Community Forex Questions
What is the difference between a Series HH Savings Bond and a Series EE Savings Bond?
Series HH Savings Bonds and Series EE Savings Bonds are both types of U.S. government-issued savings bonds designed to help individuals save money over time, but they have distinct differences in terms of their features and availability.
1. Interest Payment Method:
Series HH Bonds: These bonds are no longer available for purchase, as they were discontinued in 2004. They provided semi-annual interest payments at a fixed rate for up to 20 years.
Series EE Bonds: Series EE Bonds, on the other hand, are currently available and continue to accrue interest for up to 30 years. Instead of receiving regular interest payments, their interest is compounded and added to the bond's face value.
2. Purchase Limit:
Series HH Bonds: The purchase limit for Series HH Bonds was $10,000 annually per Social Security Number. They were primarily purchased by individuals who held Series E or Series EE Bonds that had matured.
Series EE Bonds: Individuals can purchase up to $10,000 worth of Series EE Bonds per calendar year in electronic form, and they are also available in paper form through tax refunds.
3. Availability:
Series HH Bonds: These bonds are no longer available for purchase but are still held by some individuals who bought them before the discontinuation.
Series EE Bonds: Series EE Bonds are still available and can be bought online through the TreasuryDirect website or as paper bonds using a portion of a tax refund.
4. Interest Rates:
Series HH Bonds: The interest rate for Series HH Bonds was fixed for the duration of the bond's life, which could be up to 20 years.
Series EE Bonds: The interest rate for Series EE Bonds is variable, as it is based on a combination of a fixed rate set at the time of purchase and a variable inflation component.
Series HH Savings Bonds are no longer available for purchase and provide fixed semi-annual interest payments, while Series EE Savings Bonds are currently available, accrue interest over a longer period, and have variable interest rates based on inflation. Understanding these differences can help individuals make informed decisions about their savings and investment goals.
1. Interest Payment Method:
Series HH Bonds: These bonds are no longer available for purchase, as they were discontinued in 2004. They provided semi-annual interest payments at a fixed rate for up to 20 years.
Series EE Bonds: Series EE Bonds, on the other hand, are currently available and continue to accrue interest for up to 30 years. Instead of receiving regular interest payments, their interest is compounded and added to the bond's face value.
2. Purchase Limit:
Series HH Bonds: The purchase limit for Series HH Bonds was $10,000 annually per Social Security Number. They were primarily purchased by individuals who held Series E or Series EE Bonds that had matured.
Series EE Bonds: Individuals can purchase up to $10,000 worth of Series EE Bonds per calendar year in electronic form, and they are also available in paper form through tax refunds.
3. Availability:
Series HH Bonds: These bonds are no longer available for purchase but are still held by some individuals who bought them before the discontinuation.
Series EE Bonds: Series EE Bonds are still available and can be bought online through the TreasuryDirect website or as paper bonds using a portion of a tax refund.
4. Interest Rates:
Series HH Bonds: The interest rate for Series HH Bonds was fixed for the duration of the bond's life, which could be up to 20 years.
Series EE Bonds: The interest rate for Series EE Bonds is variable, as it is based on a combination of a fixed rate set at the time of purchase and a variable inflation component.
Series HH Savings Bonds are no longer available for purchase and provide fixed semi-annual interest payments, while Series EE Savings Bonds are currently available, accrue interest over a longer period, and have variable interest rates based on inflation. Understanding these differences can help individuals make informed decisions about their savings and investment goals.
Oct 03, 2023 08:52