E BONDS | EE BONDS | I BONDS | HH BONDS | OLDER BONDS

(AKA "War Bonds")

	Denominations Available:  $25 , $50 , $75 , $100 , $200 , $500 , $1,000 , $5,000  and  $10,000.
	Issued:  May 1941 to June 1980.
	Purchased for 75% of face value. An Example:  a $100 bond in the past would have cost $75 at the time of purchase.
	E Bonds issued May 1941 - November 1965 earn interest for 40 years. December 1965 - June 1980 earn interest for 30 years.
	Series E bonds were issued only in registered, physical form and are not transferable.

  Interest rate:
    Series E bonds are accrual bonds that were issued at 75 percent of the face amount. Interest is paid at redemption as part of the current redemption value. Unmatured, unredeemed Series E bonds accrue interest at a market-based yield or the applicable guaranteed minimum investment yield, whichever is greater.
     A guaranteed minimum investment yield in effect at the start of an original or extended maturity period is guaranteed to the end of that original or extended maturity period. The guaranteed minimum investment yield for Series E bonds is 4 percent, compounded semiannually, beginning with extended maturity periods starting on or after March 1, 1993, unless the guaranteed minimum is changed prior to the beginning of an extended maturity period.
    Visit our rates page for the current interest rates.

History:
    Savings bonds were originally issued in 1935 to provide a secure and attractive instrument for investors of modest means and an additional source of funds for the Treasury. Series E bonds were first issued in May 1941. They played a major role in financing World War II and continued as a stable method of debt financing until they were replaced by Series EE bonds on July 1, 1980.

  Redemption or exchange:
    A Series E bond can be redeemed at a financial institution or Federal Reserve Bank at any time at the most recent semiannual accrual value. Series E bonds (along with Series EE bonds and savings notes) COULD HAVE BEEN exchanged for Series HH bonds, prior to final maturity of the E bonds, as well as for one year after the month in which they reach final maturity.

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.

 A guaranteed minimum investment yield in effect at the start of an original or extended maturity period is guaranteed to the end of that original or extended maturity period. The guaranteed minimum investment yield for Series E bonds is 4 percent, compounded semiannually, beginning with extended maturity periods starting on or after March 1, 1993, unless the guaranteed minimum is changed prior to the beginning of an extended maturity period.

  Maturity:
Series E bonds had varying original maturity periods, (when they reach face value), depending on their issue dates, ranging from 10 years for the oldest bonds to 5 years for the last ones issued. Series E bonds issued from May 1941 to November 1965 were granted three 10-year extended maturity periods. Those issued thereafter have been granted two 10-year extended maturity periods. Series E bonds issued from May 1952 through November 1965 have been granted an additional extension sufficient in length to make their total interest-accruing life spans 40 years. Those issued in December 1965 and thereafter have been granted an additional extension sufficient to make their total interest-accruing life spans 30 years.

  Federal income tax:
Series E bond interest is reportable for Federal income tax purposes for the year in which the Series E bonds are redeemed, reach final maturity, or are otherwise disposed of, whichever occurs earliest. Alternatively, a bond owner was able to elect to report Series E interest as it accrues. Series E bond holders who elected to defer reporting interest accruals for Federal income tax purposes can continue the deferral as long as accrued Series E bond interest is included in the purchase price (face or par amount) of Series HH bonds received in exchange.

NOTE: E Bonds are NOT eligible for the tax-free educational feature.