U.S. Treasury Raises Series I Savings Bond Composite Yield to 5.51%
The U.S. Treasury has increased the annual composite yield for Series I savings bonds to 5.51% for bonds purchased between November 1, 2026, and April 30, 2027. This marks the highest return for these government-backed securities since late 2022. Notably, the bond's permanent fixed rate has climbed to 1.40%, its highest level since 2006, providing long-term protection against inflation. The new composite rate outperforms current top high-yield savings accounts, which sit at approximately 4.40% APY, and significantly exceeds the FDIC national average of 0.38%. While I bonds offer tax advantages—including state and local tax exemptions and deferred federal taxes—they come with liquidity constraints, including a one-year minimum holding period and a three-month interest penalty if redeemed before five years.
Topics: Inflation Interest Rates Series I Savings Bonds U.S. Treasury