Series E Savings Bonds
E Bonds are no longer available for purchase - All have reached final maturity and are no longer earning interest.
History of the Series E Savings Bond
On May 1, 1941, the Series E bond was introduced, and with it the start of a national volunteer program. The volunteer program enlisted the nation's financial institutions, community leaders, volunteer committees, and advertising and communications media to promote the new bond.
Bankers, business executives, newspaper publishers, Hollywood entertainers, all served to provide the Treasury and the savings bonds program with manpower and support, making the program a success for more than six decades. Of special note are the executives of many Fortune 500 companies who served as members of the U.S. Savings Bonds Volunteer Committee which, from 1963 through 2003, played an essential role in the success of the payroll savings plan.
The Series E bond was patterned after its predecessors. It became he most durable of all the series and the world's most widely held security. As the "Defense Bond" of 1941, the "War Bond" of 1942-45 and subsequently just the savings bond - it was purchased by tens of millions of families.
Series E Savings Bonds are no longer available for purchase as of June 1980 and were replaced by EE Savings Bonds.
Series E Savings Bonds were purchased for face values of: $25, $50, $75, $100, $200, $500, $1,000, $5,000 and $10,000.
Purchased for 75% of face value. For Example: a $100 Series E Savings Bond would have cost $75 cash at the time of issue to purchase.
Series E Savings 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.
Active, 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.
Maturity Rules and Periods
Originally issued for a fixed term of 10 years, E bonds were granted interest extensions that brought their interest-bearing lives to 30 or 40 years, dependent upon the issue date of the bond.
Some Series E bonds continue to earn interest today, although the last E bonds will stop earning interest in 2010.
E Bonds issued May 1941 - November 1965 earn interest for 40 years and were granted three 10-year extended maturity periods.
E Bonds issued December 1965 - June 1980 earn interest for 30 years and were granted two 10-year extended maturity periods.
Cashing in E Bonds / Exchanging For H/HH Bonds
A Series E Savings Bond can be redeemed at a financial institution like a bank at any time at the most recent semiannual accrual value.
Series E bonds COULD HAVE BEEN exchanged for Series H Bonds or 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. This offer is no longer in effect.
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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.
Income Tax Information
Series E Savings 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 cashed in, 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.