The I Bond Interest Rate Just Went Up. Here's What They're Paying Now

Series I Savings Bonds, better known as I Bonds, gained tremendous popularity in 2022 and 2023 as inflation soared to generationally high levels.

If you aren't familiar, I Bonds are designed to help Americans grow their savings and protect them from the damaging effects of inflation. Every six months, the Treasury announces the interest rate for newly sold I Bonds, and the newest interest rate was just unveiled.

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The I Bond interest rate just went up

I won't keep you in suspense. I Bonds purchased from November 2025 through April 2026 will have a 4.03% annual yield. This is slightly higher than the 3.98% yield that has been in place for the past six months.

There are two components to the interest rate:

• A fixed interest rate that stays the same for as long as you own the bond. Usually this is the lower of the two, unless there is little to no inflation.
• An inflation adjustment, which changes every six months. This is also known as the variable portion of the I Bond interest rate.

For new I Bonds, the fixed rate will be set at 0.90%, while the inflation portion will be 3.12%. Thanks to the mathematics of compound interest, the combined interest rate is 4.03%. It's worth noting that the fixed rate is actually down from the 1.10% rate that has been in place for the past six months.

To be clear, if you buy an I Bond at any point from November 2025 to April 2026, you'll get the 4.03% annualized yield for a full six months. After six months have passed, the 0.90% fixed rate will remain, and the inflation component will be set to whatever it is at the time.

Should you buy I Bonds?

Buying I Bonds can be a smart way to protect your money from inflation, especially if we end up getting an unexpected inflation spike in the coming years. But it's important to know that like any investment, they have downsides.

I Bonds are designed to slightly outpace inflation over time. For example, the inflation rate is approximately 3% as of the latest CPI data, and new I Bonds yield about a percentage point more. They are not likely to deliver returns as strong as stock investments over long periods.

Additionally, there's a limit of $10,000 in new I Bond purchases per year. You can't sell I Bonds for at least a year, and if you cash out before five years, you'll get hit with a penalty. Keep these things in mind before investing.

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