I Bond Rate November 2026: 5.51% Explained

Series I savings bonds issued November 1, 2026 to April 30, 2027 start with a 5.51% composite rate, made from a 1.40% fixed rate and a 2.04% semiannual inflation rate. The composite can change every 6 months, so 5.51% isn't locked in for 30 years. Only the fixed part stays with that bond for its life.

What the 5.51% rate is made of

An I bond's rate has a fixed piece and an inflation piece. The fixed rate is set when you buy. The inflation piece moves. Treasury combines them into the composite your bond earns for its next 6-month earning period.

For new bonds issued November 1, 2026 to April 30, 2027, TreasuryDirect's calculation is:

`` 0.0140 + (2 × 0.0204) + (0.0140 × 0.0204) = 0.0550856 = 5.51%, rounded ``

The 2.04% figure is a semiannual inflation rate. It isn't the composite rate, and simply adding it to 1.40% won't give you the right answer. The formula doubles that inflation component and includes its interaction with the fixed rate.

The previous new-issue period, May 1 to October 31, 2026, had a 0.90% fixed rate and a 1.67% semiannual inflation rate. Those figures produced a 4.26% composite using this formula:

`` 0.0090 + (2 × 0.0167) + (0.0090 × 0.0167) ``

That earlier fixed rate stays with those earlier bonds. They don't acquire the new 1.40% fixed rate when Treasury makes another announcement.

This matters if you already own I bonds. A bond bought May 2026 through October 2026 earns 5.00% for its 6-month earning period starting November 2026 through April 2027. The 5.51% headline applies to new November 2026 through April 2027 issues, not every outstanding I bond.

When your bond's rate changes

Treasury announces fixed and inflation rates each May 1 and November 1. The new fixed rate applies to the next 6 months of new issues. The inflation rate resets for all I bonds, but each bond starts using it according to its own issue month.

Your bond's rate changes on a schedule tied to its issue month, every 6 months. November issues reset on May 1 and November 1; May issues reset on November 1 and May 1; January issues reset on July 1 and January 1.

An announcement date isn't always your reset date. If you own a January bond, the November announcement doesn't change what that bond earns that same month. Its next reset is January 1.

The inflation component follows the non-seasonally adjusted Consumer Price Index for All Urban Consumers, or CPI-U, for all items including food and energy. As inflation changes, your composite can rise or fall. The combined rate has a floor of zero.

You know the fixed rate attached to a new bond in this issue window. You don't know its composite for every later earning period, because inflation can move.

How I bonds earn and compound

I bond interest accrues monthly. Every 6 months, the prior 6 months of interest is added to principal, so the bond compounds semiannually.

Interest starts on the first day of the purchase month. The bond can keep earning for up to 30 years unless you cash it sooner. That long earning life doesn't make the opening composite a 30-year rate.

You receive the interest when you redeem the bond. If you leave an electronic bond alone until maturity, that's when it pays. It doesn't send you the monthly interest as spending money along the way.

If you need cash for regular expenses, remember that monthly accrual only describes how earnings build inside the bond. It doesn't put a payment in your bank account each month.

Comparing the headline rate alone can mislead you. The rate path affects what builds up. Your redemption date decides when you receive it, and whether an early redemption penalty applies.

Purchase limits and how to buy

New I bonds are electronic only through TreasuryDirect. Paper I bonds bought with a federal income tax refund stopped January 1, 2025. You can't use that former route for a new purchase.

The minimum electronic purchase is $25. Above that, you can buy any amount to the penny, up to the annual cap.

The calendar-year limit is up to $10,000 in electronic I bonds per Social Security Number or Employer Identification Number. Electronic EE bonds have a separate $10,000 limit. Buying EE bonds doesn't use the I bond allowance.

Limits follow the first-named owner. A gift counts toward the recipient's limit in the year they receive the bond, not toward the giver's limit. Keep that timing in mind before treating a gift as part of someone's annual allowance.

A child's linked account has the child's own $10,000 I bond limit and separate $10,000 EE bond limit. If you have an individual account and an entity account using the same SSN, you can buy up to the limits in each of those two accounts.

To buy, open or go to your TreasuryDirect account, select BuyDirect, choose I bonds and complete the registration. The buyer needs an SSN and must be a US citizen, US resident or civilian employee of the US. Electronic bonds also allow entity, trust and estate registrations.

New electronic I bonds are purchased through TreasuryDirect. They aren't a broker's new-issue Treasury auction listing. If you're used to buying marketable Treasuries through a brokerage account, this purchase uses a different route.

