I Bonds vs Treasury Bonds: Which One Should You Buy?
With the Federal Reserve cutting rates from 4.33% in early 2025 to 3.64% as of January 2026, fixed-income investors face a shifting landscape. Two of the most popular government-backed options — Series I Savings Bonds and marketable Treasury securities — offer fundamentally different value propositions. Understanding the distinction has never been more important as inflation moderates and yields adjust. I Bonds currently average a 4.213% composite rate, while 10-year Treasury notes yield 4.02% and 2-year notes sit at 3.42%. Both are backed by the full faith and credit of the U.S. government, but they differ sharply in liquidity, purchase limits, inflation protection, and how they fit into a broader portfolio. This guide breaks down each instrument with current data so you can make an informed allocation decision. Whether you are building a conservative income portfolio, hedging against inflation, or simply looking for a safe place to park cash, the choice between I Bonds and Treasuries depends on your time horizon, how much you want to invest, and how you weigh inflation risk against interest rate risk.