The U.S. Treasury stopped issuing new Series HH Bonds as of September 1, 2004.
Since 1982, Series HH bonds have been available only through the exchange of Series E/EE bonds (no more than one year past their final maturity date) or reinvestment of matured Series H/HH bonds.
New-issue Series HH bonds have a 20-year maturity. Series H bonds, issued prior to 1980, had a 30-year final maturity. Interest is paid every 6 months. The interest rate is held fixed for 10 years and is then reset for each remaining 10-year period through maturity. The current rate is 1.5% for bonds issued/reset on or after January 1, 2003. The rate prior to 1/1/2003 was 4%.
Many folks typically exchange matured Series E/EE for Series HH bonds (or reinvest matured Series H/HH bonds) to defer payment of income taxes on accrued interest earned by the original Series E/EE holdings. That is no longer possible.
If you currently have Series H/HH bonds, they will remain in force through final maturity unless you wish to cash them in sooner.
For further information, please contact James Terwilliger, VP, CERTIFIED FINANCIAL PLANNER™, 585-419-0670 ext 50630 or email firstname.lastname@example.org.