Series HH savings bond

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Series HH Savings Bond

In the United States, a formerly-issued savings bond, exempt from state and local taxes, with an interest rate fixed for 10 years. These bonds paid par upon maturity, which was 20 years after issue. They were non-transferable and must either have been held or redeemed. Very often, the interest rate dropped to 1.5% after 10 years, which rarely kept pace with inflation. Series HH bonds were discontinued in 2004. See also: Series H bond.

Series HH savings bond

A U.S. Treasury obligation issued in multiples of $500 that pays interest every six months. The security has a maturity of ten years but may be redeemed after being held six months. This security has not been as popular as the Series EE bond. Now it may be obtained only by swapping the Series EE at its maturity.
References in periodicals archive ?
Bond holders will no longer be able to reinvest HH/H bonds or exchange EE/E bonds for HH bonds.
In light of government actions eliminating HH bonds that offered tax deferment, closing savings bond marketing offices, and the likelihood of states confiscating matured savings bonds, Quinn suggests Seniors seek professional advice regarding their savings bond investments.
Under this option the EE bond interest was not reported until the HH bonds were redeemed or matured.
After conversion, they will receive semi-annual interest payments from the Series HH bonds, which must be included on their returns.
The HH bond series allowed investors to roll maturing proceeds from other bonds series into HH bonds and then earn taxable interest every six months on the HH Bonds.
Series HH bonds are current-income securities that do not increase in value.
Treasury's savings bond offerings today consist of series EE bonds, the interest earnings on which accrue until the bond matures or is redeemed, and series HH bonds, which are obtained in exchange for series E or series EE bonds and pay interest twice per year, via ACH, to the owner's designated depository institution.
The fiscal 2011 series HH bonds are scheduled for negotiated sale the week of June 13.
HH bonds issued through August 2004 will continue to earn interest until they reach final maturity 20 years after issue.
When Series HH bonds are issued, the rate is fixed and can be reset every 10 years.
The series HH bonds rank on parity with first lien, $201.
To take advantage of higher rates, you can redeem EE bonds or HH bonds without loss of principal.