Banking

I-Bond Rate Today (2026): Is It Worth Buying?

Right now, the best high-yield savings accounts (4.50%) out-earn the I-Bond composite rate (4.03%), with no lockup and full liquidity. I-Bonds still make sense as a tax-deferred, inflation-linked slice of a longer-term cash allocation.

I-Bond rate

4.03%

Best HYSA rate

4.50%

National HYSA average

0.42%

I-Bond rate history vs. national HYSA average

I-Bond vs. HYSA calculator

Assumes the same annual purchase for each year, current rates held constant, and interest compounding annually. Real I-Bond rates reset every 6 months.

Contributed

$15,000

I-Bond value

$16,242

Best HYSA value

$16,391

When I-Bonds beat a HYSA

  • You can commit the money for at least 12 months (I-Bonds can't be cashed before then).
  • You want state and local tax-free interest, deferred until redemption.
  • You're worried about inflation eroding purchasing power over a multi-year horizon.
  • You've already filled a liquid emergency fund and this is a longer-term cash sleeve.

How to buy I-Bonds

  1. Create a free account at treasurydirect.gov.
  2. Link a checking or savings account for the purchase and future redemptions.
  3. Buy electronic I-Bonds up to $10,000 per person per calendar year — no fees, no minimum beyond $25.
  4. Hold at least 12 months; wait 5 years to avoid the 3-month interest penalty on early redemption.

Frequently asked questions

How often does the I-Bond rate change?

The Treasury sets a new composite rate every May 1 and November 1, combining a fixed rate (set at purchase, held for life) with a variable rate tied to inflation (CPI-U).

Is an I-Bond better than a high-yield savings account?

It depends on the current composite rate versus the best HYSA APY, and on your time horizon. I-Bonds require a 12-month minimum hold and forfeit 3 months of interest if cashed before 5 years, so they suit money you won't need for at least a year.

Is there a limit on how much I can buy in I-Bonds?

Yes — $10,000 per person per calendar year electronically via TreasuryDirect, plus up to $5,000 more via a paper bond bought with a federal tax refund.

Are I-Bonds taxed?

Interest is subject to federal income tax (deferred until you cash the bond or it matures) but exempt from state and local income tax — unlike most savings account interest, which is taxed annually at the federal, state and local level.

How do I buy an I-Bond?

Open a free account at treasurydirect.gov, link a bank account, and purchase directly from the Treasury. There's no brokerage or bank intermediary and no fee.

Source: U.S. Treasury (TreasuryDirect); FDIC national rates; Bank published rate sheets. Latest observation 2025-11-01.