I bonds vs TIPS in November 2026: I bonds bought between November 1, 2026 and April 30, 2027 earn a composite rate of 5.51%, made of a 1.40% fixed rate plus inflation, according to TreasuryDirect. Five-year TIPS offered a real yield of 2.31% above inflation on November 2, according to the Treasury's daily real yield curve. So TIPS pay the higher rate above inflation, while I bonds offer no price risk, tax deferral and a $10,000 yearly cap. For most savers the answer is both: I bonds up to the limit for money you will not touch for at least a year, TIPS for larger sums or longer horizons. Both are U.S. Treasury obligations, and both are free of state and local income tax.

The rates as of November 2026

I bonds, from TreasuryDirect, for bonds issued November 1, 2026 through April 30, 2027:

• Composite rate: 5.51%.
• Fixed rate: 1.40%, locked for the life of the bond.
• Semiannual inflation rate: 2.04%, set on November 1 and reset every six months.

The previous period, May through October 2026, paid a 5.00% composite with a 0.90% fixed rate. The fixed part rose by half a point, which matters more than the headline because it is the part you keep for up to 30 years.

TIPS real yields from the Treasury's daily real yield curve on November 2, 2026:

• 5-year: 2.31%
• 7-year: 2.45%
• 10-year: 2.62%
• 20-year: 2.91%
• 30-year: 3.06%

For context, consumer prices rose 3.7% in the 12 months to September, according to the Bureau of Labor Statistics.

How each one protects you from inflation

Both track the same Consumer Price Index, but they deliver the protection differently.

An I bond pays a fixed rate plus an inflation rate that resets every six months. The interest compounds into the bond's value, and you collect it all when you cash the bond. You can redeem after 12 months; cash it before five years and you give up the last three months of interest. The bond earns interest for 30 years unless you cash it sooner.

A TIPS is a marketable Treasury security. Its principal rises with the CPI, and it pays a fixed rate of interest every six months on that adjusted principal. At maturity you receive the inflation-adjusted principal or the original principal, whichever is greater, so deflation cannot cut what you get back below what you paid. TIPS come in 5-, 10- and 30-year terms, with a $100 minimum.

The real-yield gap, with the math

The fair comparison is the part above inflation, because both add inflation on top. Today, that is 1.40% for an I bond against 2.31% for a five-year TIPS, a gap of 0.91 percentage points a year.

On a hypothetical $10,000 held for five years with inflation ignored, the gap in real terms works out roughly like this:

• I bond fixed rate: $10,000 × 1.40% ≈ $140 a year above inflation.
• Five-year TIPS: $10,000 × 2.31% ≈ $231 a year above inflation.
• Difference: about $91 a year, or roughly $455 over five years before compounding.

That is the price of the I bond's advantages. Whether it is worth paying depends on what you need the money to do.

Where I bonds win

• No price risk. An I bond's value never falls. You redeem it for its accrued value, whatever happens to interest rates.
• Tax deferral. You can defer federal tax on the interest until you cash the bond, according to TreasuryDirect. That suits savers in a high bracket now and a lower one later.
• Simplicity. There is nothing to trade and no market price to watch.

The limits are real: $10,000 in electronic I bonds per Social Security or employer identification number each calendar year, a one-year lock-up, and a three-month interest penalty before year five. I bonds are bought through TreasuryDirect, not through a brokerage account.

Where TIPS win

• A higher real yield. 2.31% at five years and 3.06% at 30 years, against the I bond's 1.40% fixed rate.
• No yearly cap of the kind I bonds have. You can buy at auction through TreasuryDirect or a broker, or on the secondary market, in multiples of $100.
• A known maturity. A TIPS maturing in a given year lines up with a planned expense, which makes them useful for retirement ladders.

The costs: a TIPS's market price moves with real yields, so selling before maturity can mean a loss. And in a taxable account, any increase or decrease in principal during the year may affect your federal taxes, as TreasuryDirect notes, so you can owe tax on inflation adjustments you have not yet received in cash. Holding TIPS in a tax-advantaged retirement account avoids that problem.

Which one fits which saver

• Emergency reserve beyond a few months' cash: I bonds, once the first 12 months have passed. No price risk, and the penalty is small.
• A retiree building income for the 2030s: a ladder of TIPS maturing in the years the money is needed, ideally held in an IRA.
• Someone in a high state tax bracket: both avoid state and local income tax, so the comparison with a bank CD or corporate bond improves for both.
• Anyone investing more than $10,000 a year: I bonds up to the cap, the rest in TIPS or in nominal Treasury bills, which our guide to a Treasury bill ladder covers.

How to buy each one

I bonds are sold electronically only through a TreasuryDirect account, opened online with a Social Security number and a bank account. There is no brokerage version, and the bonds sit in the TreasuryDirect account until you redeem them.

TIPS can be bought at a Treasury auction, either through TreasuryDirect or through a brokerage account, or later on the secondary market through a broker. Buying at auction gets you the auction's yield. Buying on the secondary market gets you the current market yield, which may be higher or lower.

A third route is a TIPS mutual fund or exchange-traded fund. Funds are easy to buy and sell, but a fund never matures, so its price can stay below what you paid if real yields rise. If the point is to know exactly what you will receive in a given year, individual TIPS held to maturity do that and a fund does not.

Common mistakes

• Comparing the I bond's composite rate with a TIPS real yield. The 5.51% includes inflation; the TIPS figure does not. Compare fixed rate with real yield.
• Buying long TIPS for short-term money. A 30-year TIPS can lose value if real yields rise, even though it protects against inflation.
• Forgetting the I bond's one-year lock. Money you might need in the next 12 months does not belong there.

For more on how today's yields affect savers and borrowers, see what 5% Treasury yields mean for your money, browse our Markets coverage, or return to the Wall Street Conservative front page.

FAQ

What is the I bond rate for November 2026?

The composite rate for I bonds issued November 1, 2026 through April 30, 2027 is 5.51%: a 1.40% fixed rate plus a semiannual inflation rate of 2.04%, according to TreasuryDirect.

Are TIPS better than I bonds right now?

TIPS pay more above inflation, 2.31% for five years against the I bond's 1.40% fixed rate on November 2, 2026. I bonds have no price risk and allow tax deferral. Which is better depends on your horizon and tax situation.

How much can I put into I bonds?

Up to $10,000 in electronic I bonds per calendar year per Social Security or employer identification number, according to TreasuryDirect.

Do TIPS and I bonds avoid state tax?

Yes. Interest on both is subject to federal income tax but exempt from state and local income tax.