Finance

November 2026 Update. Savings I Bonds bought from November 1, 2026 to April 30, 2027 will have a fixed rate of 1.40% and an inflation rate of 4.08% (annualized), for a total composite rate of 5.51% for the first 6 months. Folks have noted this is the highest fixed rate in a long time, but I must point out that TIPS (Treasury Inflation-Protected Securities) are currently yielding a significantly higher real yield at a wide choice of maturities.

Every existing I Bond will earn this new inflation rate of 4.08% eventually for 6 months, starting whenever your bond hits its next six-month reset. You will need to add your own fixed rate that was set based on the initial purchase month. You can look up your own fixed rate here. Your bond rate = your specific fixed rate (based on purchase month) + variable rate (total bond rate has a minimum floor of 0%).

Savings I Bonds are a unique, low-risk investment backed by the US Treasury that pay out a variable interest rate linked to inflation. With a holding period from 12 months to 30 years, you could own them as an alternative to bank certificates of deposit (they are liquid after 12 months) or bonds in your portfolio.

Tips on purchase and redemption. You can’t redeem until after 12 months of ownership, and any redemptions within 5 years incur an interest penalty of the last 3 months of interest. A simple “trick” with I-Bonds is that if you buy at the end of the month, you’ll still get all the interest for the entire month – same as if you bought it in the beginning of the month. It’s best to give yourself a few business days of buffer time. If you miss the cutoff, your effective purchase date will be bumped into the next month. (You should always sell at the very beginning of the month.)

Unique features and benefits! There are definitely reasons to own Series I Savings Bonds, including inflation protection, tax deferral, exemption from state income taxes, and potential tax benefits if used toward qualified educational expenses.

Unique drawbacks! You can only buy new savings bonds through TreasuryDirect.gov, which is limited in its customer service resources and features. There is also no option for paper tax forms nor statements (or even online monthly statements), so your heirs may never know they exist! If they do find it, it may take them several months and a lot of effort to close out all the estate paperwork. If you forget your password, it may take weeks or longer to unlock your account.

If you become a victim to theft or fraudulent activity, they will not replace any lost or stolen savings bonds. They explicitly accept no liability:

§ 363.17 Who is liable if someone else accesses my TreasuryDirect ® account using my password?

You are solely responsible for the confidentiality and use of your account number, password, and any other form(s) of authentication we may require. We will treat any transactions conducted using your password as having been authorized by you. We are not liable for any loss, liability, cost, or expense that you may incur as a result of transactions made using your password.

The juice may not be worth the squeeze when you can own individual Treasury bonds or TIPS within any full-service brokerage account. It’s sad that they’ve basically let this investment decay away due to neglect.

I also used to believe that the government would not tamper or attempt to politically influence these BLS CPI statistics that are at the core of many important functions, including Social Security inflation adjustments, TIPS, and these Savings Bonds. Now I’m not so sure. I found this guest article from TIPSWatch to offer some perspective: A historical look at political influence over the BLS.

Personally, I sold all my savings bonds in 2024 and do not plan to buy any more. I’m older now and I feel the small potential benefit just doesn’t outweigh the small possibility that I could lose the entire amount due to estate-handling mistakes or online hack. I’d rather own TIPS and US Treasuries directly in a full-service brokerage account. As a long-term holder, I have been able to lock in between 2.5% to 3.5% (!) real yield with longer term TIPS bonds.

Annual purchase limits. The annual purchase limit is now $10,000 in online I-bonds per Social Security Number. For a couple, that’s $20,000 per year. You can only buy online at TreasuryDirect.gov, after making sure you’re okay with their poor service. (No more tax refund savings bonds.) Technically, the purchase limits are per Social Security Number or Employer Identification Number. For those looking for another way to expand their purchasing power, that means you can also buy for a child, grandchild, LLC, or a trust.

Bottom line. Savings I bonds are a unique, low-risk investment that are linked to inflation and only available to individual investors. You can now only purchase them online at TreasuryDirect.gov. They have both unique benefits and drawbacks. For more background, see the rest of my posts on savings bonds.

[Image: US Savings Bond advertisement – source]

Shopping cashback portal Rakuten is offering a new account bonus the Synchrony Bank High Yield Savings Account, which has no minimum balance and currently pays a relatively competitive (but not top) rate of 3.75% APY.

The bonus may fluctuate as with all their payout rates, but right now it is a $100 bonus with relatively easy requirements. You just need to deposit $1,000+ of new money within 55 calendar days of opening the account. No minimum hold period is listed. Notably, it also does not have to be a payroll direct deposit. The Rakuten page says it takes “a few months” for the bonus to post. You could technically take your money out immediately, or even leave your money in there until it posts and the effective APY would still be in the neighborhood of 40% APY. Synchrony Bank also offers competitive CDs rates from time to time, so you might actually use the account later.

New to Rakuten? If you don’t have an account yet, you can open a new Rakuten account through my referral link for an extra $50 bonus after you spend your first $50 through the portal. You could make a purchase from eBay or select categories of merchants like Target or Sam’s Club.

Fine print:

Cash Back is only available for new Synchrony Bank accountholders who do not have any active Synchrony Bank deposit accounts and all funds deposited must come from an external source and not from any funds currently on deposit at Synchrony Bank. Rakuten member must click and apply directly through the Rakuten link, open a new Synchrony Bank High Yield Savings account and fund the account with a minimum of $1,000.00 within 55 calendar days of opening the account to qualify. Cash Back reward is limited to one per Rakuten member. Synchrony Bank account will be reviewed to determine eligibility for Cash Back. Account application is subject to approval by Synchrony Bank. Synchrony Bank reserves the right to discontinue or modify the terms of the Synchrony Bank High Yield Savings account promo at any time without prior notice.