How I Bond rates work
A Series I savings bond earns a composite rate made of two parts: a fixed rate that stays with the bond for life, and an inflation rate that changes every six months with the Consumer Price Index. The current composite rate is 4.26% (fixed rate 0.90%, six-month inflation rate 1.67%), for bonds issued from May 1, 2026.
In brief
- New rates are announced each May 1 and November 1.
- The next reset is November 1, 2026.
- The fixed rate is locked in on the day you buy; the inflation part moves.
- You can buy up to $10,000 per person per calendar year.
- A bond cannot be cashed for 12 months, and cashing before 5 years costs the last 3 months of interest.
What are the two parts of the rate?
The fixed rate is set by the Treasury when the bond is issued and never changes for that bond. A bond bought when the fixed rate was 0% keeps 0% for thirty years; a bond bought at 1.3% keeps 1.3%.
The inflation rate is the change in consumer prices over six months, measured by the CPI-U index (all urban consumers, not seasonally adjusted) from the Bureau of Labor Statistics. The May rate uses the change from September to March; the November rate uses March to September.
The current composite rate is 4.26% (fixed rate 0.90%, six-month inflation rate 1.67%), for bonds issued from May 1, 2026.
How are they combined?
The Treasury combines them like this, where the inflation rate is the six-month figure:
composite rate = fixed rate + (2 × inflation rate) + (fixed rate × inflation rate)
The inflation figure is doubled to turn six months into a year, and the last small term accounts for earning the fixed rate on the inflation adjustment. The composite can never fall below zero, so in a period of falling prices a bond stops earning but does not lose value. The Treasury publishes each period's rates on TreasuryDirect.
When does my bond's rate change?
Every six months from the month you bought it, not on the announcement dates. A bond bought in February gets each new inflation rate in February and August. So when new rates are announced on November 1, 2026, an existing bond switches to them at its own next six-month mark, and until then it keeps earning the previous rate.
This is why the weeks before a reset matter to buyers: buying before the reset locks in the current fixed rate for life and the current inflation rate for six months, with the new inflation rate following. The I-Bonds page shows what is already known about the next inflation rate from published price data.
What are the rules for buying and cashing in?
- Limit: $10,000 per person per calendar year, bought electronically through TreasuryDirect. Paper I Bonds through a tax refund are no longer offered.
- Lock-up: no redemption in the first 12 months.
- Early penalty: cashing in before 5 years forfeits the last 3 months of interest.
- Life: a bond earns interest for up to 30 years.
- Tax: interest is subject to federal income tax, which can be put off until the bond is cashed, and is exempt from state and local income tax.
Interest is added to the bond's value monthly and compounds every six months. Nothing is paid out until you cash it.
How is an I Bond different from TIPS?
Both protect against inflation using the same price index, but they are different things. An I Bond is a savings bond: it is not traded, its value never falls, and purchases are capped. TIPS are marketable Treasury securities: they trade daily, their price can fall when interest rates rise, and there is no practical purchase limit. See TIPS and real yields.
This site reports the rates. Whether either suits you depends on your circumstances, and this is not advice.
Questions and answers
What is the current I Bond rate?
The current I Bond composite rate is 4.26% for bonds issued from May 1, 2026: a 0.90% fixed rate plus a six-month inflation rate of 1.67%. The next reset is November 1, 2026.
When do I Bond rates change?
The Treasury announces new rates each May 1 and November 1; the next is November 1, 2026. An existing bond takes up each new inflation rate every six months counted from its own issue month.
How much can I buy in I Bonds each year?
Up to $10,000 per person per calendar year, bought electronically through TreasuryDirect.
Can an I Bond lose value?
No. The composite rate cannot go below zero, so a bond's value never falls. Cashing in before five years costs the last three months of interest.
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Not investment advice. This guide explains public records and how this site presents them. It makes no recommendation to buy or sell anything. All guides · All questions · Report an error