Series I Bonds Offer 4.26% as Inflation Accelerates to Three-Year High

Series I savings bonds are drawing renewed attention after U.S. consumer prices rose 3.8% from a year earlier, the fastest annual increase in three years, and 0.6% month over month, according to the Bureau of Labor Statistics. I bonds issued from May 1, 2026, through October 31, 2026, carry a 4.26% composite rate, including a 0.90% fixed rate and an inflation-linked component that resets every six months. The bonds earn monthly interest, compounded semiannually, and are exempt from state and local income taxes. The current yield is above national averages for traditional savings accounts at 0.38%, money market accounts at 0.57% and 12-month CDs at 1.53%. Investors may buy as little as $25 and up to $10,000 annually through TreasuryDirect. Liquidity remains limited. I bonds cannot be redeemed for 12 months, and redemptions within five years forfeit three months of interest. Returns can also fall if inflation declines.