Savings Bonds

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Safety
Savings bonds are a unique security as safe and secure as the U.S. Treasury. You never have to worry about the safety of your investment. You are paid the principal and interest due you when you cash your bond. Your bonds can be replaced if they are lost, stolen or destroyed.

Ease of Purchase
All you need to do is decide how often to buy a bond. HAPO offers a bond a month program as a convenient way to save with your earnings being tax-deferred until the bonds are redeemed, reach final maturity or the bonds are exchanged for series HH bonds. Members can have the purchase of the bonds deducted from their account on the 10th of each month and the bonds are sent directly to you!

Tax Advantages
The interest you earn on your series EE bonds is exempt from State and local income taxes. You can defer federal income tax until you redeem the bonds or they stop earning interest after 30 years. This means you can plan ahead and choose when might be the best time to realize income for tax purposes. And, since your interest isn't taxed until you redeem a bond, your savings grow faster because interest compounds on the full value of the bonds before taxes.

Financing Education
Savings bonds can help! You save for your children's education. There are special tax benefits available to lower and middle income investors. If you qualify, you can exclude all or part of the interest earned on Series EE bonds from income then the bonds are redeemed to pay for post-secondary tuition and fees.

Liquidity
You may cash Series EE bonds after one year. You will lose 90 days of interest as a penalty if the bond is less than five years old.

Visit the Internet site for the Bureau of Public Debt for more information about the new rates and other savings bond benefits. They have software that not only keeps track of your bonds, but values your whole portfolio.

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