War Bond (redirected from War bonds)

War Bond

In the United States, a formerly-issued savings bond, exempt from state and local taxes, with a fixed interest rate. These bonds were sold at three-fourths of face value and paid par upon maturity, which was originally 10 years, but later became 30 or 40 years. They began to be issued to help finance American involvement in World War II but they continued to be issued thereafter. They were non-transferable and must either have been held or redeemed. They were known formally as series E bonds. In 1980, the government stopped issuing war bonds and replaced them with Series EE bonds. For a time, war bonds were exchangeable for Series H or Series HH bonds, but this is no longer the case.