- Savings Bond News Tip - Aug 2002 - ---------------------------------------------------- VALUE Your Savings Bonds Online! Value, track, store and receive Monthly Summary Statements for ALL of your Savings Bonds with The Savings Bond Guru. Value some bonds with our Free Trial to find out what your bonds are really earning. Click here to learn more about this service! Sign-up right now! ----------------------------------------------------    Are HH bonds a more profitable alternative to EE bonds? With EE savings bond rates currently at 3.96%, many investors are considering HH bonds, currently paying 4.0%, a safer and more profitable alternative. Ten things you should know before you consider exchanging to HH bonds: Called current income bonds, they are exchanged at face value (you exchange $500 worth of bonds for a $500 HH bond) They are only available by exchanging E, EE, or H bonds anytime after the bonds are six months old or within one year of final maturity (I bonds DO NOT qualify) Available in $500, $1,000, $5,000 or $10,000 denominations HH bonds do not qualify for the education feature Interest earned by E, H, EE bonds can be deferred for 20 years Interest is paid semi-annually to a checking or savings account and is subject to federal tax but exempt from state and local taxes Interest is locked in at a fixed rate for the first 10 years After ten years, bonds enter into a ten-year extension and assume the new rate in effect at that time Reaches final maturity after 20 years Can be cashed in anytime after 6 months; all deferred interest will be reported in the year the bond is cashed in or reaches final maturity, whichever comes first Bond Consultant Tip: HH bonds may be an attractive, stable alternative to lower yielding E or EE bonds. You know what you'll get for the next ten years. Always review each bond's performance before you make the (ex) change. Your overall lifetime interest rate might be outperforming the current HH rate. Money Tip: If you decide to exchange E or EE bonds, time your exchange just after your bonds next interest posting date to avoid forfeiture of interest. Can't figure it all out on your own??? Try The Savings Bond Guru's free bond value and analysis trial at www.savingsbonds.com. It provides the facts and figures, interest rates and maturity dates to help you make more profitable choices. We'll be bonding soon. If you have any questions, or would like a topic covered, write to info@savingsbonds.com Jackie Brahney - Savings Bond Consultant The US Savings Bond Consultant, www.savingsbonds.com jbrahney@savingsbonds.com Note: The information provided in this news tip is purely informational. Please consult a financial professional for financial advice before making any financial transactions.