The U.S. Department of the Treasury has announced new rates for Series I bonds.
Newly purchased I bonds will pay 4.26% annual interest from May 1 through Oct. 31, which is up from the 4.03% yield offered through April 30.
The new rate includes a variable portion of 3.34%, based on inflation data, and a fixed portion of 0.90%. The combined rate is 4.26% after rounding, according to the Treasury. The fixed rate is the same from 0.90% announced in October.
Amid soaring inflation, the I bond rate hit a record high of 9.62% in May 2022, and investors poured into the government-backed, nearly risk-free asset.
Many shorter-term investors have since redeemed I bonds as rates and inflation have fallen. But the higher fixed rate has remained attractive to some longer-term investors, experts say.
