August Final Month for HH Exchanges

FOR IMMEDIATE RELEASE

July 29, 2004

August 2004 is the final month in which owners of eligible Series E and EE Savings Bonds can exchange or reinvest their bonds for current-income Series HH Savings Bonds. HH bonds pay interest income semiannually to owners for up to 20 years from issue date at a flat rate that is currently set at 1.5%. The value of bonds exchanged must total at least $500; there is no maximum. HH bonds are available in denominations of $500, $1,000, $5,000 and $10,000. Any Series E or EE bond that is eligible for payment and less than one year past its final maturity date can be included as part of an exchange transaction.

The Treasury announced on February 18, 2004, that the Series HH offering would end on August 31, 2004. The series is being withdrawn due to the high cost of exchanges in relation to the relatively small volume of transactions.

Owners of Series E or EE bonds wanting to complete an exchange prior to the withdrawal date must complete a Form PD F 3253, "Exchange Application for U.S. Savings Bonds of Series HH," and submit it with the bonds being exchanged to a qualified savings bond agent. The form must be fully completed, signed and certified by a qualified agent for forwarding to a savings bond processing site (the Federal Reserve Banks of Buffalo, Pittsburgh, Richmond, Minneapolis or Kansas City) by close of business on August 31. Financial institutions that serve as agents generally are able to help customers fill out the application form and forward appropriate materials to a processing site or the Bureau of the Public Debt. Owners sending the bonds and completed paperwork to a processing site themselves should allow at least five business days for their application to reach the site.

More information about Series HH bonds can be found here.