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HH Savings Bonds

Current Interest Rate for HH Bonds: 1.50%


HH Bonds are no longer available by exchange from E/EE Bonds as of August 31, 2004


History of the HH Savings Bond

Series HH bonds were originally offered on January 1, 1980, to replace Series H bonds, which were withdrawn from sale. Series HH bonds were not sold for cash. They were available in exchange for Series EE bonds, Series E bonds, and Savings Notes whose final maturity date was not more than one calendar year earlier than the issue date of the Series HH bond.

The proceeds of matured Series H bonds could have been reinvested in HH bonds as well.

Series HH bonds were issued only in registered physical form and are not transferable.

Also called 'current income bonds', a holder receives interest payments every six months since the date of issue.

Denominations: $500, $1,000, $5,000, and $10,000

Minimum Exchange from E/EE bonds was $500.

Issued from January 1980 to August 2004 at 100 percent of the face amount.

HH Savings Bond Maturity Rules

HH savings bonds will each final maturity twenty (20) years from their date of issue.

An HH Savings Bond is worth its face value at cash-in. The interest from HH Savings Bonds is paid directly into a savings or checking account on record by the Treasury Department.

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.

HH Savings Bond Interest Rules

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.

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.

Interest is paid semi-annually beginning six months from the issue date. Interest ceases at final maturity.

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.

Deferred Tax Rules for HH Savings Bonds

The most compelling advantage of the HH bond is that the interest income from E, EE and SN/FS was 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.

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.

How to Cashin HH Savings Bonds

HH Savings Bonds can be cashed in at most banks. Simply call your bank before going to cash it in just to be sure.

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