Ask Kim
How to Swap Your Savings Bonds
How can I convert my EE bonds to HH bonds?
By Kimberly Lankford, Contributing Editor, Kiplinger's Personal Finance
June 7, 2002
I would like to convert my EE bonds to HH bonds, but my bank told me it won't process the transaction. How would I go about doing this?
First, go to the Bureau of the Public Debt's Savings Bonds Web site for instructions on exchanging the bonds and to get an exchange form.
Banks that deal with savings bonds can't issue HH bonds, but they should be able to help you with the paperwork and send it to a Federal Reserve Bank. You can also deal directly with your nearest Federal Reserve Bank, but you'll still need to sign the bonds at a financial institution that can provide a signature guarantee.
You can only make the switch if the EE bonds are at least six months old, haven't been matured for longer than a year and are worth at least $500. HH bonds are issued in multiples of $500, so you'll need to add more cash if your EE bonds aren't.
EE bonds credit interest monthly but don't pay out any money until you cash them in; HH bonds pay out interest twice each year. You can continue to defer taxes on your EE bond interest until you cash in the HH bonds (or until they stop earning interest in 20 years). For more information about the two types of savings bonds, see our Bond Tutorial.