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As the owner, co-owner, surviving beneficiary, or person entitled to Series EE/E bonds, you can exchange these securities for Series HH bonds using an exchange application form (
Form PD F 3253). The HH bonds will be dated as of the first day of the month in which an authorized agency accepts the exchange application and redeems the securities presented for exchange. Eligible Securities
The Series EE/E bonds to be exchanged:
Series HH bonds are available in multiples of $500. If the redemption value of bonds being exchanged isn�t an even multiple of $500, you have the option of adding cash to the transaction or receiving cash so that a multiple of $500 is reached. For example, if you have Series EE/E bonds and/or notes with a redemption value of $1,720 that you're exchanging, you can either add $280 in cash and receive $2,000 worth of HH bonds or you can receive $220 in cash and $1,500 in HH bonds. NOTE: No more than $499.99 may be added to or received in cash from a bond�s value in an exchange transaction. Reporting Interest If you�ve deferred (postponed) reporting interest on your EE/E bonds as they increased in value, you may continue to defer reporting this accrued interest. Reporting can continue to be deferred until the Series HH bonds you receive in exchange are cashed, stop earning interest in 20 years, or are reissued in a reportable event. The amount of the tax-deferred interest included in the value of each HH bond is shown on the front of each bond. When you cash your HH bonds, when they mature, or are reissued in a reportable event, you�ll need to include this interest on your federal income tax return for that year. If you choose to receive some cash (see �Amount of the Exchange�) as part of the exchange transaction, you�ll be reducing the amount of interest on which you can continue to defer taxes. Some or all of the cash payment you receive will be considered accrued interest, which you must report as income on your federal income tax return for the year the exchange was processed. For example, assume you're exchanging $1,700 in EE/E bonds for $1,500 in HH bonds and $200 in cash. Also assume that these bonds have earned $275 in interest that you haven�t yet reported on your taxes. In this exchange, the entire $200 in cash you receive is considered interest which must be reported on your federal tax return in the year of the exchange. Taxes on the remaining $75 in interest is deferred and each $500 portion of the HH bonds will be considered to �include� $25 in deferred interest. To continue to defer reporting the entire $275 in interest on your taxes, you�d have to add $300 in cash to the transaction and purchase $2,000 of HH bonds. Where Do I Exchange My Bonds?
Although financial institutions that process savings bonds can�t issue
Series HH bonds, they can:
If you�d like to send the exchange transaction directly to a
Federal Reserve Bank:
See also:
HH/H Interest Payment Dates and Rates and Final
Maturity Dates
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| Series EE/E | Series I |