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I bonds and TreasuryDirect, explained

How they work, the rules and the limits

Updated November 5, 2026 · Facts checked against the sources listed below

I bonds and TreasuryDirect, explained. How they work, the rules and the limits
What an I bond is. A US savings bond: Sold by the US Treasury. Built to keep up with inflation: The rate has two parts. Bought online only: In a TreasuryDirect account

THE BASICS

1. What an I bond is

  • A US savings bondSold by the US Treasury
  • Built to keep up with inflationThe rate has two parts
  • Bought online onlyIn a TreasuryDirect account

Source: TreasuryDirect.

How the rate works. A fixed rate plus an inflation rate: Combined into one composite rate. The inflation part resets every 6 months: So your rate changes over time. May 1 to Oct 31, 2026: 4.26%: Including a 0.90% fixed rate

THE RATE

2. How the rate works

  • A fixed rate plus an inflation rateCombined into one composite rate
  • The inflation part resets every 6 monthsSo your rate changes over time
  • May 1 to Oct 31, 2026: 4.26%Including a 0.90% fixed rate

Source: TreasuryDirect. Rates change; check the current rate before you buy.

Know these before you buy. Locked for 12 months: You can't cash it in the first year. Cash in before 5 years?: You lose the last 3 months of interest. After 5 years: No interest penalty

THE RULES

3. Know these before you buy

  • Locked for 12 monthsYou can't cash it in the first year
  • Cash in before 5 years?You lose the last 3 months of interest
  • After 5 yearsNo interest penalty

Source: TreasuryDirect.

How much you can buy. Up to $10,000 a year: In electronic I bonds, per person. Electronic only: Paper I bonds ended January 1, 2025

THE LIMITS

4. How much you can buy

  • Up to $10,000 a yearIn electronic I bonds, per person
  • Electronic onlyPaper I bonds ended January 1, 2025

Source: TreasuryDirect.

Bring these to a fiduciary. Do I have an emergency fund first?. Can I leave this money alone for at least a year?. How does this fit with my retirement savings?

QUESTIONS TO ASK

5. Bring these to a fiduciary

  • Do I have an emergency fund first?
  • Can I leave this money alone for at least a year?
  • How does this fit with my retirement savings?

Educational only, not financial advice. Talk to a fee-only fiduciary or CPA about your situation.

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