Savings Bonds
Series E Bond
Replaced by Series EE bond in 1980.
Series H Bond
Replaced in 1980 with Series HH Bond.
Types of Savings Bonds
Series E Series EE Series H Series HH Series I
Series EE Bond
Sold at 100% of face value in any denomination from $25 to $10k. Eligible to earn interest for 30 years. Interest rate applied is fixed for the life of the bond.
How long must Series EE bonds be held?
A minimum of 12 months. A 3 month interest penalty is assesed if the bond is redeemed within 5 years.
Series HH Bonds
Could only be obtained by exchanging Series EE Bonds that were at least 6 months old. No longer issued as of 2004. Tax Deferred. Semiannua interest. Up to 20 years. No penalty for early redemption.
State taxation of series EE HH and I bonds.
Exempt from state or local taxation regardless of use.
Are there any expenses for which interest on Series EE or Series I bonds can be excluded from income?
IF the bond proceeds are used to pay for qualified higher education costs. Although there are phaseout levels.
Series I savings bond.
INflation-indexed, purchased electronically in any denomination from $25-$10000. Interest rate is a combination of two separate rates. Fixed rate of return that remains the same for the life of the bond, and a semiannual inflation rate based on changes int he CPI during the previous 6 month period. Semiannual inflation combined with fixed rate to determine interest rate for the next 6 months. May be redeemed any time 12 months after the issue date for the principal plus interest. If redeemed within the fist 5 years there is a 3 month interest penalty.
