Treasury is lifting I bond rate to 5.51% with highest fixed rate in 20 years
The Treasury's new inflation-linked savings bond rate combines a higher fixed component with a resettable inflation component.
TL;DR
- The U.S. Treasury set a 5.51% initial annualized composite rate for Series I bonds issued from 2026-11-01 through 2027-04-30.
- The fixed component rose to 1.40%, while the inflation component reflects a 2.04% semiannual inflation measure.
- The composite rate applies for the first 6 months of a bond's life and may change afterward.
The U.S. Treasury set the initial annualized composite rate on Series I savings bonds issued from 2026-11-01 through 2027-04-30 at 5.51%. The preceding new-issue composite rate was 4.26%. [1] [2]
Quartz reported that the fixed portion rose to 1.40% from 0.90%, its highest level since 2006. That fixed rate remains in place for the life of each bond issued in the period. [1]
Seeking Alpha reported that the composite incorporates a 2.04% semiannual inflation measure. The initial composite applies for 6 months, after which the inflation component can change. [1] [2]
Existing bonds keep the fixed rates set when they were issued and move to a new inflation component on their own schedules. A later composite rate is not known in advance. [1] [2]
Why it matters
The reset connects a government savings rate to recent inflation while distinguishing the fixed component from an initial composite that changes over time.
Editor's note
The 5.51% figure is annualized and applies initially for 6 months; it is not a fixed return for the full bond term.