Series I Savings Bonds Yield Increase to 5.51%
The interest rate for newly purchased Series I savings bonds has risen to a composite annual rate of 5.51%, effective through April 2027. This increase is driven by a rise in the variable component to 4.08% and a fixed rate of 1.40%, marking the highest fixed rate since 2006. The yield represents a significant jump from the 4.26% offered through October. While the higher yields make these government-backed assets competitive against savings accounts and CDs, experts note several limitations. Investors face a 12-month lock-up period and a three-month interest penalty if redeemed before five years. Additionally, the $10,000 annual purchase limit per person may make I bonds less impactful for high-net-worth individuals compared to alternatives like Treasury Inflation-Protected Securities (TIPS).
Topics: Consumer Price Index Inflation Interest rates Series I bonds
Part of the story U.S. Treasury Increases Series I Savings Bond Rate to 5.51% (3 articles)