To understand what a HH Savings bond is, you must understand the whole network of government securities issued as a whole. Like all US savings bonds, HH Savings bonds are considered a non-marketable Treasury security. In general, they are government bonds issued by the US Department of the Treasury through the Bureau of Public Debt and they help finance the US debt – while providing investors a rate of return.
There are two categories of government securities:
1. Marketable treasury securities which are very liquid and heavily traded on the secondary market – including:
- Treasury bills (T-bills)
- Treasury notes
- Treasury bonds
- Treasury Inflation Protected Securities (TIPS)
2. Non-marketable treasury securities – this category includes:
- State and Local Government Series (SLGS)
- Government Account Series debt issued to government-managed trust funds
- Savings bonds which also includes HH Savings bonds are issued directly to subscribers and cannot be traded or transferred through market sales.
As of September 1, 2004 the U.S. Treasury was no longer issuing HH Savings bonds. Originally the HH Savings Bond series were sold at a discount and matured at face value or could have been redeemed in exchange for EE/E bonds. Although the HH Savings bonds are no longer being issued, there are still many in existence that have yet to mature.
If you are interested in redeeming your HH Savings bonds, the first step is going to your local bank. Your local bank cannot cash out your bonds, however, they can certify the bond or guarantee your signature. They can also help get the payment of the bonds forwarded by direct deposit into your account. Additionally, the bank can help with holding instructions and verify any supporting evidence of entitlement (if applicable) to the Treasury Retail Securities site that services your area.