the inflation part resets, this rate applies for six months at a time, after which your bond earns the new inflation rate plus its 1.40% fixed rate. For example, $10,000 earning 5.51% would make about $275 in the first six months.
Why the fixed rate matters so much
The fixed rate is your guaranteed return above inflation for as long as you hold the bond. A bond bought now will always earn 1.40% more than inflation, whatever happens to prices, for up to 30 years. Many I bonds bought in earlier years have a fixed rate of 0%, meaning they only keep pace with inflation. That is why buyers pay close attention to the fixed rate each May and November.
The rules for I bonds
Purchase limit. You can buy up to $10,000 per person per calendar year through TreasuryDirect. A married couple can therefore buy $20,000 a year between them.
Lock-up period. You must hold the bond for at least one year before you can cash it in, so do not use money you might need within 12 months.
Early redemption penalty. If you cash in before five years, you lose the last three months of interest. After five years there is no penalty.
Tax. Interest is exempt from state and local income tax. Federal tax can be deferred until you cash in the bond or it reaches final maturity. If you use the money for qualified higher education costs and meet the income rules, the interest may also be exempt from federal tax.
How to buy I bonds
Buy online at TreasuryDirect.gov, where you open an account with your Social Security number and bank details. Interest is credited for the whole month in which you buy, so buying late in a month still earns that month's interest. That makes the last few business days of a month a popular time to buy, but leave a little margin so the purchase settles in time.
Is the I bond a good deal now?
With the Federal Reserve's target range at 3.75% to 4.00% and inflation at 3.7% in September 2026, a 1.40% real return guaranteed for up to 30 years is attractive for long-term, safe savings. Few other risk-free investments offer protection against inflation plus a guaranteed real return, apart from Treasury inflation-protected securities.
For money you may need within a year, a high-yield savings account or Treasury bills keep it easier to reach; see our guide to emergency funds and high-yield savings. For retirement, I bonds work best alongside tax-advantaged accounts such as a 401(k) or IRA; see 401(k) and IRA limits for 2026.
Frequently asked questions
What is the I bond rate for November 2026?
5.51%, made up of a 1.40% fixed rate and a 4.08% annual inflation rate.
How much can I invest in I bonds each year?
$10,000 per person per calendar year through TreasuryDirect.
When can I cash in an I bond?
After one year, but you lose three months of interest if you cash in before five years.
Sources
This article is general information, not financial advice.