Treasury hasnt issued hh bonds since the end of august 2004, but the bonds still earn interest until redemption or maturity. You paid face value and receive interest payments by direct deposit to your checking or savings account every six months until maturity or redemption. That means that not only have they stopped earning interest, but all of the accrued and as yet untaxed interest is taxable in 2019. Series ee bonds issued in january 1989 reached final maturity after 30 years, in january 2019. Series hh bonds hh bonds are acquired by exchanging ee bonds for them at maturity. Series hh bonds, which replaced series h savings bonds after 1979, were available from january 1980 to august 2004. In the past, the united states treasury department offered three types of bonds. Treasury announced a newly designed face for series ee and hh savings bonds as part of a gradual shift from punch card to paper bond stock. Mar 01, 2019 series ee and i are intended to be savings bonds, and series hh is intended to be an investment bond. Series ee and i are intended to be savings bonds, and series hh is intended to be an investment bond. Do savings bonds continue to earn interest after maturity. Hh bonds earn interest that we pay every six months. Treasurys ee bonds issued in 1981 and 1982 only took eight years to reach full face value, while the same ee bonds.
Apr 19, 2017 most savings bonds earn interest for 30 years, although hh bonds earn interest for 20 years, and old series e bonds from november 1965 and earlier earn interest for 40 years. The difference between ee, hh, and i savings bonds borgida cpas. Jun 05, 2019 how to handle inherited hh bonds matured, but not redeemed according to irs pub 550, series hh bonds pay interest to the owner every 6 months until maturity. Series ee savings bonds issued in the 1980s and early 1990s have an original maturity of 20 years, and an extended maturity of 10 years, for a total of 30 years until the final maturity of the bonds. To report bond interest, without form 1099int, enter it as if you had a 1099int form. Series h savings bonds that were issued through january 1957 ceased paying interest after 29 years and eight months. Instead, interest is paid out every six months and sent directly to the bond owners bank account.
You locked in the interest rate for the first 10 years after the hh bonds issue date. Sep 24, 2019 when the bonds reach final maturity, they stop earning interest. Savings bonds within one month of final maturity cannot be reissued. How long will it take for a savings bond to reach its face value. Penalty for a savings bond past final maturity budgeting money. This change was an enormous benefit, giving investors far more money to work for them. The interest rate is the same fixed for the first 10 years after the bond s issue date. H and hh bonds differ from other savings bonds in that investors buy them at face value and the bonds pay out interest in cash semiannually.
Series e savings bonds issued in 1975 stopped earning interest in 2005 at the bonds final maturity. If there is a typed or handwritten amount on the face of any series hh or h bond, that amount will be reported to the irs for the tax year of the redemption. Unlike ee bonds, hh bonds are currentincome securities. What happens when bonds are mature but not being cashed in the maturity date on a bond tells you when the both is worth at least the principal.
Like eee bonds, these bonds were issued at a discount with the interest deferred until redemption. How to cash hh savings bonds with minimal tax consequences. Instead, you can wait until the final maturity and pay the tax all at once, when you cash the bond. Dec 19, 20 find out the current status of your h and hh savings bonds. The interest rate of an hh bond was set on the day it was purchased and remained that rate for 10 years. Government savings bonds can be eee, h hh or i bonds. Series i savings bonds what they are and how to buy them. Series hh savings bond financial definition of series hh. Savings bonds by sapling team updated march 28, 2017 it is important to determine the maturity of any u. Interest income received from series hh savings bonds must be reported in the tax year it is received, but it is not subject to state and local taxes. Series hh savings bonds reached maturity and stop earning interest income altogether on the twentieth anniversary of the issue date. When the bonds are redeemed, the interest is taxed as ordinary income for federal income tax. Dec 05, 2019 hh bonds were available only in exchange for series ee or series e bonds or upon reinvestment of matured series h bonds. The bank will issue a 1099 for the year you redeem the bonds.
Savings notes had 30 years to final maturity and today no longer earn interest. You have a choice on when you report your bond interest. You pay taxes on the interest in the year you cash out the bonds. The series of bond you have should give you a good idea if the bond has expired.
Lets talk about series ee savings bonds september 30, 2019 if you have series ee savings bonds and are wondering how the interest you earn on them is taxed, or if you have ones reaching final maturity and need to take action to ensure theres no loss of interest or unanticipated tax consequences, this article is for you. Savings bonds calculator series ee savings bonds faq bankrate. Bonds are issued by month and their maturity dates depend on the type of bond you have and when you purchased it. Series hh bonds were not sold directly to the public. You will see a get started button, click on it to access the calculator. The rate of interest and the maturity of these bonds varied based on the date of initial issue. This type of childhood savings bond came with a fixed interest rate of 1. This coupon is locked in at a fixed rate for the first 10 years, after. At local bank or credit union except hh bonds which must be redeemed through u. A bond dated in the month of january has interest due each july 1 and january 1, for example. The treasury department issued hh bonds only as paper bonds in four denominations. Series ee bonds series ee bonds mature after 30 years, meaning they can earn interest for that.
It was a way to encourage them to keep lending money to the. Form 8815, exclusion of interest from series ee and i u. Effective january 1, 2003, the investment yield for series hh savings bonds that are issued or enter into an extended maturity period on or after january 1, 2003, will be set by announcement by the secretary or the secretarys designee. Series hh savings bond in the united states, a formerlyissued savings bond, exempt from state and local taxes, with an interest rate fixed for 10 years. Reissue with a coowner reissue with a beneficiary note. Hh bonds earn interest for up to 20 years, so you may still have hh bonds that are earning interest. On the lets get the details from your 1099int or brokerage statement screen, be sure to check the checkbox for my form has info in more than just box. Interest payments work differently for hh bonds compared to.
