Savings Bond fact sheet available

Tuesday, March 15th, 2005
Categorized as: Savings Bond FAQ

Tell me about saving bonds.

Tom’s response

Don’t get me started.

Check out my Savings Bond fact sheet. If you have more questions after reading that, let me know.

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FDIC Insured Certificates of Deposit can pay 1 or 2% more than savings bonds when held for a similar length of time. See top CD Rates Below:


On June 15th, 2009 Jay said:

If a series EE savings bond earns intrest for 30 years until maturity, can the total value after 30 years be worth more than face value?

On June 15th, 2009 Tom Adams said:

Jay – not only can EE bonds be worth more, they always are worth more than face value after 30 years.

Tom Adams

On August 4th, 2009 Pam Banke said:

I have a customer who has a bunch of Series EE bonds. Years ago she redeemed some other EE bonds and transferred them into HH bonds and didn’t have to pay any taxes on the interest earned. Is that still possible?

On August 5th, 2009 Tom Adams said:

Pam – HH bonds were discontinued in 2004, so it is no longer possible to extend the Savings Bond tax deferment past the final interest payment date of any type of Savings Bond.

Tom Adams

On September 5th, 2009 Dianne Murer said:

Mom has several EE Bonds 30 yrs old starting next year. If we cash them in all at once – what is the best way to handle the tax repercussion on the interest that was earned? Can she give those to children and grandchildren up to the amount of gift tax without tax consequences? Thanks and make it a great day

On September 7th, 2009 Tom Adams said:

Dianne – If the bonds will stop earning interest over several years, the best way to handle the tax is not to cash them all in at once, but to cash them as they stop earning interest. This allows you to spread the income out over several tax years.

It is also possible to add children or grandchildren as co-owners and then let them cash the bonds. The kids will get the 1099-INT tax forms. However, the IRS says it’s still your mother, as principal owner, who owes the taxes.

Tom Adams

Comments Closed

June 1, 2010

After six years, over 400 posts, 3,680 real comments, and over 90,000 spam comments (thank you, Akismet, for making managing a blog with comments possible), I am closing public comments on I will contine to update the main articles on this site, but not the comments.

Virtually every question about Savings Bonds has been asked and answered on this site multiple times. Use the search feature (see the box in the gray area near the top of this page) or the detailed menu on the lower part of the home page to find the information you're looking for. If you have a copy of Savings Bond Advisor, you can ask me a question here.

Tom Adams

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