The annual interest rate on U.S. Treasury-issued I bonds (inflation-protected savings bonds) has risen to 5.51%, the highest level since November 2022. The new rate applies to bonds purchased through April 30 of next year, with the variable rate component increasing to 4.08% and the fixed rate component rising to 1.40%, its highest since 2006. Financial experts note that despite the attractiveness of I bonds, investors should be aware of limitations such as purchase limits ($10,000 per person per year), funds being locked up for 12 months, and the forfeiture of the last three months' interest if redeemed within five years. For short-term cash needs, experts suggest considering alternatives like Treasury bills or high-yield savings accounts.