Series HH Bond

U.S. government bond that was available in denominations ranging from $500 to $10,000, primarily issued in exchange for Series E or EE bonds. The last issue date was August 31, 2004.
On this page

Definition of Series HH Bond

Series HH Bonds were U.S. government-issued savings bonds introduced as a non-marketable and non-transferrable security. The primary purpose of these bonds was to provide a re-investment option for holders of Series E or EE bonds. Unlike their predecessors, Series HH bonds provided semi-annual interest payments, making them an attractive option for individuals seeking regular income. The last issue date for Series HH bonds was August 31, 2004, after which the U.S. government discontinued the exchange for HH/H bonds. However, this cessation does not affect existing holders, who still receive interest payments until maturity or redemption of the bond.

Examples of Series HH Bond Use

  1. For Regular Income: Amy had matured Series EE bonds valued at $2,000. To continue benefiting from her investment, she exchanged them for Series HH bonds. She now receives interest payments every six months.
  2. Estate Planning: John held substantial Series E bonds and exchanged them for HH bonds to secure a steady semi-annual interest payment, ensuring a predictable income stream for his beneficiaries.
  3. Reinvestment Strategy: After receiving a lump sum from matured Series E bonds, Sophia reinvested the amount into Series HH bonds to balance her portfolio with a guaranteed income source.

Frequently Asked Questions (FAQ)

When was the last issue date for Series HH bonds?

The last issue date for Series HH bonds was August 31, 2004.

Can I still buy Series HH bonds?

No, as of August 31, 2004, the U.S. government has discontinued the issuance and exchange of Series HH bonds.

Do current holders of Series HH bonds still receive interest payments?

Yes, current holders of Series HH bonds continue to receive semi-annual interest payments until the bonds mature or are redeemed.

What denominations were Series HH bonds available in?

Series HH bonds were available in denominations ranging from $500 to $10,000.

Can Series HH bonds be transferred?

No, Series HH bonds were non-marketable and non-transferable securities, meaning they could not be sold in secondary markets or transferred to another person.

  • Series E Bonds: A series of U.S. savings bonds issued between 1941 and 1980, intended to finance the U.S. government’s borrowing needs during World War II and post-war reconstruction.
  • Series EE Bonds: A series of U.S. savings bonds issued from 1980 onward, designed to offer a safe, fixed-income investment with a guarantee to double in value over a set period.
  • Non-Marketable Security: A financial instrument that cannot be sold or exchanged in the open market and can only be redeemed with the issuer.
  • Reinvestment: The process of using returns from an investment to purchase additional investments rather than receiving payments in cash.
  • Semi-Annual Interest Payments: Interest payments that are made twice a year to bondholders.

Online References

  1. U.S. Treasury - Series HH Savings Bonds
  2. Investopedia - Series HH Bonds
  3. Wikipedia - Series HH Bonds

Suggested Books for Further Studies

  1. “The Bond Book: Everything Investors Need to Know About Treasuries, Municipals, GNMAs, Corporates, Zeros, Bond Funds, Money Market Funds, and More” by Annette Thau
  2. “Bonds: An Introduction to the Core Concepts” by Mark Mobius
  3. “The Handbook of Fixed Income Securities” by Frank J. Fabozzi
  4. “Bond Investing For Dummies” by Russell Wild
  5. “Strategic Fixed Income Investing” by Sean P. Simko

Fundamentals of Series HH Bond: Finance Basics Quiz

Loading quiz…

Thank you for exploring the details and implications of Series HH bonds with us. Continue expanding your investment knowledge and financial literacy!

Series I Bond
Series EE Bond