Everything you need to know about Series HH Savings Bonds

Last Updated: March 5, 2019 | by Jackie Brahney | reviewed by Jack Quinn

HH Savings Bond

Series HH Savings Bonds work differently  from E, EE or I Savings Bonds. Learn where to obtain cash-in values, interest rates and if they are still earning interest.

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What is An HH Savings Bond?

HH bonds are current-income securities, issued in paper form only. You would have “paid” face value and receive interest payments by direct deposit to a checking or savings account every six months until the HH Bond reaches its final maturity (or redeemed). HH bonds were available only in exchange for Series EE or Series E bonds or upon reinvestment of matured Series H bonds. HH Bonds were also referred to as ‘current income bonds.”


One of the most compelling reasons to purchase HH bonds was the ability to defer reporting the interest from E, EE, Savings Notes (and even H Bonds) for an additional 20 years

HH Bonds are no longer available for “purchase” however they may still be earning interest depending on the issue date (see below).

HH Bonds work differently than series E, EE, and I Savings Bonds.  Unlike HH (or H) Bonds, interest is included in the value of these bonds.

  • HH Bonds were issued January 1, 1980 through August 31, 2004.
  • Denominations available: $500, $1,000, $5,000, and $10,000.
  • Minimum Exchange from E/EE bonds was $500.
  • Were sold at face value. (Example: A $500 HH Bond cost $500).
  • They replaced Series H bonds (which are also no longer available).
  • HH Bonds were also referred to as ‘current income bonds.”
  • Series HH bonds were not sold for cash. They were only available in exchange for Series EE bonds, Series E bonds, Savings Notes whose final maturity date was not more than one calendar year earlier than the issue date of the Series HH bond.
  • Proceeds of matured Series H bonds could have also been reinvested in HH bonds.
  • Series HH bonds were issued only in registered physical form and are not transferable.

How Do HH Bonds Work?

  • Interest is paid semi-annually beginning six months from the issue date of the HH Bond.
  • Interest ceases at final maturity, which is 20 years from the issue date.
  • The HH Bond must have been held for at least six months prior to redemption (all HH Bonds are at least 6 months old and can be redeemed).
  • 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.
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What Are The Interest Rates For HH Bonds?

  • The current interest rate for unmatured HH Bonds is 1.5%
  • HH Bonds pay interest at a fixed rate for the first 10 years, which is determined on the day the bond was purchased.
  • After the initial 10-year period, HH Bonds automatically enter into a ten-year extension and assumed a new guaranteed interest rate.
  • 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.
  • HH bonds issued before October 1989, interest was paid through ACH or by check.

What Are My Bonds Worth?

  • HH bonds are “purchased” at face value (meaning a $500 HH Bond cost $500) and interest is paid every six months.
  • When you redeem the HH Bond, you will get the amount you “paid” for it or the “face value” which appears on the bond.

To obtain current savings bond values for paper Series E, EE, I or Freedom Shares and Savings Notes, use the SavingsBonds.com complimentary calculator, which provides accurate savings bond values, interest rates and detailed financial information. Included is a printable, personalized, color-coded Savings Bond Inventory Report with a “what this means to you” explanation.

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 series E, EE, MUST be reported when the HH bond is cashed in, or reaches final maturity, whichever occurs first.
  • The amount of the deferred interest is included in the face amount of the HH bond and is indicated in a tax-deferral legend section found on the FRONT of the paper bond.
  • If the exchange included more than one HH Bond, the amount of the deferred interest would have been divided proportionately among the HH Bonds.

When Do Savings Bonds Mature?

  • HH 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).
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What Taxes Will I Owe On HH Bonds?

  • Semi-annual interest payments on HH Bonds are subject to Federal income taxes.
  • HH Bonds are NOT subject to state and local income taxes.
  • HH Bond interest must be reported on ones federal income tax return for the year in which any interest is paid.
  • The U.S. Treasury Department issues an interest income statement via a 1099-INT by January 31 of each year showing the annual interest earned on the HH Bonds for the previous year.
  • If you used your bonds in exchange for  HH bonds, and the HH bonds that were issued are in YOUR name with a co-owner., you will owe the taxes on the bonds when redeemed.
  • When you exchanged for HH bonds, and  you submitted bonds that you and another person bought TOGETHER, each person providing part of the money to buy the original  bonds (and both named as co-owners on the HH bonds issued in the exchange) must pay the portion of the taxes based on the percentages paid for the E, or EE Bonds.

Additionally,

If you (or the original bond owner) deferred paying federal income tax on interest earned on series  EE or E Bonds, which you exchanged for the HH Bonds that are being redeeming, interest earned on those bonds will need to be reported that was deferred interest for the year in which the HH Bonds reach final maturity or are redeemed, whichever occurs first. You will receive an IRS form 1099-INT showing all the deferred interest, which is also reported to the IRS.

  • HH bonds with issue dates of November 1982 and later were only available in exchange for other bonds that had been bought earlier.
  • Rules for these exchanges allowed the HH bond owner to wait to get the interest earned by the earlier purchased bonds – which allows the individual to postpone (defer) paying tax on that interest,  until the HH Bond’s life ended, either because it was redeemed or reached 30 years.
  • With this  type of exchange, the Treasury allowed the older bonds’ interest to continue to be deferred for Federal Income Tax reporting purposes as part of  HH bond ownership.

How Do I Cash In HH Savings Bonds?

HH Savings Bonds may be able to be cashed in at banks that handle savings bond transactions. Call ahead to the bank before trying to redeem any Savings Bonds for specific identification required, instructions on redemption details as well as daily redemption limitations.

If your bank or financial institution will not redeem the bonds:

Make a copy of the HH Bonds for your records. Then complete FS Form 1522 (download or order). Follow instructions on the form and make certain your signature is certified according to the instructions on the form.

Send the form and your original bonds to:

Treasury Retail Securities Site, P.O. Box 2186, Minneapolis, MN 55480-2186.

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Who Do I Contact For HH Bond Questions?

If you have questions regarding interest deposits into your bank account or a change to your  bank account number, contact your bank directly as the first step.

If you have not received an interest payment, contact your bank first, if they can’t resolve the problem then write or call the Treasury Department at:

Treasury Retail Securities Site, P.O. Box 2186, Minneapolis, MN 55480-2186

Treasury Departments customer service department toll free number is 844-284-2676, open from 8 a.m. to 6 p.m. EST, Monday-Friday (closed holidays).

Created on: January 15, 2012

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Jackie Brahney

Marketing & Editorial Director at SavingsBonds.com
Jackie Brahney is the Marketing and Editorial Director and most notably, an U.S. Savings Bond Expert for SavingsBonds.com. Since 1991, she has done extensive research on savings bonds and state of the art savings bond valuation systems, and heads the company's public relations and marketing initiatives.
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