Savings bonds

I Bonds: 5.51%, backed by the U.S. government

Series I savings bonds earn a fixed rate plus inflation, can never lose value, and skip state income tax. The catch: $10,000 a year per person, and your money is locked for the first year.

Rate for bonds bought through April 30, 2027. The Treasury announces the next rate on May 1, 2027; this page updates when it does.

On $10,000 at 22% federal and 5% state tax: I Bonds keep about $430 a year, a 1-year Treasury bill $338, and the best 1-year CD we track (Schwab, 4.80%) $350.

The rate, in plain terms

1.40% fixed

Set when you buy and kept for the life of the bond, up to 30 years.

+ inflation

Resets every six months from your purchase month, based on the consumer price index. Currently 4.08% a year.

= 5.51% now

For your first six months. If inflation falls, the rate falls, but the bond can never lose value.

The catches

$10,000 a year per person, electronic, at TreasuryDirect.gov. Not sold at brokerages.
Locked for 12 months. You can’t cash out in the first year for any reason.
Small early penalty. Cash out before 5 years and you give up the last 3 months of interest.
Interest is added every six months, not paid out. You get it when you cash the bond.

How they’re taxed

No state or local income tax. Federal tax is due when you cash the bond, so it can wait for years; our numbers count it every year, which slightly understates what I Bonds keep.

How to buy

Open an account at TreasuryDirect.gov with your Social Security number and a bank account.
Choose BuyDirect, then Series I savings bond.
Enter an amount from $25 to $10,000 and a purchase date. Interest counts from the first day of the month you buy.
Keep your login safe: TreasuryDirect is the only place these bonds live.

Questions

What do I Bonds pay right now?

I Bonds bought from November 1, 2026 through April 30, 2027 earn 5.51% for their first six months: a 1.40% fixed rate that lasts for the life of the bond, plus an inflation rate that resets every six months. The Treasury announces new rates on May 1 and November 1.

How much can I buy?

Up to $10,000 a year per person in electronic I Bonds at TreasuryDirect.gov, from $25. Spouses and each child can have their own limit.

When can I get my money out?

Not for the first 12 months. After that you can cash out any time; before 5 years you give up the last 3 months of interest.

How are I Bonds taxed?

Interest is free of state and local income tax. Federal tax is due when you cash the bond (or after 30 years), unless you choose to report it each year.

Are I Bonds better than Treasury bills?

It depends on inflation and how soon you need the money. Today a 1-year Treasury bill pays 4.33% with no lockup beyond its term and can be sold any day; I Bonds pay 5.51% for now, are locked for a year and limited to $10,000, but protect against inflation for up to 30 years.

Rates from the U.S. Treasury’s announcement, checked October 30, 2026. Treasury bill and CD rates from today’s data. Not investment or tax advice.