Overview
- The U.S. Treasury, which announced the change Thursday, set the composite rate on new I bonds at 4.26% for purchases dated May 1 through Oct. 31.
- The new rate combines a 0.90% fixed portion that stays for the life of the bond with a 3.34% variable portion that tracks inflation.
- Treasury calculates the composite as the fixed rate plus twice the semiannual inflation rate plus their product, which with a 1.67% semiannual CPI change rounds to 4.26%.
- Buyers face a 12‑month lockup, and cashing out in years one through five costs the last three months of interest, with interest able to accrue for up to 30 years.
- The update follows the 9.62% peak in May 2022 that drew a wave of buyers, and outlets report some renewed interest as March CPI rose 3.3% year over year.