You’ve probably seen the headlines about "risk-free" money or heard your grandparents talk about those paper certificates tucked away in a safe deposit box. But let's be real—the math behind these things can feel like a headache. If you're wondering how much do us savings bonds earn right now, the answer isn't a single number. It’s a moving target.
For anyone buying today, specifically in early 2026, you're looking at two main flavors: Series I and Series EE.
Currently, Series I bonds are sitting at a 4.03% composite rate. That’s for bonds issued from November 2025 through April 2026. Meanwhile, Series EE bonds are locked in at a flat 2.50%.
That sounds simple enough. But honestly, the "real" return depends entirely on how long you're willing to park your cash and what inflation does while you're waiting.
The I Bond Breakdown: Inflation is the Engine
Most people flock to I bonds because they’re designed to protect your purchasing power. If the price of eggs and gas goes up, your bond’s yield is supposed to follow.
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The 4.03% rate you see today is actually a hybrid. It’s built from a 0.90% fixed rate (which stays with your bond for the full 30 years) and a 3.12% semi-annual inflation rate.
Every six months, the Treasury looks at the Consumer Price Index (CPI-U) and adjusts the inflation part. Your fixed rate is your "profit" above inflation. Back in 2022, when inflation was screaming, these bonds were paying over 9%. Now that things have cooled off, 4.03% is the new reality.
It’s a bit of a gamble on the future. If inflation spikes again in 2027 or 2028, that 4.03% will climb. If we hit a period of deflation, the rate could drop toward that 0.90% floor, but it will never go below zero. Your principal is always safe.
The Weird Logic of Series EE Bonds
Series EE bonds are the "slow and steady" sibling. At 2.50%, they look like a bad deal compared to a high-yield savings account or an I bond.
But there’s a massive "catch" that works in your favor.
The US Treasury guarantees that a Series EE bond will double in value if you hold it for exactly 20 years.
Think about that math. To double your money in 20 years, you effectively need an annual return of about 3.5%. So, even though the "printed" rate is 2.50%, if you hit that 20-year milestone, the government does a one-time adjustment to make sure your $10,000 bond is suddenly worth $20,000.
If you cash out at year 19? You only get the 2.50%. It’s a game of chicken with the calendar.
Real Talk on the "Gotchas"
You can’t just treat a savings bond like a checking account. There are rules that can sting if you aren't careful.
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- The One-Year Lock: You cannot touch your money for the first 12 months. Period.
- The Five-Year Penalty: If you cash out before the five-year mark, you lose the last three months of interest.
- The $10,000 Cap: You can only buy $10,000 of each type per calendar year per Social Security number.
Basically, these are "set it and forget it" tools. If you think you might need the money for an emergency in six months, stay away.
Taxes and the Education Loophole
One of the biggest perks of how much do us savings bonds earn isn't actually the rate—it's what you don't pay.
Savings bond interest is exempt from state and local taxes. If you live in a high-tax state like California or New York, that's a massive win. You still owe federal taxes, but you can usually defer them until you cash the bond in.
There is also a "secret" way to pay zero federal tax. If you use the bond money for qualified higher education expenses (like tuition for you or your kids) and you stay within certain income limits, the interest can be entirely tax-free. For 2025 and 2026, those phase-out limits for joint filers usually start around $150,000, so it’s worth checking the exact IRS thresholds before you bank on this.
How to Actually Buy Them
You won't find these on Robinhood or at your local bank branch anymore. Everything happens through TreasuryDirect.gov.
The website looks like it was designed in 1998. It's clunky. It uses a virtual keyboard for passwords that makes you want to pull your hair out. But it is the only way to get electronic bonds.
If you really want paper bonds, the only way left is to use your federal tax refund. You can tell the IRS to send you up to $5,000 of your refund in paper I bonds using Form 8888.
Actionable Next Steps
If you're looking to put money to work today, here is the move:
- Check your timeline: If you need the money in less than five years, look at a 12-month CD or a high-yield savings account instead to avoid the 3-month interest penalty.
- Diversify the "buy": Many people split their $10,000 limit between I bonds (for inflation protection) and EE bonds (for the 20-year doubling guarantee).
- Watch the calendar: If you buy a bond on the 30th of the month, you still get credit for the whole month. It's a tiny "hack" to earn an extra few weeks of interest for free.
- Log in once a year: TreasuryDirect will not mail you statements. If you forget your password or the email associated with the account, getting back in is a notorious bureaucratic nightmare involving mailed-in forms and "signature guarantees" from a bank. Don't let your account go dormant.
Ultimately, savings bonds aren't going to make you rich overnight. They are a defensive play. They are for the "sleep well at night" portion of your portfolio where "not losing money" is more important than "beating the market."