U.S. Treasury (public domain; archive paper-bond specimen).
New Series I savings bonds issued from November 1, 2026, through April 30, 2027, carry a 5.51% annualized composite interest rate for their first six months, according to TreasuryDirect. The new rate includes a 1.40% fixed component, up from 0.90% for bonds issued in the previous six-month window.
The distinction matters: 5.51% is not a guaranteed return for the life of the bond. The composite rate combines a fixed component that stays with the bond and an inflation component that resets every six months, as explained in TreasuryDirect’s rate notice.
For the new issue window, the semiannual inflation rate is 2.04%. Treasury’s formula combines twice that figure with the annual fixed rate and an interaction between the two components, producing the rounded 5.51% annualized rate.
A purchaser who buys in November receives that initial composite rate for six months. Later rates depend on future inflation adjustments, while the bond’s 1.40% fixed rate remains unchanged. Bonds bought in other months follow their own six-month reset schedule from their issue month.
Existing I bonds do not automatically acquire the new 1.40% fixed rate. Their fixed component remains the rate set when they were issued, while the inflation component changes on the applicable six-month schedule.
TreasuryDirect says I bonds earn interest until they are redeemed or reach 30 years old. Interest is added to principal every six months. If a bond is redeemed before it is five years old, the holder loses the final three months of interest. The composite rate cannot fall below zero, although deflation can reduce it below the fixed component.
JBizNews Desk | New York
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