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Your Bank > Education and Advice > CNB University

Series HH Savings Bonds

 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 jterwilliger@cnbank.com.