Holding period and early redemption penalty

You can redeem an I bond after 12 months. Until then, the money isn't available for an ordinary redemption. Don't put cash here if you may need to withdraw it during that first year.

After the hold ends, an early redemption penalty still matters. Cash a bond before it's 5 years old and you lose the last 3 months of interest.

TreasuryDirect's example is a bond cashed after 18 months: you receive the first 15 months of interest. The last 3 months are forfeited. That makes your holding period part of the return comparison, even after you clear the initial hold.

For bonds under 5 years old, the values shown in TreasuryDirect and its calculator already exclude the last 3 months of interest. Don't subtract that penalty again from the displayed value.

At 5 years, that early redemption penalty no longer applies. Waiting that long removes the penalty, but it doesn't freeze the composite rate you started with. Your bond continues following its own rate reset schedule.

Taxes on I bond interest

I bond interest is subject to federal income tax. It isn't subject to state or local income tax.

That exemption is specifically about income tax. Federal estate, gift and excise taxes can still apply, as can state estate or inheritance taxes. Don't read the state income tax exemption as an exemption from every possible tax.

You can defer reporting the interest until the year you redeem the bond or it matures and pays. Most people defer. You can instead choose to report interest each year.

The reporting choice affects when interest appears on your return. It doesn't change the bond's fixed rate or its inflation adjustment.

You get Form 1099-INT for the year you actually receive the interest. In TreasuryDirect, look under ManageDirect, then Manage My Taxes.

Using the proceeds for qualified higher education may let you exclude interest from federal tax if you meet the rules. The education exclusion has conditions. Read TreasuryDirect's education and tax information before assuming your use of the money qualifies.

This is general information, not tax advice.

I bonds vs T-bills and high-yield savings

I bonds are non-marketable savings bonds. T-bills are short-term marketable Treasuries, with terms such as 4 to 52 weeks. Both can be options for savings, but they give you different ways to hold and access the money.

An I bond has the 12-month hold and an annual purchase cap. Its composite follows inflation adjustments, with the fixed component staying put. It can earn for up to 30 years.

T-bills are sold at auction. The TreasuryDirect minimum is $100, while many brokers typically use $1,000 face value units. At a broker, a secondary market gives you a way to sell before maturity. I bonds don't have that market.

Check today's T-bill rates when comparing a bill with the current I bond composite. Keep the time periods in view: the I bond's opening rate can change after 6 months, and redeeming before 5 years costs interest. For the purchase process, see how to buy T-bills.

A high-yield savings account at a bank or credit union usually lets you withdraw money any business day, subject to the institution's rules. Its issuer can change the rate. Rates vary by bank and change often, so compare the rate available when you're deciding.

FDIC or NCUA coverage may apply within limits. For cash you might need soon, withdrawal access can matter more than an I bond's opening rate. A savings account doesn't impose the I bond's initial 12-month hold.

Who the current rate suits

The current I bond rate fits money you can leave alone for at least a year. It also fits if you want the inflation link and the state income tax treatment, and you're fine using TreasuryDirect within the annual purchase limit.

Think beyond the first earning period. Buying now attaches the 1.40% fixed rate to that bond, but later inflation adjustments will change its composite. Your plan should still work if that combined rate falls.

If this cash may cover an unexpected expense during the first year, a savings account's withdrawal access may fit better. If you want a shorter Treasury term or the ability to sell through a broker, consider T-bills. Compare the holding period you actually expect with the I bond's redemption rules.

Quick answers

What is the current I bond rate?

New I bonds issued November 1, 2026 to April 30, 2027 start at 5.51%. That combines a 1.40% fixed rate with a 2.04% semiannual inflation rate. Older bonds have composites based on their own fixed rates.

Does the 5.51% rate last for 30 years?

No. The fixed rate stays for the bond's life, but the inflation component resets every 6 months. A bond can earn for up to 30 years without keeping its original composite.

How much can I buy in I bonds each year?

The standard calendar-year limit is $10,000 in electronic I bonds per SSN or EIN. Gifts count toward the recipient's limit in the year received. Electronic EE bonds have a separate $10,000 limit.

When can I cash an I bond without a penalty?

You can cash it without the early redemption penalty once it's 5 years old. Redemption is available after 12 months, but before 5 years you lose the last 3 months of interest.

Are I bonds taxed by my state?

I bond interest isn't subject to state or local income tax. Federal income tax applies. State estate or inheritance taxes can still apply.

Confirm the live rate on TreasuryDirect before you buy, and check with a tax professional about your own return. For short-term marketable Treasuries, see today's T-bill rates.