Treasury Lifts Series I Savings Bond Rate to 5.51% on Elevated Inflation

Original summary · What happened

The United States Department of the Treasury unveiled an increase in the composite interest rate for newly issued Series I savings bonds to 5.51% annualized for the semiannual period running from November 1 through April 30. The revised yield marks an increase from the 4.26% rate offered on bond purchases completed through the end of October, reflecting renewed cost pressures across consumer price indicators.

The updated composite structure consists of a 4.08% variable yield driven by semiannual inflation data alongside a 1.40% fixed rate, which advanced from 0.90% in April to reach its highest baseline level since 2006. The adjustment follows official data from the Bureau of Labor Statistics showing the consumer price index climbed at an annual pace of 3.7% in September, accelerating from August's 3.4% reading.