Treasury Sets Series I Bond Rate at 4.26% Through October 2026

The U.S. Treasury Department announced a Series I bond rate of 4.26 percent through October 2026. The rate applies to bonds purchased between May 1 and October 31, 2026.

Series I bonds are savings bonds tied to inflation. Their interest rate adjusts every six months based on the Consumer Price Index. The 4.26 percent rate reflects current inflation levels and is higher than the national average savings account rate of 0.38 percent.

Savers can purchase up to $10,000 in electronic I bonds per year through TreasuryDirect.gov. An additional $5,000 in paper I bonds can be purchased using a federal tax refund.

The announcement comes as the Federal Reserve has held interest rates steady in 2026 after cutting them three times in 2025. High-yield savings accounts currently offer rates up to 4.10 percent APY, according to data from Yahoo Finance. The I bond rate of 4.26 percent is slightly higher, though I bonds come with a one-year minimum holding period and a three-month interest penalty for redemptions within the first five years.

Financial advisors often recommend I bonds as a low-risk option for emergency funds or short-term savings goals. The bonds are backed by the U.S. government and carry no credit risk.

The previous I bond rate was set in November 2025. Rates are announced in May and November each year. Investors who purchased I bonds during the high-rate period of 2022 and 2023, when rates exceeded 9 percent, have seen their rates decline as inflation has cooled.