Treasury I Bonds Explained: Rates, Limits and How to Buy

Treasury I bonds explained: the November 2026 rate is 5.51 percent, the annual limit is $10,000, and purchases run only through TreasuryDirect.

By Galactic News Editorial · Published 2026-11-08T13:29:31+00:00 · Updated 2026-11-08T13:29:31+00:00

Treasury I Bonds Explained: Rates, Limits and How to Buy

Series I savings bonds are US Treasury bonds that protect saved money from inflation. The rate combines a fixed rate with an inflation rate. For bonds issued from November 1, 2026 through April 30, 2027, the composite rate is 5.51 percent. Purchases run through TreasuryDirect. The annual limit is $10,000 in electronic bonds per person. This article explains how the rate works, the limits, and how to buy. It is educational. It is not personal financial advice.

How the I bond rate works

The rate has two parts. The fixed rate is set when you buy. It stays with that bond for its whole life, up to 30 years. The inflation rate resets every six months. It follows the Consumer Price Index for All Urban Consumers. The two parts combine into a composite rate. The formula is: composite rate equals the fixed rate plus twice the semiannual inflation rate, plus the fixed rate times the semiannual inflation rate. For bonds issued from November 1, 2026 through April 30, 2027, the fixed rate is 1.40 percent. The semiannual inflation rate is 2.04 percent. Together they give a composite rate of 5.51 percent. Only the 1.40 percent fixed part is locked in. The composite rate changes when the inflation part resets. New rates are announced every May 1 and November 1. Interest compounds semiannually. The composite rate can never fall below zero.

Rates, limits, and rules at a glance

The $10,000 limit applies per Social Security number. A married couple can each buy $10,000 in their own accounts. The limit resets every January 1. There is no limit on the total amount one person can own, only on yearly purchases. Each child has the same yearly limit through a minor linked account.

How to buy

1. Step 1: Open a TreasuryDirect account. Go to TreasuryDirect.gov and create an individual account. You need your Social Security number and a US bank account.
2. Step 2: Choose Series I. Pick Series I savings bonds from the purchase menu. You can buy any amount from $25 up to the $10,000 annual limit, to the penny.
3. Step 3: Fund the purchase. The money comes from your linked bank account. The product sells at face value. There is no commission and no fee.
4. Step 4: Hold for at least a year. You cannot redeem during the first 12 months. Plan around that lock-up before you buy.
5. Step 5: Redeem when you need the money. After 12 months you can redeem through TreasuryDirect. If you redeem before five years, you lose the last three months of interest.

Since January 1, 2025, these bonds are only available electronically. You cannot buy them at a bank or through a broker. Paper bonds bought with a tax refund are no longer sold.

Taxes

Interest is subject to federal income tax. You can defer the tax until you redeem or the bond reaches maturity. The interest is exempt from state and local income taxes. That exemption helps savers in states with income tax. Some education uses may qualify for a federal tax exclusion. The rules for that exclusion are narrow, with income limits and an age requirement for the owner. Check the IRS rules or a tax professional before relying on it.

Who this product suits, and who it does not

The product suits savers who want inflation protection with no risk to principal. The Treasury backs it. The value never falls. It suits money you can leave untouched for at least a year. The 5.51 percent composite rate is attractive against many savings accounts. But the rate is not locked. Only the 1.40 percent fixed rate is permanent. The composite rate could fall at the next reset in May 2027. The product does not suit money you may need within a year. The 12-month lock-up is absolute. It also does not suit savers who want a high return. The fixed rate of 1.40 percent is modest. The $10,000 annual cap limits how much you can put in.

Bottom line

New bonds pay 5.51 percent for the issue window from November 2026 through April 2027. The fixed rate of 1.40 percent stays for the life of the bond. The inflation half resets every six months. You can buy up to $10,000 a year through TreasuryDirect, with a $25 minimum. You cannot touch the money for a year. Cashing in before five years costs three months of interest. Check the current rate on TreasuryDirect before you buy. Rates change every May 1 and November 1.