U.S. Treasury Raises Series I Bond Rate to 5.51%

The U.S. Department of the Treasury announced that Series I savings bonds will pay a 5.51% annual interest rate for purchases made between November 1 and April 30. This is an increase from the 4.26% yield available through October 31.

The new composite rate includes a 4.08% variable portion based on inflation data and a 1.40% fixed portion. The fixed rate is the highest recorded since 2006. This adjustment follows a September 2026 consumer price index increase to 3.7% reported by the Bureau of Labor Statistics.

Officials attribute the rising inflation to several factors, including the Iran war, the development of artificial intelligence data centers, and tariffs implemented by President Donald Trump. While the current rate remains below the May 2022 peak of 9.62%, the increase indicates that I bonds are becoming more attractive to investors as inflation pressures persist.