Information About E Series US Savings Bonds
Series E U.S. savings bond became the patriotic way to save money and help fund the country's war effort in the 1940s. This savings bond program was successful for 60 years.
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History
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The Series E savings bonds were introduced in 1941. While similar to its predecessors (Series A through D), the bond was widely promoted through volunteer efforts by banks, community leaders, media, business executives and Hollywood entertainers.
War Bonds
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Due to heavy defense expenditures as a result of the U.S. entry into World War II, the Series E bond was first known as the "Defense Bond." During 1942-45, people referred to them as "War Bonds." They became known as Series E at the conclusion of World War II.
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Denominations
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Denomination of Series E bonds ranged from $25.00 to $10,000.00. These bonds were purchased at 75 percent of their face value. A $100 bond was purchased for
$75.
Maturity
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Series E bonds originally had a 10-year fixed term; however, extensions increased their interest-bearing capacity to either 30 or 40 years. Bonds issued between May 1941 and November 1965 earned interest for 40 years. They were granted three 10-year extensions. Bonds issued from December 1965 until June 1980 earned interest for 30 years with two 10-year extensions granted. Any Series E bond stops earning interest in 2010.
Income Tax
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You are required to claim interest as income the year in which the bonds are redeemed or reach final maturity whichever happens first. According to the IRS, some or all of the interest may be tax deductible if you use it to "pay for qualified higher education for yourself, spouse or a dependent."
Redemption
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Series E savings bonds can be redeemed at any financial institution. Use the interest rate calculator in the Resource Section below to determine you bond's redemption value. Series EE savings bond replaced the Series E bond in 1980.
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