US Treasury I Bonds Offer 5.51% Composite Rate Starting Nov. 1, Highest Fixed Rate in 20 Years

I bonds sold from Nov. 1 through April 30 will carry a 5.51% composite rate, the U.S. Treasury said, as the fixed rate rose to 1.4% from 0.9% — the highest since November 2006. The annualized variable rate climbs to 4.08%, up from 3.34% in the prior six months, reflecting 2.04% inflation from April to September. The new rate tops current T-bill yields of roughly 3.976% to 4.945%, six-month CDs at 4.5%, and high-yield savings accounts at up to 4.4%, though it remains below the 9.62% offered in 2022 during a 40-year inflation high. Analysts suggest buying late in the month, since bonds are dated the first of the month regardless of purchase date; David Enna of Tipswatch recommends targeting around Nov. 25 to allow processing time. I bonds are sold electronically through TreasuryDirect, capped at $10,000 per person annually, and carry federal tax only.