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Savings Bonds: Series HH – Basics
Series HH savings bonds, also known as “current-income bonds,” do not increase in value because they were purchased at face value. However, interest, which is at a fixed rate determined at time of purchase, is paid every six months via direct deposit into your account at your financial institution. As of September 1, 2004, HH savings bonds are no longer issued and cannot be transferred. If you own HH bonds, you will continue to receive interest on them until they mature. Below are the basic characteristics of Series HH savings bonds.
Features of Series HH Bonds
| Issued |
January 1980 – September 1, 2004 |
| Type |
Income bonds;
Interest payments are received every six months from the issue date. |
| Transferable |
no |
| Investment Yield |
Paid at a fixed rate, determined on the day it was purchased for first 10 years.
Issued before January 1, 2003: 4.0% for the first 10 years.
Issued before January 1, 2003: 1.5% for the second 10 years
Issued after January 1, 2003: 1.5% |
| Redemption | If redeemed before final maturity, interest stops at end of interest period preceding redemption date. Must be redeemed at a Federal Reserve Bank. |
| Taxes |
Exempt from state and local income taxes;
Interest reported for Federal income tax in the year the interest is received. |
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