HH Offering Ends In August
In February, we announced that Series HH Savings Bonds would no longer be offered after August 31, 2004. You need to act quickly if you are interested in exchanging your E or EE Bonds for HH Bonds or if you have matured HH/H bonds that you want to reinvest into new HH bonds before the deadline. You may want to consider if an exchange or reinvestment is right for you.
Here are some facts to keep in mind. HH Bonds issued through August 2004:
- continue to earn interest until they reach final maturity 20 years after issue.
- are available in exchange for eligible Series E or EE Bonds with a total redemption value of $500 or more.
- can be issued upon reinvestment of matured HH/H bonds.
- are current-income securities that pay interest to their owners semiannually at a flat rate of 1.5%.
- will continue to be serviced until they reach maturity.
If you decide to exchange your Series EE/E Bonds on which you have deferred reporting the interest, you may continue to defer reporting the interest until the Series HH bonds you receive in exchange are cashed, stop earning interest, or are reissued in a transaction reportable for federal income tax purposes. These securities remain eligible for exchange for a period of one year from the month in which they reach final maturity.
If you want to exchange your Series E or EE Bonds for HH Bonds prior to August 31, 2004, complete Form PD F 3253, "Exchange Application for U.S. Savings Bonds of Series HH", and submit it with the securities being exchanged to a qualified savings bonds agent. To reinvest your matured HH/H bonds, complete and sign a Form PD F 1993, "Reinvestment Application" to request payment of the matured bonds and reinvest the proceeds in new Series HH bonds. Financial institutions (banks or credit unions) that serve as agents can help you fill out the application form and forward the appropriate materials to a Federal Reserve processing site or the Bureau of the Public Debt. Learn more about Series HH Bonds and the exchange transaction in our frequently asked questions about HH/H Savings Bonds.