Treasury Sets Series I Bond Rate at 5.51% Through April 2027
The U.S. Treasury has announced a new Series I bond rate of 5.51%, effective for the next six months through April 2027.
The U.S. Department of the Treasury has set the new composite rate for Series I savings bonds at 5.51%, a figure that will remain in effect for the next six months through April 2027, the agency announced.
Series I bonds are inflation-linked savings instruments issued directly by the federal government, designed to protect purchasing power by combining a fixed rate with a variable inflation adjustment tied to the Consumer Price Index. The composite rate reflects both components, making the bonds an attractive option for risk-averse savers in periods of elevated or uncertain inflation.
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The announced rate applies to I bonds purchased during the current period and to existing holders whose bonds enter a new adjustment cycle. Investors can purchase up to $10,000 in electronic I bonds annually through TreasuryDirect, with an additional $5,000 available in paper form via federal tax refunds.
The 5.51% rate positions I bonds competitively against many traditional savings vehicles, though investors should weigh the one-year minimum holding requirement and the penalty of three months' interest for redemptions made before five years. Financial analysts have noted that I bond rates can shift significantly with each semi-annual reset, depending on prevailing inflation data at the time of recalculation.
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