Like the owner of any other E or EE bond, the owner of E and EE bonds acquired from a decedent could exchange them for Series HH bonds (or H bonds before 1980--but see Editor's Note, below) without recognition of unreported interest.
(3bd) Although these bonds can be exchanged for Series EE savings bond, they can no longer be exchanged for Series HH savings bonds because the Bureau of Public Debt stopped offering Series HH bonds to the public effective August 31, 2004.
Series HH Bonds
: Once again, start by taking the bonds to your financial institution, along with your identification.
After conversion, they will receive semi-annual interest payments from the Series HH bonds
, which must be included on their returns.
Series HH bonds
are current-income securities that do not increase in value.
When Series HH bonds
are issued, the rate is fixed and can be reset every 10 years.
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.6 The savings bond program is a stable and sizable source of debt financing for the government.
Savings Bonds are presently available, Series EE and Series HH bonds.
Series HH bonds are current-income securities in denominations of $500, $1,000, $5,000, and $10,000.
Previously, an individual could, at maturity or before, exchange a Series E or EE bond for a Series HH bond
(or Series H bond before 1980--but see Editor's Note, Q 1143) without recognizing the unreported interest, except that he must report the interest to the extent he receives cash in the exchange.