The I bond rate for bonds bought from November 2026 through April 2027 is 5.51%, up from 4.26% for May through October. It combines a new 1.40% fixed rate, which stays the same for the life of the bond, with a 2.04% six-month inflation rate. You can buy up to $10,000 per person per calendar year, only online at TreasuryDirect.
Key takeaways
- TreasuryDirect lists a 5.51% composite rate for I bonds issued November 1, 2026 to April 30, 2027, up from 4.26% for May through October 2026.
- The fixed rate is 1.40% (up from 0.90%) and never changes for a bond. The inflation part, 2.04% for six months, resets every six months.
- The limit is $10,000 in electronic I bonds per person per calendar year, with a $25 minimum. Paper I bonds are no longer sold.
- You cannot cash an I bond for 12 months, and if you cash it before 5 years you lose the last 3 months of interest.
- I bond interest is subject to federal income tax but not state or local income tax. You can usually wait to report it until you cash the bond.
The U.S. Treasury has reset the interest rate on I bonds, and it jumped. Bonds bought from November 1, 2026 through April 30, 2027 earn a 5.51% composite rate, compared with 4.26% for bonds bought from May through October. An I bond is a savings bond you buy from the government whose rate rises with inflation, so it protects your savings from rising prices.
This matters now because inflation has been running high. If you are looking for a safe place to park cash, this new rate is worth understanding before you buy.
What is the new I bond rate?
TreasuryDirect, the Treasury’s savings bond website, lists the new rates as of November 1, 2026. Every I bond rate has two parts: a fixed rate and an inflation rate. Here is how they compare with the previous period.
| May–Oct 2026 | Nov 2026–Apr 2027 | |
|---|---|---|
| Fixed rate | 0.90% | 1.40% |
| Inflation rate (6 months) | 1.67% | 2.04% |
| Composite rate (annual) | 4.26% | 5.51% |
Treasury sets both rates every May 1 and November 1. The composite rate is the number you see headlines about, and it comes from this formula: fixed rate + (2 × the six-month inflation rate) + (fixed rate × the six-month inflation rate).
Here is the math: 1.40% + (2 × 2.04%) + (1.40% × 2.04%) = 1.40% + 4.08% + 0.03% = 5.51%.
How does an I bond work?
Think of it as two layers of interest stacked together.
- The fixed rate is locked in the month you buy. TreasuryDirect says it “never changes” for that bond. A bond bought now keeps its 1.40% for its whole life.
- The inflation rate is reset every six months, starting from the month you bought. If prices rise faster, this part goes up. If they cool off, it goes down. Treasury’s rate page points to the Bureau of Labor Statistics’ consumer price data as the source of inflation.
Interest is earned monthly and compounded every six months. That is why the 5.51% is an annual rate that only applies to your first six months. After that, your bond gets whatever new inflation rate Treasury sets on May 1, 2027, plus your same 1.40% fixed rate. Your total could be higher or lower than 5.51%.
How much would you earn? An example
This is an illustration, not a prediction. Say you buy $5,000 of I bonds in November 2026.
- First six months: $5,000 × 5.51% ÷ 2 = about $137.75.
- For comparison, the same $5,000 at the old 4.26% rate would earn $5,000 × 4.26% ÷ 2 = $106.50 over six months.
- On the full $10,000 limit, the new rate earns about $275.50 over the first six months, versus $213.00 at the old rate. That is roughly $62.50 more.
These are rough figures. Treasury credits interest monthly and compounds it, so your actual balance will differ by a few cents. To see how a different rate grows over time, try the savings calculator or the compound interest calculator.
What are the rules for buying I bonds?
TreasuryDirect lists these rules on its I bonds page:
| Rule | What it says |
|---|---|
| Yearly limit | Up to $10,000 in electronic I bonds per person per calendar year |
| Minimum purchase | $25, or any amount above that to the penny |
| Paper bonds | Not sold. Since January 1, 2025, I bonds are electronic only |
| Earliest you can cash | After 12 months |
| Early cash-out penalty | Before 5 years, you lose the last 3 months of interest |
| Longest term | 30 years |
The limit is counted per calendar year. A bond you buy in November or December 2026 uses up part of your 2026 limit.
What happens if you cash out early?
You cannot cash an I bond at all during the first 12 months, so only put in money you will not need soon. After that, cashing out before year five costs you the last three months of interest.
Illustration: if you hold $5,000 at about 5.51% and cash out in year two, three months of interest is roughly $5,000 × 5.51% ÷ 4 = $68.88 that you give up. Compare that with whatever you could earn elsewhere, such as in a bank savings account. The Fed’s latest rate decision holds short-term rates at 3.75%–4.00%, which influences what banks pay.
Are I bonds taxed?
Yes, at the federal level only. TreasuryDirect says I bond interest is subject to federal income tax but not state or local income tax. The IRS says you generally do not include the interest in income until the earlier of when the bond matures or when you redeem it. You can instead choose to report it each year.
If you use the money for qualified higher education costs, some or all of the interest may be excluded from income. You figure that on Form 8815.
What to do now
- Decide if you can lock the money up. You cannot touch it for 12 months, so keep your emergency fund somewhere you can reach it.
- Set up a TreasuryDirect account. I bonds are only sold electronically there.
- Pick an amount up to $10,000. The minimum is $25. Remember the limit counts per calendar year.
- Know the plan for the inflation part. The 5.51% lasts for your first six months. Your next rate is set on May 1, 2027.
- Compare your options. Check what your bank or a Treasury bill pays, and run your own numbers with the inflation calculator to see how much buying power you are protecting.
- Mark your calendar. Note your 12-month date, your 5-year date and the date your rate resets.
If a piece of this does not fit your situation, a fee-only financial planner or tax professional can help you decide. This post is general information, not personal advice.
Frequently asked questions
What is the I bond rate for November 2026?
The composite rate for I bonds issued from November 2026 to April 2027 is 5.51%, according to TreasuryDirect. That figure is made of a 1.40% fixed rate and a 2.04% inflation rate for six months. The previous rate, for bonds issued May through October 2026, was 4.26%. Treasury sets the fixed and inflation rates every May 1 and November 1.
How much can I invest in I bonds?
You can buy up to $10,000 in electronic I bonds per Social Security number or employer identification number each calendar year. The minimum purchase is $25, and you can buy any amount above that to the penny. Since January 1, 2025, I bonds are only available electronically, so there is no longer a separate paper limit.
Does the 5.51% rate last for a year?
No. The 5.51% applies only to your first six months of earning. Your fixed rate of 1.40% stays for the life of the bond, but the inflation part resets every six months from the month you bought. The next inflation rate is set May 1, 2027, so your later returns could be higher or lower than 5.51%.
Can I cash out an I bond early?
Not in the first 12 months. After that you can cash it, but if you redeem before 5 years you forfeit the last 3 months of interest. After 5 years there is no penalty. An I bond keeps earning interest for up to 30 years unless you cash it sooner.
Are I bonds taxed?
I bond interest is subject to federal income tax but not state or local income tax, according to TreasuryDirect. The IRS says you generally do not have to include the interest in income until the earlier of when the bond matures or when you redeem it, though you can choose to report it each year. Interest used for qualified higher education costs may be excluded.