The Treasury Department has set the new Series I Bond rate at 3.2% for bonds purchased May-October 2026, down from 5.27% at peak but still offering inflation protection with zero risk.
I Bond Details
- New rate: 3.2% (fixed 1.0% + inflation 2.2%)
- Purchase limit: $10,000/year per person
- Lock period: 1 year minimum, penalty if redeemed before 5 years
- Tax advantage: state tax exempt, federal tax deferrable
With the fixed rate component at 1.0%, current I Bonds lock in inflation protection permanently. Even when inflation is low, your return will always be 1.0% + whatever inflation is. Buy before the fixed rate potentially drops further.
