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EE bonds to ???
Old 12-24-2003, 10:54 AM   #1
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EE bonds to ???

My dad is currently carrying a whole box full of old EE bonds with very favorable interest rates that he built up over about a 25 year period.

He's been living off the interest from these, occasionally selling a bond to reinflate his bank account. I dont know a darn thing about them, but last time he went in to sell one they wanted to get him to roll his EE's over to H-bonds and he passed because the interest rates are too low.

For the bond experts here, what would be his best bet as this bond bundle ages. Keep them, roll them into H bonds, buy some other bonds? He's one of the "dont trust the stock market" types after a bad experience in the 70's.

Last time I checked he had about $300k worth at age 70, in excellent health. No mortgage or car payments/other debt, lives on about $22k annually.

Any advice most welcome.

Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: EE bonds to ???
Old 12-24-2003, 12:33 PM   #2
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Re: EE bonds to ???

Savings Bond Calculator in case you want to know what the current bonds are providing:

Everything you wanted to know about savings bonds:

specific H/HH bond information:

.3. The Series HH Savings Bond

The Series HH Savings Bond is a current income security issued in paper form by the Treasury Department. You buy Series HH Savings Bonds for full face value. For example, you pay $500 for a $500 Series HH Savings Bond. The Treasury has announced its intention of discontinuing issuance of HH Bonds in mid-2004.

Unlike I Bonds and Series EE Savings Bonds, the Series HH Savings Bond itself does not increase in value. Instead, every six months you receive an interest payment by direct deposit to your checking or savings account. When you redeem your Series HH Savings Bonds, you receive only their face value. For more on redeeming Series HH Savings Bonds, see "Cashing Series HH/H Savings Bonds."

You cannot buy Series HH Savings Bonds for cash. You can get them only in exchange for eligible Series E Savings Bonds, Series EE Savings Bonds and savings notes, or upon reinvestment of the proceeds of matured Series H Savings Bonds. A minimum of $500 redemption value in eligible savings bonds is required in order to make an exchange. There is no limit on the amount of Series HH Savings Bonds you can acquire in a calendar year.

If the value of the securities you are exchanging is not an exact multiple of $500, you may make up the difference with other funds. For example, if you are exchanging Series EE Savings Bonds valued at $900, you may add $100 in cash to buy a $1,000 Series HH Savings Bond or you may buy a $500 Series HH Savings Bond and receive the remaining $400. The money you receive may be subject to federal income tax reporting.

The interest rate on Series HH Savings Bonds is set first when you buy them and then at 10 years from the issue date.

Series HH Savings Bonds reach final maturity and stop earning interest 20 years from their issue date. Any interest from other savings bonds that you exchanged to buy your Series HH Savings Bonds must be included as taxable income on your federal income tax return for the year in which your Series HH Savings Bonds reach final maturity. You may either redeem your matured Series HH Savings Bonds or reinvest the proceeds in new Series HH Savings Bonds.

Series HH Savings Bonds come in four denominations: $500, $1,000, $5,000, and $10,000.

For more information about Series HH Savings Bonds, see "For HH/H Savings Bond Investors" and "Frequently Asked Questions about Series HH/H Savings Bonds."

The only reason I see (based on my brief review of this stuff) for trading in H/HH bonds:


Series E savings bonds continue to reach final maturity and stop earning interest. Bonds issued from May 1941 through October 1963 along with those issued from December 1965 through October 1973, have stopped earning interest. All Savings Notes, issued from May 1967 through October 1970, have stopped earning interest. Series E Bonds with issue dates shown here will reach final maturity in the next six months.

E-Bonds Issued Stop Earning Interest
November 1963 through April 1964 November 2003 through April 2004
November 1973 through April 1974 November 2003 through April 2004


Information about savings bonds is available at Public Debt's website at Check out our Savings Bond Calculator to see how easy it is to find out what your bonds are worth, what they're earning, and even keep track of them. Or, download the free Savings Bond WizardTM to keep track of your savings bond portfolio. The table on the back of this release shows actual yields for Series EE bonds. An Earnings Report, which contains rate and yield information for bonds is available by mail. Send a postcard asking for "Earnings Report" to Bureau of the Public Debt, 200 Third Street, Parkersburg, WV 26106-1328.

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