Q&A about the Series HH Savings Bond Program

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1. Why is Treasury going to stop issuing Series HH Savings Bonds?

Funds invested in Series HH bonds do not represent a significant portion of all the funds invested in savings bonds, but do result in a substantial administrative expense for handling exchanges. As it moves toward a paperless savings bond program, Treasury decided to stop issuing Series HH bonds, rather than develop a paperless version.

2. What is the last day my local bank, Savings Bonds Processing Site (SBPS), or Public Debt will accept an application for exchanging EE or E bonds for HH bonds?

PD F 3253, Exchange Application for US Savings Bonds of Series HH, must be fully completed, properly signed and certified by a qualified savings bonds agent for forwarding to a Savings Bonds processing site (the Federal Reserve Banks of Buffalo, Pittsburgh, Richmond, Minneapolis or Kansas City) by close of business on August 31, 2004. Many financial institutions serving as savings bonds agents will assist their customers by forwarding the completed application and associated documents to a processing site. If you choose to (or have to) send in the bonds and paperwork to a SBPS yourself, you should allow at least five business days for the transaction to reach the site. More information about exchanges can be found at www.treasurydirect.gov.

3. Will the requirement that EE bonds be held for at least one year be waived to allow for an exchange before the HH withdrawal date?

No. Series EE bonds issued on or after February 1, 2003, must be held for at least twelve months before redemption or exchange.

4. What is the last day a SBPS or Public Debt will accept a request to reinvest matured HH/H bonds for HH bonds?

A Reinvestment Notice or properly certified PD F 1993, Reinvestment Application, must be fully completed and received by close of business on August 31, 2004. All savings bonds being reinvested must be submitted with the notice or application.

5. After the HH offering is withdrawn, what is the impact on investors who currently hold HH/H bonds?

There is no impact on owners of HH/H bonds that have not reached final maturity. When the HH offering is withdrawn at the close of business on August 31, 2004, owners of EE and E bonds will no longer be able to exchange them for HH bonds, and owners of matured HH/H bonds will no longer be able to reinvest their holdings in HH bonds.

6. What happens if an investor needs to have HH/H bonds reissued or loses bonds?

Owners of HH/H bonds that have not reached final maturity will continue to receive the same support services they now do until bonds are redeemed or reach final maturity. These services include reissue and replacement of lost bonds.

7. How are Series HH bonds obtained?

Series HH bonds were issued beginning January 1980. The bonds could be purchased for cash or exchange of Series E/EE and/or Savings Notes through October 31, 1982. Beginning November 1, 1982, Series HH bonds were acquired only through the exchange of Series E/EE and/or Savings Notes. Beginning February 1, 1982, Series HH bonds were offered through the reinvestment of matured Series H bonds. All Savings Notes are more than one year past their final maturity dates and are no longer eligible for exchange.

Series E and EE bonds being exchanged must have a total current redemption value at the time of the exchange of at least $500, the smallest HH denomination. Purchasers of HH bonds who submit bonds for exchange with values totaling more than an even $500 multiple may add cash to the transaction to reach the next multiple or take cash from the transaction to reach the next-lower $500 multiple (tax consequences may apply). There is no maximum to the number or value of E or EE bonds that may be exchanged at one time. To be eligible for exchange, E bonds must be no more than one year past their final maturity date.

Source: The Bureau of the Public Debt’s Securities Operations Office