What is the current I bond rate?

The composite rate is 4.26% for I bonds issued May 1, 2026 to October 31, 2026. That combines a fixed rate of 0.90%, which stays with the bond for its whole 30-year life, and a semiannual inflation rate of 1.67%, which is reset every six months.

How often does the I bond rate change?

Treasury announces new rates twice a year, on May 1 and November 1. But your own bond does not change rate on those dates — it changes every six months counted from its own issue month. A bond issued in July re-rates every January 1 and July 1.

Can an I bond lose value?

No. If inflation turns negative the composite rate can fall, but Treasury floors it at zero, so the redemption value never goes down. That floor is the main structural difference between an I bond and a TIPS, which can lose principal in deflation.

How much can I buy in I bonds per year?

$10,000 in electronic I bonds per calendar year, per Social Security Number or EIN. Since January 1, 2025, I bonds are electronic-only — the old $5,000 paper allowance via a tax refund no longer exists, though plenty of guidance still says it does.

When can I cash an I bond?

After 12 months. If you redeem before five years you forfeit the last 3 months of interest, so a bond cashed at 18 months pays 15 months of interest. After five years there is no penalty.

Interest is subject to federal income tax but exempt from state and local income tax. You can defer the federal tax until you redeem the bond or it stops earning at 30 years. Interest may be fully or partly tax-free if used for qualifying higher-education expenses and you meet the income limits.

Stock Market Watch

I Bond Rates

Current rate for Series I savings bonds issued May 1, 2026 to October 31, 2026 · U.S. Treasury

Composite Rate

4.26%

annualised, first 6 months

Fixed Rate

0.90%

never changes for this bond

Semiannual Inflation

1.67%

resets every 6 months

Next Reset

Nov 1

May 1 and Nov 1 each year

A Series I savings bond pays two rates at once. One is fixed for the life of the bond and is set by Treasury on the day you buy it; the other tracks inflation and is reset every six months. Added together they give the composite rate, which is what the bond actually earns. The fixed component is the part worth paying attention to when deciding whether to buy — the inflation half will be the same whenever you buy, but the fixed rate you lock in stays with that bond for thirty years.

How Treasury Gets to 4.26%

Fixed rate	0.90%
Semiannual inflation rate	1.67%
Formula	fixed + (2 × semiannual) + (fixed × semiannual)
Substituted	0.0090 + (2 × 0.0167) + (0.0090 × 0.0167)
Composite rate	4.26%

The Third Term Everyone Drops

Most explanations shorten the formula to “fixed rate plus twice the semiannual inflation rate” and stop there. That gets you close, but it is not what Treasury publishes. The third term — fixed multiplied by semiannual — is the cross-product between the two components, and it is why this window’s rate is 4.26% rather than 4.24%. It is a small difference now because the fixed rate is small; in periods when the fixed rate was 3% or more it mattered considerably.

The inflation component is derived from CPI-U over the preceding six months, which is why the announcement dates are May 1 and November 1 — they follow the March and September CPI releases.

Your Bond Does Not Re-Rate in May

This trips up almost everyone. Treasury announces on May 1 and November 1, but an individual bond changes rate every six months from its own issue month. A bond bought in July moves to the new rate the following January 1, then July 1, and so on. So the rate on your statement will often not be the rate in the headline — it is the one announced six months before your bond’s anniversary.

One consequence: buying at the end of a month still earns a full month’s interest for that month, because interest accrues from the first of the issue month.

Rules That Apply to Every I Bond

Annual purchase limit	$10,000 per SSN or EIN per calendar year
Minimum purchase	$25, to the penny above that
Form	Electronic only since January 1, 2025
Earns interest for	30 years
Minimum hold	12 months, no exceptions
Early redemption	Before 5 years, forfeit the last 3 months of interest
Tax	Federal only — exempt from state and local income tax

How I Bonds Compare to Treasuries

An I bond is not a tradeable security. There is no secondary market, no price that moves, and no capital gain or loss — you get your principal plus accrued interest whenever you redeem, which makes the comparison with a 1-year Treasury or a 5-year Treasury less direct than it looks.

Where a Treasury note locks in a known nominal yield, an I bond locks in a known real return: the fixed rate is what you earn above inflation, whatever inflation turns out to be. That is the same promise TIPS make, with two differences — the I bond cannot lose principal in deflation, and it is capped at $10,000 a year.

FAQ

What is the current I bond rate?: The composite rate is 4.26% for I bonds issued May 1, 2026 to October 31, 2026. That combines a fixed rate of 0.90%, which stays with the bond for its whole 30-year life, and a semiannual inflation rate of 1.67%, which is reset every six months.
How often does the I bond rate change?: Treasury announces new rates twice a year, on May 1 and November 1. But your own bond does not change rate on those dates — it changes every six months counted from its own issue month. A bond issued in July re-rates every January 1 and July 1.
Can an I bond lose value?: No. If inflation turns negative the composite rate can fall, but Treasury floors it at zero, so the redemption value never goes down. That floor is the main structural difference between an I bond and a TIPS, which can lose principal in deflation.
How much can I buy in I bonds per year?: $10,000 in electronic I bonds per calendar year, per Social Security Number or EIN. Since January 1, 2025, I bonds are electronic-only — the old $5,000 paper allowance via a tax refund no longer exists, though plenty of guidance still says it does.
When can I cash an I bond?: After 12 months. If you redeem before five years you forfeit the last 3 months of interest, so a bond cashed at 18 months pays 15 months of interest. After five years there is no penalty.
Are I bonds taxable?: Interest is subject to federal income tax but exempt from state and local income tax. You can defer the federal tax until you redeem the bond or it stops earning at 30 years. Interest may be fully or partly tax-free if used for qualifying higher-education expenses and you meet the income limits.

Savings bonds explained — what they are, and Series I versus Series EE
Treasury yields — the daily par yield curve
Yield curve — shape, spreads and inversion

Rates as published by TreasuryDirect (U.S. Department of the Treasury) for bonds issued May 1, 2026 to October 31, 2026, recorded here on September 11, 2026. Treasury resets I bond rates every May 1 and November 1. This page is information, not investment advice; see our disclaimer.

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