The I Bond Interest Rate Just Went Up. Here's What They're Paying Now

Core Insights - I Bonds have gained significant popularity in 2022 and 2023 due to high inflation rates, designed to help Americans save and protect against inflation [1][3] - The latest interest rate for I Bonds, effective from November 2025 to April 2026, is set at 4.03%, slightly higher than the previous 3.98% [3][4] - The interest rate consists of a fixed rate of 0.90% and an inflation component of 3.12%, with the fixed rate decreasing from 1.10% [3][6] Interest Rate Details - I Bonds purchased during the specified period will yield 4.03% annually for the first six months, after which the fixed rate remains while the inflation component adjusts [4][6] - The fixed interest rate remains constant for the duration of ownership, while the inflation adjustment changes every six months [7] Investment Considerations - I Bonds are designed to slightly outpace inflation, currently yielding about 1% more than the approximate 3% inflation rate [8] - There are limitations on I Bond purchases, capped at $10,000 per year, and penalties apply for cashing out before five years [9]