New Savings Bonds Offer Their Best Long Term Rate in 20 Years

The U.S. Treasury just set new rates on its inflation protected savings bonds, and the finance magazine Money reports the deal is the strongest it has been in two decades. New Series I savings bonds bought from November 2026 through April 2027 will earn a yearly interest rate of 5.51 percent for their first six months.

The number that matters most to long term savers is the fixed rate. According to Money, the new I bonds carry a fixed rate of 1.40 percent, and that is the highest fixed rate the Treasury has offered in 20 years, going back to 2006.

Here is why the fixed rate is such a big deal. An I bond earns interest in two parts. One part is the fixed rate, which stays the same for as long as you hold the bond, up to 30 years. The other part changes every six months to keep up with inflation. When prices climb, that second part climbs too, which helps protect your buying power. Today the two parts add up to that 5.51 percent starting rate.

For readers 50 and older who want a lower risk place for some cash, a few rules are worth knowing. You buy I bonds straight from the Treasury on its website. You can put in as little as 25 dollars and as much as 10,000 dollars per person each year. You have to hold the bond for at least one year. If you cash it in before five years, you give up the last three months of interest.

Because the fixed rate locks in for the life of the bond, anyone who buys now would keep that 1.40 percent cushion even after the inflation part shifts. One timing note from Money is that the yearly limit resets with the calendar, so people who already bought their full amount for 2026 would need to wait until January to buy more. Still, I bonds are just one tool, and whether they fit depends on your own savings, your goals, and when you may need the money.