They were available in exchange for.
1) On the paper savings bonds, specifically EE series bonds, the face value of a bond is not the amount of money originally invested in the bond but, the value of the bond at maturity.
Savings bond interest income should be reported as ordinary income on a tax return in the year the bond is redeemed or reaches final maturity, whichever occurs first.Interest rates on these bonds are calculated two cliffordfun adult dating different ways.Since March 1993, the Treasury has set the guaranteed rate for Savings Bonds entering new maturity periods.00.If the first method is best, the bond will earn whatever rate is required to make its women over 70 looking for men value reach the guaranteed rates in effect during its life.All of the Savings Bonds in this group have already doubled in value except for those issued in March 1993 and later.(For Savings Bonds issued in May 1997 and later, the redemption value increases monthly.) This creates a hidden redemption penalty of lost interest if you dont redeem right after the redemption value increases.Interest is paid semi-annually beginning six months from the issue date.You might consider consulting a competent fee-based financial advisor (avoid advisors who dont charge fees they get paid by earning commissions on products that may not be best for you).Savings Bonds are an excellent choice for the low risk portion of an investment portfolio.Regardless if interest earned was (previously) reported annually, upon redemption, a 1099-INT will be issued for ALL of the interest earned since the bonds issuance.Savings Bonds in this group that were issued in June 2003 and later are guaranteed to double in value in 20 years (this is an implied interest rate.50 for those issued in May 2003 and earlier the guarantee is 17 years (4.12).If the second method is best, the bond will earn whatever rate is required to make its value reach the average of the market-based rates published during its life.The bonds guaranteed rate during this first period is the rate that will accomplish this doubling in value.