After purchase, the holder must wait at least twelve months before cashing it in, when they will receive the capital plus some interest.
Rates on savings accounts, money market funds and government bonds remain at or below the rate of inflation.
E Bonds issued May 1941 - November 1965 earn interest for 40 years and were granted three 10-year extended maturity periods.
After your 24th birthday, you can set aside I-bond purchases for tax-free tuition for your child or legal dependent.In other words, you should wait to redeem education-designated I-bonds until you actually receive a tuition bill.August 31st, 2004 was the last issue date for HH/H Bonds.Changes to this rate always affect issued bonds, so bondholders can expect to see their composite rates shift twice per year.Image Result For Series E Savings Bonds Maturity Dates.If dream woman wanted may 2016 your bonds principal amount is 5,000, youll receive 5,000 plus interest when you sell out, regardless of what the bond market has done in the intervening period.
And again, you must purchase the applicable bonds after you turn.
A virtually unlimited purchasing cap may have its uses for savers who can afford to sock away more than 10,o00 per year.
Neither tool is available to holders of paper bonds, but individuals can purchase both electronic and paper I-bonds with federal tax refunds.
These securities are exempt from certain types of taxation.
Series I savings bonds present a unique opportunity for generally conservative savers who dont want to accept sub-inflation returns on their investments.EE-Bonds are fixed interest bonds guaranteed to double in value over 20 years.You must buy bonds worth at least 25 in a single purchase.An additional 5,000 can be purchased by using one's income tax refund on Form 1040.Disadvantages of Series I Savings Bonds.While you wont have the satisfaction of holding a valuable piece of paper, you also wont have to worry about losing your bond.If mature date net you fail to use an I-bonds funds for tuition during the calendar year in which you redeemed it, youll forfeit your tax benefits.
For conservative investors, the choice is clear: An inflation-protected, but still safe, bond like the Series I offers significant benefits over fixed-rate-only securities like 10-year T-bills.
"Bye-bye, paper savings bonds" (PDF).
The next day, they were made available to the public.