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U.S.

Treasury Raises I Bond Interest Rate to 5.51 Percent

The U.S. Department of the Treasury has adjusted Series I savings bond rates to reflect recent inflation trends.

Updated on Oct. 30, 2026 in Saving

Isometric editorial illustration of a metal coin with an abstract geometric sprout, representing government savings bond interest rate adjustments.
The U.S. Treasury has increased the combined interest rate for Series I savings bonds to 5.51 percent, reflecting recent inflationary data. AI Illustration. Upload story photo >

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The U.S. Department of the Treasury has set the new combined interest rate for Series I savings bonds at 5.51 percent. This adjustment marks an increase from the previous rate of 4.26 percent.

Why it matters

The rate hike is driven by elevated inflation recorded over the past six months. This adjustment aims to keep the savings bonds aligned with current economic conditions.

The new combined rate of 5.51 percent is the highest level since November 2022. Additionally, the fixed rate component has risen to 1.4 percent, marking its highest point since November 2006.

The players

U.S. Department of the Treasury

This federal agency is responsible for managing the United States government revenue and overseeing the issuance of savings bonds.

The details

The combined interest rate is calculated by adding a fixed rate set by the Treasury to a variable rate based on inflation trends. Investors should note that funds remain locked for the first year, and withdrawals within five years result in a three-month interest penalty.

Timeline

  1. The new interest rates were officially announced on October 30, 2026.

  2. The 5.51 percent combined rate is guaranteed for six months for bonds purchased through April 2027.

  3. The fixed rate of 1.4 percent reached a level not seen since November 2006.

  4. The combined rate of 5.51 percent was last seen in November 2022.

Market Dynamics

This adjustment follows the established framework of the U.S. Treasury Series I savings bond program guidelines. It reflects the ongoing effort to balance inflation protection with the government's current borrowing costs.

Investors can purchase up to $10,000 in I bonds annually to lock in the 5.51 percent rate for the next six months. Because these funds are illiquid for the first year, buyers should ensure they do not require immediate access to this capital.

The takeaway

Investors looking for a government-backed return should weigh the current 5.51 percent rate against the requirement to keep funds invested for at least 12 months. Early withdrawal penalties apply to anyone who needs to access their cash within a five-year window.

Further reading

For more information on managing your assets, visit our Saving section.

More information

For more details or to make a purchase, visit the Official site for purchasing I bonds.

Live Poll

Is now a good time for you to invest in Series I savings bonds?