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- SavingsBonds.com News Tip -
- HH bonds to be discontinued as of mid 2004 - Sept. 2003 Tip- |
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| HH bonds to be discontinued as of mid 2004 |
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Speak Out
and post your opinion on the discontinuation of HH Bonds
Recently,
...the US Government quietly announced to the public that HH bonds would be
discontinued in mid 2004. With the end of summer here and 2004
quickly approaching, many investors are still not aware of this
critical change in the savings bond program.
By eliminating the ability to
obtain new HH bonds in mid 2004,
investors will no longer have the ability to defer paying federal
taxes on the interest accrued on EE/E/H bonds for up to 20 years
(or until you cash in the HH bonds or re-issue them). While previously issued HH bonds are
not affected by this change and will be valid until final maturity some US savings bond
investors have growing concerns over the way the government has been handling recent program changes.
Tell Us What You Think - Post Your Opinion
Have changes with the US Savings Bond program gone on too long without
hearing from the public? Or, is the government doing the right
thing without the public getting involved? Let us know!
Speak Out
and post your opinion on this topic. SavingsBonds.com invites you
to come and post how you feel about the US Savings Bond
program on our site at http://www.SavingsBonds.com/SpeakOut -
Let your opinion be heard, post your thoughts right now!
Here are 5 quick facts to keep in mind about HH bonds:
- HH bonds are current-income securities, meaning the HH bond does not increase in value.
- Interest payments are paid directly to your checking or savings account at a financial institution every six months. The semi-annual interest paid to your account every six months is subject to federal taxes, but exempt from state and local taxes.
- You can only "exchange" series EE or E bonds or reinvest matured H bonds (or FS/SN). They are not available for purchase. The amount of deferred interest from these bonds is indicated on the HH bond.
- The Interest rate is fixed (or locked in) on the day you buy the bond, and will continue to pay that rate until the bond reaches 10 years old. Rates are reset on the 10th anniversary, when the bond enters into an extension, the current HH rate in effect will now apply for the next 10 years.
- Available in denominations of $500, $1,000, $5,000 or $10,000. There is no limit on the amount of HH bonds you can own. You can exchange as many EE, E or H bonds as you want for HH bonds, but the bonds must total at least $500.00 (you can add or receive cash back to make up the difference of the cost of the bond).
Have a topic you would like to see as a tip? Write to
info@savingsbonds.com
We'll be bonding again soon.
Matthew O'Such - Savings Bond Consultant
SavingsBonds.com Inc - www.SavingsBonds.com
tips@savingsbonds.com
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