"Treasury Department Sets 5.27% Rate for Series I Bonds in Next Six Months"

The U.S. Treasury Department has announced that Series I bonds will offer a 5.27% annual interest rate from November 1 to April 2024, up from the previous rate of 4.3%. These bonds, tied to inflation, provide investors with the opportunity to earn the fourth-highest I bond rate since 1998. The fixed portion of the rate remains the same for the life of the bond, while the variable rate adjusts every six months based on inflation. It is important to consider the limitations of I bonds, such as restricted access to funds for at least one year and potential penalties for early withdrawal.