Series HH Bond

Series HH Bond U.S. Government Bond Savings Bonds Series E Bonds Series EE Bonds Investment
U.S. government bond that was available in denominations ranging from $500 to $10,000, primarily issued in exchange for Series E or EE bonds. The last issue date was August 31, 2004.
On this page

Definition of Series HH Bond

Series HH Bonds were U.S. government-issued savings bonds introduced as a non-marketable and non-transferrable security. The primary purpose of these bonds was to provide a re-investment option for holders of Series E or EE bonds. Unlike their predecessors, Series HH bonds provided semi-annual interest payments, making them an attractive option for individuals seeking regular income. The last issue date for Series HH bonds was August 31, 2004, after which the U.S. government discontinued the exchange for HH/H bonds. However, this cessation does not affect existing holders, who still receive interest payments until maturity or redemption of the bond.

Examples of Series HH Bond Use

  1. For Regular Income: Amy had matured Series EE bonds valued at $2,000. To continue benefiting from her investment, she exchanged them for Series HH bonds. She now receives interest payments every six months.
  2. Estate Planning: John held substantial Series E bonds and exchanged them for HH bonds to secure a steady semi-annual interest payment, ensuring a predictable income stream for his beneficiaries.
  3. Reinvestment Strategy: After receiving a lump sum from matured Series E bonds, Sophia reinvested the amount into Series HH bonds to balance her portfolio with a guaranteed income source.

Frequently Asked Questions (FAQ)

When was the last issue date for Series HH bonds?

The last issue date for Series HH bonds was August 31, 2004.

Can I still buy Series HH bonds?

No, as of August 31, 2004, the U.S. government has discontinued the issuance and exchange of Series HH bonds.

Do current holders of Series HH bonds still receive interest payments?

Yes, current holders of Series HH bonds continue to receive semi-annual interest payments until the bonds mature or are redeemed.

What denominations were Series HH bonds available in?

Series HH bonds were available in denominations ranging from $500 to $10,000.

Can Series HH bonds be transferred?

No, Series HH bonds were non-marketable and non-transferable securities, meaning they could not be sold in secondary markets or transferred to another person.

  • Series E Bonds: A series of U.S. savings bonds issued between 1941 and 1980, intended to finance the U.S. government’s borrowing needs during World War II and post-war reconstruction.
  • Series EE Bonds: A series of U.S. savings bonds issued from 1980 onward, designed to offer a safe, fixed-income investment with a guarantee to double in value over a set period.
  • Non-Marketable Security: A financial instrument that cannot be sold or exchanged in the open market and can only be redeemed with the issuer.
  • Reinvestment: The process of using returns from an investment to purchase additional investments rather than receiving payments in cash.
  • Semi-Annual Interest Payments: Interest payments that are made twice a year to bondholders.

Online References

  1. U.S. Treasury - Series HH Savings Bonds
  2. Investopedia - Series HH Bonds
  3. Wikipedia - Series HH Bonds

Suggested Books for Further Studies

  1. “The Bond Book: Everything Investors Need to Know About Treasuries, Municipals, GNMAs, Corporates, Zeros, Bond Funds, Money Market Funds, and More” by Annette Thau
  2. “Bonds: An Introduction to the Core Concepts” by Mark Mobius
  3. “The Handbook of Fixed Income Securities” by Frank J. Fabozzi
  4. “Bond Investing For Dummies” by Russell Wild
  5. “Strategic Fixed Income Investing” by Sean P. Simko

Fundamentals of Series HH Bond: Finance Basics Quiz

### What purpose did Series HH bonds serve? - [x] They provided a reinvestment option for holders of Series E or EE bonds. - [ ] They were issued directly to the public for the first time. - [ ] They aimed to fund government infrastructure projects. - [ ] They were available as a part of a retirement savings plan. > **Explanation:** Series HH bonds were primarily issued as a non-marketable security to offer a reinvestment option for holders of Series E or EE bonds, providing them with semi-annual interest payments. ### When was the last issue date for Series HH bonds? - [ ] December 31, 2000 - [ ] January 1, 2005 - [x] August 31, 2004 - [ ] July 4, 2003 > **Explanation:** The U.S. government set August 31, 2004, as the last issue date for Series HH bonds. ### Can you still purchase Series HH bonds today? - [ ] Yes, but only in specific circumstances. - [ ] Yes, if you have Series EE bonds to exchange. - [x] No, they are no longer issued. - [ ] Yes, but only in denominations over $10,000. > **Explanation:** The issuance of Series HH bonds was discontinued after August 31, 2004, and they can no longer be purchased. ### In what denominations were Series HH bonds available? - [ ] $100 to $5,000 - [x] $500 to $10,000 - [ ] $1,000 to $50,000 - [ ] $250 to $20,000 > **Explanation:** Series HH bonds were available in denominations ranging from $500 to $10,000. ### Do current holders of Series HH bonds still receive interest payments? - [x] Yes, they continue to receive semi-annual interest payments. - [ ] No, all interest payments were terminated in 2004. - [ ] Yes, but only annually. - [ ] Interest is credited but not paid out. > **Explanation:** Holders of Series HH bonds continue to receive semi-annual interest payments until the bonds mature or are redeemed. ### What is a non-marketable security? - [ ] A security that can be easily transferred or sold. - [x] A financial instrument that cannot be sold or exchanged in the open market. - [ ] A type of investment that offers the highest yield. - [ ] A bond issued only by private corporations. > **Explanation:** Non-marketable securities, like Series HH bonds, cannot be sold or exchanged in the open market, and can only be redeemed with the issuer. ### What feature did Series HH bonds emphasize? - [ ] Immediate liquidity - [x] Regular semi-annual interest payments - [ ] High growth potential - [ ] Tax-free status > **Explanation:** Series HH bonds provided regular semi-annual interest payments to investors, ensuring a steady income stream. ### Who primarily held Series HH bonds? - [ ] Institutional investors - [ ] Foreign governments - [x] Individual investors and holders of Series E or EE bonds - [ ] Corporations > **Explanation:** Series HH bonds were primarily held by individual investors who exchanged their Series E or EE bonds for a regular income through semi-annual interest payments. ### How did Series HH bonds benefit estate planners? - [ ] By offering tax-free returns - [x] By providing predictable income streams for beneficiaries - [ ] By allowing immediate asset liquidation - [ ] By increasing the principal investment over time > **Explanation:** Series HH bonds benefited estate planners by offering steady semi-annual interest payments, ensuring predictable income streams for beneficiaries. ### What happened to Series HH bonds issued before 2004? - [x] They continue to exist and pay interest to current holders. - [ ] They are no longer valid. - [ ] They were converted into another bond type. - [ ] They matured and stopped paying interest. > **Explanation:** Series HH bonds issued before 2004 continue to pay interest to current holders until maturity or redemption.

Thank you for exploring the details and implications of Series HH bonds with us. Continue expanding your investment knowledge and financial literacy!

Wednesday, August 7, 2024
Series I Bond
Series EE Bond
Savings Bond January 1, 1
Government Securities January 1, 1
Series EE Bond January 1, 1

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.