I-Bonds (Series I Savings Bonds)
Inflation-protected savings bonds backed by the U.S. government. One of the safest ways to protect your money from inflation.
Current Composite Rate
4.03%
November 1, 2025 - April 30, 2026
Fixed Rate
0.90%
Locked at purchase
Inflation Rate
3.12%
Adjusts every 6 months
How I-Bonds Work
The Composite Rate Formula
The rate you earn combines a fixed rate (set when you buy) and an inflation rate (adjusts every 6 months based on CPI-U):
Composite = Fixed + (2 × Inflation) + (Fixed × 2 × Inflation)
Why the Fixed Rate Matters
The fixed rate is locked for the life of your bond (30 years). When fixed rates are high (like the current 0.90%), it's a good time to buy because you'll always earn at least that rate on top of inflation adjustments.
Purchase Rules
Annual Limits
- •$10,000 per person per calendar year (electronic)
- •Additional $5,000 in paper bonds with tax refund
- •Trusts and businesses can also purchase separately
How to Buy
- 1.Create account at TreasuryDirect.gov
- 2.Link your bank account
- 3.Purchase any amount from $25 to $10,000
Redemption Rules
Holding Period
- Minimum: 12 months
- Early penalty: 3 months interest if redeemed before 5 years
- Maximum: 30 years (stop earning interest after)
Tax Treatment
- ✓State and local tax exempt
- ✓Federal tax deferred until redemption
- ✓Tax-free if used for qualified education