savings bonds

H Savings Bonds

Referred to as 'current income bonds'.
Denominations Available:  $500, $1,000, $5,000, and $10,000.
Issued:  first offered on June 1 1952 - December 1979,  replaced by Series HH bonds on January 1, 1980.
Purchased at face value by cash at first but most were exchange for the equal value of E bonds or Freedom Shares/Savings Notes.
Reaches final maturity 30 years from issue date.
Series H bonds were issued only in registered, definitive form and are not transferable.
Can cash them in anytime after six months from issue date.

  Interest rate:
    Series H bonds are current-income bonds that pay interest semiannually by check or wire transfer through the Automated Clearing House. Series H bonds entering an extended maturity period on or after March 1, 1993, earn 4 percent per annum, paid semiannually
    Visit our rates page for the current interest rates.

  History:
   Series H bonds were first offered on June 1, 1952, as a companion to Series E bonds for investors who preferred to receive current income. They were replaced by Series HH bonds on January 1, 1980.

  Redemption:
    A Series H bond became eligible for redemption at par at any time after 6 months from its issue date at certain Federal Reserve Banks. We will accept a request to delay redemption where bonds are surrendered for redemption in the month prior to an interest payment date, if the holder specifically requests the delay. We will not accept a request for delayed redemption if it is received more than one month before the interest payment date.

  Maturity:
    Series H bonds issued from June 1952 through January 1957 had an original maturity period of 9 years, 8 months. Those issued from February 1957 through December 1979 had a 10-year original maturity period. This rate was fixed - there is no market rate on H bonds. All Series H bonds were granted two 10-year extended maturity periods. Immature and matured Series H bonds can be exchanged for Series HH bonds.

  Federal income tax:
    Interest on Series H bonds is reportable for Federal income tax purposes in the year in which it is earned. Investors who had elected to defer reporting interest accruals on Series E bonds and savings notes for Federal income tax purposes were permitted to continue the deferral as long as the accrued interest was included in the purchase price of Series H bonds received in exchange.

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