I bonds purchased through April 30 pay 5.51% in annual interest, up from 4.26% for those bought through October. The rate combines a variable component of 4.08%, adjusted every six months based on the consumer price index, with a fixed component of 1.40% that remains unchanged throughout the holding period. Each person can buy up to $10,000 in electronic I bonds per calendar year, but the funds are locked for one year and redeeming them before five years results in the loss of the final three months of interest. Investors seeking to preserve their purchasing power may also consider inflation-protected Treasury securities, Treasury bills, high-yield savings accounts, certificates of deposit or money market funds.
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