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∙ 16y agoThe interest earned on your savings bonds is subject to federal income tax, which can be deferred until redemption, final maturity, or other taxable disposition, whichever occurs first. Savings bonds are subject to estate, inheritance, gift, or other excise taxes, whether federal or state. (Basically, that will be the difference between your purcahse price and the redemption amount. You will receive a 1099-INT for this).
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∙ 16y agoUpon maturity the Series EE savings bond stops paying interest which brings up an interesting option for holders of matured savings bonds. Since the banks are paying close to zero on savings there is really no financial penalty for holding the Series EE bonds past the maturity date. In addition, federal tax on the interest earned on the savings bonds are not due until the bonds are actually cashed in which gives the holder the flexibility of shifting income to a particular year. For someone nearing retirement and holding Series EE bonds which have matured it would probably make sense to hold off on cashing in the bonds until retirement when the bond holder would probably have lower income and thus a lower tax rate.
Patriot Bonds are Series EE savings bonds, which are specially inscribed with the words "Patriot Bond." The Patriot Bond series will begin December 11, 2001. Bonds increase in value every month, and interest is compounded semiannually. You can cash your bond after six months. Bonds cashed before they are five years old are subject to a 3-month interest penalty.
Five years. Armed Forces Leave Bonds matured five years after the date of issue and ceased earning interest at that time. While they initially had to be held to maturity, the law was changed in 1947 to allow them to be cashed prior to maturity. There is a collector market for these items. There may be greater collector value than redemption value.
The current interest rates of US Saving Bonds are 0.2 percent for Series EE Bonds. Series I Bonds have interest rate of 1.18 percent. Series HH Bonds have interest rate of 1.5 percent.
Once it has been distributed, no.
The two types of savings bonds are Series EE and Series I. Series EE bonds are purchased at face value and accrue interest over time, while Series I bonds earn interest based on a combination of a fixed rate and an inflation rate.
According to my calculations the answer is 8.137%.
The value of a Series E 1943 War bond today would depend on several factors, including its denomination, interest rate, and whether it has matured. Generally, Series E War bonds had a face value of $25, $50, $100, or $1,000. They were designed to mature after 10 years but could continue earning interest for up to 40 years.
Adjusted for inflation, $1 of bonds then is worth $11 now.
I bonds have an interest rate that adjusts with the inflation rate. This means you won't lose out over time because your buck was worth more (spent per dollar) when the bond was purchased than it is when it's cashed out. You can find out about Canadian savings bonds from the government of Canada at csb.gc.ca/home/ It says that bonds are available in compound interest which, I am unsure, but I take to believe is similar to I bonds.
The deferred interest on HH bonds refers to the interest that accumulates annually on the bond but isn't paid out to the bondholder until the bond is redeemed or reaches final maturity. This accumulated interest is considered to be tax-deferred as it is not paid out until later, typically when the bond is cashed in.
US war bonds were registered securities and could only be cashed by the registered holder (the person whose name is on the bond) or their heirs if the registered owner is dead.