Overview
- New Series I savings bonds now pay a 4.26% annual rate for purchases dated through Oct. 31, up from 4.03% in the prior six-month window.
- The composite rate combines a fixed share that locks in for the life of the bond and an inflation-indexed share that resets every six months based on CPI.
- Several outlets report a 0.90% fixed rate, while the inflation-linked portion is described with differing figures because some cite the six‑month CPI change and others its annualized version.
- Experts say 4.26% compares well with short-term options such as Treasury bills near the high‑3% range and top money market or CD yields, though those alternatives offer easier access to cash.
- I bonds require at least one year before you can redeem, they forfeit the last three months of interest if cashed in before five years, and purchases are capped at $10,000 per person per year on TreasuryDirect.