I Bond Rate Rises to 5.51% With a 1.40% Fixed Rate (Nov. 2026–Apr. 2027): How I Bond Interest Is Taxed and When It Can Be Tax-Free for College
TreasuryDirect says I bonds bought from November 1, 2026 through April 30, 2027 earn a 5.51% composite rate, including a 1.40% fixed rate that is the highest since November 2006, while new EE bonds earn 2.90%. Learn how I bond interest is taxed (federal yes, state no), when to report it, how Form 8815 can exclude it for college costs, and how to plan around the $10,000 annual limit before December 31, 2026.
Read article