The U.S. Department of the Treasury officially set the Series I savings bond composite rate at 5.51% for purchases made from November 1, 2026, through April 30, 2027. This represents a significant increase from the previous 4.26% rate offered during the May through October 2026 cycle. (1)
The most notable development for long-term investors is the permanent fixed-rate component, which jumped to 1.40%, its highest level since 2006. While the headline 5.51% composite rate will fluctuate every six months alongside inflation, this 1.40% fixed rate is locked for the 30-year life of the bond, guaranteeing a reliable real return above inflation.
How it works for an investor:
- A new bond earns 5.51% for its first six months. After that, it earns its own fixed rate plus whatever the inflation rate is at the next reset.
- Existing bonds keep their original fixed rates, so older bonds earn the new inflation component on top of a lower fixed rate.
- You can’t redeem an I bond in the first year. If you cash out before five years, you lose the last three months of interest.
- The annual purchase limit is $10,000 per person, and the interest is exempt from state and local tax.
The 1.40% fixed rate is the more important number for long-term holders. It’s the highest in years, and it’s a guaranteed return above inflation. The 5.51% headline will change as inflation moves.
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