Transfers between Savings Bond series
Friday, August 5th, 2005
Categorized as: Yesterday's News (old post archive)
I assume it’s possible to transfer Series EE Savings Bonds to either Series I bonds or Treasury securities. If so, is it possible to avoid taxes on the accrued interest by doing that transaction?
Actually, there’s no direct method of making a transfer like this. All you can do is redeem one and purchase the other. Interest income is taxable in the year you make the redemption.