I Bonds interest rate just climbed to 4.03% for the Nov 2025-Apr 2026 period. That's up from 3.98% previously. Here's the breakdown: 0.90% fixed rate (locked in for life) + 3.12% inflation adjustment (resets every 6 months).

The catch? Fixed rate actually dropped from 1.10% last period. It's a decent inflation hedge if you're parking cash, but there are real limitations:

- Max $10k purchase per year
- Can't touch it for 1 year minimum
- Early withdrawal before 5 years = penalty
- Returns won't match stock market over long haul

Basically, I Bonds work if you want stable, predictable returns that slightly beat inflation. Not a wealth-building tool, just portfolio insurance. Current inflation is around 3%, so you're getting roughly 1% real yield. Worth considering if rates spike unexpectedly.