Series HH savings bonds are current-income securities. This means that, unlike the EE bond, the HH bond itself doesn’t increase in value. When an HH bond is issued, you pay the face amount for the HH bond and interest is paid each six months, providing you with “current income.” The interest payments on HH bonds are made by direct deposit to your checking or savings account at a financial institution.
The Series HH savings bond was discontinued on September 1st, 2004. Prior to this, Series EE savings bond investors could exchange their savings bonds for Series HH savings bonds. The new HH bonds, unlike the old EE bonds, would pay out interest twice a year by making a direct deposit into the bank account of the bond holder. Series HH bonds never actually increased in value, instead distribut…
Great what-you-need-to-know article explaining the process of swapping your savings bonds for HH bonds. Written by Kimberly Lankford for Kiplinger.com.
Information about HH bonds from the Securities and Exchange Commission. Includes several links for more information.
