I Bonds Now Pay 4.26% Through October 2026: 5 Rules Savers Should Know Before Buying

Series I Savings Bonds now pay 4.26% through October 2026 and include a 0.90% fixed rate that stays with the bond for its entire life. Savers should remember the one-year holding requirement, three-month interest penalty before five years, and annual purchase limits before buying – Shutterstock

A fresh I Bond rate announcement always grabs attention, especially when savings accounts, CDs, and other cash options compete for the same dollars. The latest update gives Series I Savings Bonds a composite rate of 4.26% for bonds purchased from May 2026 through October 2026. That rate includes a fixed rate of 0.90%, which remains attached to the bond for its entire life.

For savers who want safety, inflation protection, and a government-backed investment, I Bonds continue to fill a unique role. However, many people rush in after seeing the headline rate and miss some important details. Before moving money into an I Bond, these five rules deserve a close look.