Treasury Sets Series I Bond Rate at 5.51 Percent Through April 2027 as Inflation Stays Elevated

The US Treasury Department has set the interest rate for Series I savings bonds at 5.51 percent through April 2027, offering savers a government-backed option that keeps pace with inflation.

The rate, reported by CNBC, reflects the continued elevation of consumer prices. The I bond rate is tied to the Consumer Price Index and adjusts every six months to reflect changes in inflation. The current rate is significantly higher than the yields available on most savings accounts and many certificates of deposit.

Series I bonds are sold directly by the Treasury through TreasuryDirect.gov. Individual investors can purchase up to $10,000 in electronic I bonds per calendar year, with an additional $5,000 available through federal tax refunds.

The bonds must be held for at least one year before they can be redeemed. Investors who redeem them before five years forfeit the last three months of interest. After five years, there is no penalty for early redemption.

Financial advisors say I bonds are particularly well-suited for emergency funds or money that savers do not need immediate access to. The combination of a competitive rate and government backing makes them attractive in an environment where inflation has remained stubbornly above the Federal Reserve's 2 percent target.

The Federal Reserve held its benchmark interest rate steady at 3.75 to 4 percent at its October 28 meeting, with market expectations leaning toward a potential rate hike in December. Core inflation, as measured by the Personal Consumption Expenditures index, rose 0.5 percent in September, pushing the annual rate to 3.1 percent.

Savers interested in I bonds can purchase them at TreasuryDirect.gov. The current rate of 5.51 percent applies to bonds purchased through April 2027.