The purchase price is one-half the denomination. They may be purchased at most commercial banks, many savings institutions and through the payroll savings plan offered by thousands of employers. HH Bonds are issued and redeemed at face value, with interest paid semi-annually by electronic funds transfer from the Treasury Department. Interim market-based rates, are announced each May 1 and Nov. 1. Bonds held less than five years earn interest on a fixed, graduated scale.
Minimum rates vary according to the issue dates of individual bonds.
An EE Bond reaches face value no later than the end of the term at which it was issued. This term is based on the minimum rate in effect when the bond is issued. If the market-based rate applying to the bond is higher than the minimum, it reaches face value sooner. In either case, the bond continues to earn interest for its full term. Such bonds should be redeemed or, in the case of Series E or EE Bonds or Savings Notes, exchanged for Series HH Bonds at final maturity or soon thereafter.