| Notice: August 31st, 2004 was the
last issue date for HH/H Bonds. After August 31, 2004, the government discontinued the exchange of bonds for HH/H bonds.
Current holders of HH/H Bonds will not need to do anything different than they normally would have.
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Also called 'current income
bonds'. Holder receives interest payments every six months since the date of
issue.
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Denominations Available: $500, $1,000,
$5,000, and $10,000.
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Minimum Purchase is $500.
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Issued: January 1980 to
Present, at 100 percent of the face amount.
Series HH bonds are not subject to a purchase limitation.
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Reach final maturity twenty
years from date of issue.
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You can cash in HH bonds
anytime after 6 months.
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Series HH bonds are not sold for cash. They are
available in exchange for Series EE bonds, Series
E bonds, and Savings Notes whose final maturity date is not
more than one calendar year earlier than the issue date of the Series HH bond. The
proceeds of matured Series H bonds can be reinvested in HH bonds |
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Series HH bonds are issued only in registered
physical form and are not transferable.
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Interest on Series HH bonds issued on or after
October 1, 1989, is paid electronically through the Automated Clearinghouse (ACH) to the
registered owner or co-owner's account at a financial institution. For HH bonds issued
before October 1, 1989, interest may be paid through ACH or by check.
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HH Bonds pay interest at a fixed rate, which
is determined on the day you purchased your bond for the first 10 years.
After this period, these bonds automatically enter into a ten year extension
and will assume a new guaranteed rate. |
A SavingsBonds.com Inc. TIP:
The most compelling advantage of the HH bond is that the interest
income from E, EE and SN/FS can be deferred for up to twenty additional years.
The interest that was rolled over from the E, EE, or SN/FS MUST be reported when
the HH bond is cashed in, or reaches final maturity, whichever occurs first.
(NOTE: You can report the interest income for the E, EE and SN/FS when you
exchange to HH bonds).
Interest rate:
Series HH bonds are current-income bonds and are issued at the face
amount. Series HH bonds issued on or after March 1, 1993, and Series HH bonds entering an
extended maturity period on or after that date earn interest at a rate of 4 percent per
year. Since then, there have been more than 4 changes to the HH Bond interest rate. Interest is paid semi-annually beginning six months from the issue date. Interest
ceases at final maturity.
Visit our rates page for the current interest
rates.
History:
Series HH bonds were originally offered on January 1, 1980, to replace Series H bonds, which were withdrawn from sale.
Redemption:
If a Series HH bond is redeemed before final maturity, interest ceases as of
the end of the interest period preceding the date of redemption. If the redemption date
falls on an interest payment date, interest ceases on that date.
Maturity:
Series HH bonds have an original maturity period of 10 years and
have been granted one 10-year extension of maturity with interest, bringing their final
maturity to 20 years.
Federal income tax:
Interest that is paid semi-annually on Series HH bonds is reportable
(subject to) Federal income tax
purposes in the year in which it is received. Interest is exempt from state and
local taxes.
NOTE: These bonds are NOT eligible for
the tax free education feature.
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