Treasury Department announces new Series I bond rate of 5.51% for the next six months

The U.S. Department of the Treasury has announced new rates for Series I bonds. Newly purchased I bonds will pay 5.51% annual interest from Nov. 1 through April 30, which is up from the 4.26% yield offered on purchases made through Oct. 31. The new rate includes a variable portion based on inflation data , and a fixed portion of 1.40%. The fixed rate is up from 0.90% announced in April, and the highest since 2006. Combined, the composite I bond rate is 5.51% after rounding, according to the Treasury. Amid the post-pandemic inflation peak , the I bond rate hit a record high of 9.62% in May 2022, and investors poured millions into the government-backed, nearly risk-free asset.