Series A, B, C, D, E, F, G, H, J, and K Savings Bonds and Savings Notes

Series A, B, C, and D

In March 1935, Treasury first offered the non-professional investor a savings type security with a schedule of fixed redemption values, redeemable at any time after a short initial holding period. It was issued only in registered form (and, therefore, non-negotiable), and could be replaced if destroyed or lost. These "baby bonds," as they were commonly called, were really the first savings bonds.

Issued in denominations from $25 to $1,000, they were sold at 75 percent of face value, and accrued interest at the rate of 2.9% per year, compounded semiannually when held for their ten-year maturity period. Their sale in post offices and the U.S. Treasurer's office was promoted only through direct mail and magazine advertising, instead of through the usual investment market channels.

Series A bonds were offered from March 1935 through the remainder of that year. Series B bonds were offered in 1936. Series C bonds were offered both in 1937 and again in 1938. Series D bonds were sold from the beginning of 1939 through April 1941.

The government borrowed a total of $3.9 billion through the issue of Series A through D savings bonds. Treasury will still make good whenever they are presented for redemption at any financial institution in the U.S. that cashes savings bonds. These bonds are worth face value when cashed. Interest on bonds issued March 1935 through February 1941 is not taxable.

Series E

Series E bonds were first issued in May 1941. They played a major role in financing World War II and continued as a stable method of debt financing. Series E bonds were withdrawn from sale as of June 30, 1980. They were replaced by Series EE bonds.

Series E bonds are accrual bonds which were issued at 75 percent of face amount. Series E bonds were issued in denominations of $10, $25, $50, $75, $100, $200, $500, $1,000, $10,000, and $100,000. (Note: Eligibility to buy the $10 and $100,000 Series E bonds was limited.) Interest is paid at redemption as part of the current redemption value. Series E bonds may be redeemed by many financial institutions and by Federal Reserve Banks. To find out what Series E bonds are worth, try our online Savings Bond Calculator.

Series E interest is reportable for Federal income tax purposes for the year in which the Series E bonds are redeemed, reach final maturity, or are otherwise disposed of, whichever occurs earliest; alternatively, a bond owner may elect to report Series E interest as it accrues. Prior to final maturity, as well as for one year from the month in which they reach final maturity, Series E bonds (along with Series EE bonds and savings notes) may be exchanged for Series HH bonds with continued tax deferral on accrued Series E interest included in the purchase price (face or par amount) of the Series HH bonds.

Series E bonds have had varying original maturity periods depending on their issue dates, ranging from 10 years for the oldest bonds to 5 years for the last ones issued. Series E bonds issued from May 1941 to November 1965 have been granted three 10-year extended maturity periods. Those issued after November 1965 have been granted two 10-year extended maturity periods. Series E bonds issued from May 1952 through November 1965 have been granted an additional extension sufficient in length to make their total interest-accruing life spans 40 years. Those issued in December 1965 and after have been granted an additional extension sufficient to make their total interest-accruing life spans 30 years.

Series F and G

With the birth of the E bond in 1941, Treasury also offered two other series--Series F and G. F and G bonds were offered to all investors (except banks), not just individuals.

F and G bonds were different in other respects as well. The F bond was bought at 74 percent (rather than 75%) of its face value, increasing gradually in value to its full maturity at 12 years after issue. The G bond was purchased at face value and paid interest by Treasury check every six months.

Both F and G bonds had a maturity period of 12 years. When held to maturity, the F bond had a return of 2.53 percent interest and the G bond paid interest at the rate of 2.5 percent per year. The return on the F bond gradually increased, but since interest paid on G bonds was the same amount every six months, these bonds were subject to an interest adjustment if redeemed prior to maturity. Both series of bonds could be redeemed after the bonds were six months old upon one month's written notice.

The F bond was offered in denominations of $25, $100, $500, $1,000, $5,000, and $10,000. The G bond was issued in denominations of $100, $500, $1,000, $5,000, and $10,000. F and G bonds could be bought only from offices of the Federal Reserve Banks and/or Treasury. However, many local financial institutions accepted and forwarded purchase applications. When first offered, these two bond series had an annual purchase limit of $50,000, but this was soon raised to $100,000 and was further raised temporarily for brief special offerings to certain institutional investors.

F and G bonds may be redeemed by a Federal Reserve Bank and are worth face value.

Series H

Series H bonds were first offered on June 1, 1952, as a companion series for investors who preferred to receive current income. Series H bonds were withdrawn from sale as of December 31, 1979. They were replaced by Series HH bonds.

Series H bonds are current income bonds, issued at par. Interest is paid semiannually; Series H interest is taxable for the year in which it is received. Series H bonds were issued in denominations of $500, $1,000, $5,000, and $10,000. Series H bonds may be redeemed by Federal Reserve Banks and are worth face value.

Series H bonds issued from June 1952 to January 1957 had an original maturity period of 9 years, 8 months. Those issued from February 1957 to December 1979 had a 10-year original maturity period. All Series H bonds have been granted two 10-year extended maturity periods.

Series J and K

In May 1952, the F and G bond offerings were replaced by Series J and K offerings. The two new series offered a higher rate of return--2.76 percent when held to maturity. Also, the annual purchase limit was set at $200,000.

Series J bonds--similar to F bonds--matured in 12 years after issue. The denominations were the same except that a $100,000 denomination was added for J bonds. The purchase price for J bonds was, however, only 72 percent of face value.

Series K bonds were successors to G bonds. K bonds were current income bonds that paid interest by Treasury check every six months. K bonds redeemed prior to maturity were subject to interest adjustment, as had been the case for G bonds.

As with F and G bonds, J and K bonds were purchased by sending purchase applications to offices of Federal Reserve Banks and the Treasury. Also, J and K bond interest, like interest on all other series of savings bonds issued March 1941 and later, was subject to Federal income taxes but not to state and local income taxes.

The J and K bond offerings were discontinued at the end of April 1957. Starting in January 1960, up until a year following maturity, F and J bonds could be exchanged for current income Series H bonds.

Series J and K bonds may be redeemed at a Federal Reserve Bank and are worth face value.

Savings Notes (Freedom Shares)

In 1967, Treasury began one of the most intensive sales campaigns for savings securities since the Second World War. Savings Notes, sometimes called "Freedom Shares," were offered with a return of 4.74% when held to maturity of 4 years and six months. These notes could be purchased only in combination with Series E bonds of the same or greater denominations.

This offering was effective from May 1, 1967, until close of business October 31, 1970. Notes were offered in four denominations: $25, $50, $75, and $100. Their issue price was 81% of their face value--$20.25, $40.50, $60.75, and $81.00. When bought through issuing agents over-the-counter, note purchases could not exceed $350 (face amount) per quarter, and the annual limit was $1,350 (face amount).

Treasury discontinued the sale of "Freedom Shares" largely because notes were never immensely popular and financing the savings security portion of the debt could be accomplished satisfactorily through E and H bonds.