# I bonds hit 5.51%, but restrictions limit their appeal

> Series I bonds now offer their highest yield since November 2022, but purchase caps and lock-up periods mean they work best as a secondary emergency fund.
- Title: I bonds hit 5.51%, but restrictions limit their appeal · CNBC
- Summary: Series I bonds now offer their highest yield since November 2022, but purchase caps and lock-up periods mean they work best as a secondary emergency fund. I…
- Keywords: i bonds, treasury securities, inflation protection, savings accounts, personal finance, interest rates, business, finance, bonds, hit, restrictions, limit
- Source: CNBC — https://cnbc.com/2026/11/02/i-bonds-rate.html
- Author: Kate Dore, CFP®, EA
- Published: 2026-11-02T20:57:50+00:00
- Read time: 1 min
- Topics: i bonds, treasury securities, inflation protection, savings accounts, personal finance, interest rates, business, finance
## I bonds now pay 5.51% through April
Newly purchased Series I bonds pay 5.51% annual interest through April 30, up from 4.26% offered through October. This is the highest composite rate since November 2022.
## Two parts make up the new rate
The variable part of I bond interest rose to 4.08%, while the fixed part increased to 1.40%, the highest since 2006. The variable part resets every six months based on the consumer price index.
## Ken Tumin calls the rate very attractive
Ken Tumin, founder of DepositQuest.com, says the new I bond rate is very attractive and looks very competitive compared to savings accounts or certificates of deposit for shorter-term cash.

> very attractive
## Purchase limits and lock-up periods apply
Investors can buy ten thousand dollars of electronic I bonds per person per calendar year via TreasuryDirect.
## I bonds work best as secondary savings
David Enna, founder of Tipswatch.com, recommends I bonds as a secondary emergency fund to boost reserves beyond the three to six months of living expenses advisors typically recommend keeping in cash.

> a secondary emergency fund
## Eileen Olson prefers TIPS for most clients
Certified financial planner Eileen Olson says I bonds are more hassle than they are worth.On a two million dollar portfolio, the ten thousand dollar annual limit is only 0.

> more hassle than they're worth
## TIPS offer higher yields without limits
TIPS have five, ten and thirty-year terms with yields ranging from about 2.3% to above 3% for the thirty-year term as of November 2.
## Other alternatives offer simpler options
Treasury bills with terms from four weeks to fifty-two weeks were yielding well over 4% as of November 2.
## Key takeaway

I bonds now pay 5.51% annually through April 2027, up from 4.26%, but strict limits and early redemption penalties make them unsuitable for most investors seeking inflation protection.