How long will it take for a savings bond to reach its face. Government savings bonds can be eee, hhh or i bonds. Series hh bonds may only be acquired by investors who have series ee or e bonds or u. Individual comparison of tips and series i savings bonds. Sep 26, 2019 when the bonds reach final maturity, they stop earning interest. Series hhh series hhh bonds paid interest throughout the life of the bond and were redeemable at face value. Individual rates and terms for series hh savings bonds. Treasurys 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 owners designated depository institution. If you still have hh savings bonds around the house, chances are they were given to you by a relative. Tax reporting of interest can be deferred until redemption, final maturity, or other taxable disposition, whichever occurs first. We are amending the offering regulations for united states savings bonds of series hh.
Series hh bonds were available to be purchased in exchange for series ee or e bonds and savings notes, or with proceeds from a matured series hh bond. If the series name is anything else, then its probably from an outdated series and has matured you can look up the series name on the. Hh bonds were available only in exchange for series ee or series e bonds or upon reinvestment of matured series h bonds. There are several ways you can handle this, depending on whose name is on the bonds. You can cash them in, but you will owe taxes on those bonds you cash. Before series hh savings bonds, we issued series h savings bonds. When the bonds reach final maturity, they stop earning interest. Find out the current status of your h and hh savings bonds. Most savings bonds earn interest for 30 years, although hh bonds earn interest for 20 years, and old series e bonds from november 1965 and earlier earn interest for 40 years. Therefore, it is wise to cash an hh bond shortly after its.
We no longer offer series hh savings bonds, but some we issued in the past havent matured and are still paying interest. The series hh bonds were discontinued in august 2004. Among savings bonds that have fully matured and stopped earning interest are entire series of older bonds such as a through d, f, g, j and k. If you own ee bonds paper or electronic, check the. Investors could acquire them only by exchanging eee savings bonds or reinvesting mature h bonds. If the bonds reached maturity in 2010, the owner should have already reported all of the interest earned by the series hh bond. The e savings bond was originally issued with a maturity of 10 years. On the bonds 10 th anniversary, we could reset the rate for the next 10 years of the bonds life. When you cash an hh bond, we do not pay interest for part of a sixmonth interest earning period. These bonds do not accrue interest, meaning interest earned is not added to the value of the bond. Series ee bonds dated january 1980 through march 1985 and series hh bonds dated january 1980 through march 1995 have also reached full maturity. Series e bonds issued up to november 1965 earn or accrue interest for 40 years, and those issued on or after december 1965 do so for 30 years, when they reach final maturity.
At local bank or credit union except hh bonds which must be. What happens when bonds are mature but not being cashed in. Most savings bonds mature and stop earning interest after 30 years, and some have shorter maturity periods. To see in which months we pay interest on your hh bond, see rates and terms for series hh savings bonds. How long does it take for series ee bonds to mature. How to handle inherited hh bonds matured, but not redeemed tax is paid in the year you redeem the bonds. How to handle inherited hh bonds matured, but not redeemed. Theres no point in holding on to them and giving the government an interestfree loan. Fs form 5394 agreement and request for disposition of a. For series hh bonds, see redeeming cashing series hh savings bonds after youve held them for 12 months, you can simply take them to your local bank.
Penalty for a savings bond past final maturity budgeting. This amount represents interest that was earned on the series ee or e bonds andor savings notes that were exchanged for the hh or h bond with tax deferral privileges. How to report us savings bond series ee interest, without. Series hh bonds mature 20 years after the issue date. Because they are a 20year nonmarketable bond, some people still own hh bonds. Individual cashing redeeming series hh savings bonds. By exchanging the series ee savings bonds for series hh savings bonds, you could have deferred all of those taxes for up to an additional 20 years. The difference between ee, hh, and i savings bonds.
Series h and series hh savings bonds paid current income interest for each sixmonth period the bonds where held. The rate is fixed for the first 10 years, after which it. H and hh savings bonds status and maturity youtube. Series e bonds bought between may 1941 and november 1965 mature in 40 years, but if you bought the same type of bond between december 1965 and june 1980, it would mature in 30 years. Savings bonds are no longer available for purchase. These bonds paid par upon maturity, which was 20 years after issue. How to handle inherited hh bonds matured, but not redeemed according to irs pub 550, series hh bonds pay interest to the owner every 6 months until maturity.
They were nontransferable and must either have been held or redeemed. Aug 01, 2017 series hh bonds mature 20 years after the issue date. H and hh bonds differ from other savings bonds in that investors buy them at face value and the. Click the price your savings bonds, button then the savings savings bonds calculator button.
Series hh savings bonds paper reissue in singleowner form. More than 95% of savings bonds are cashed at local banks and credit unions. Department of the treasury began issuing series hh savings bonds in 1980 and discontinued their sale after aug. Additionally, the treasury formerly offered series hh bonds, which were current. Interest is subject to federal income tax, but exempt from state and local income taxes. Aug 08, 2014 most savings bonds mature and stop earning interest after 30 years, and some have shorter maturity periods. Treasury bonds, you may have noticed some series ee savings bonds mature on different dates. Treasurys ee bonds issued in 1981 and 1982 only took eight years to reach full face value, while the same ee bonds issued in 2020 take 20 years to reach their full face value. Key in the required information including the investments serial number, series, value, issue date, and, denomination.