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1.
The tax advantages of Series EE and Series I bonds include all of the following except _______.
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No federal tax on earnings. Unless the bonds are owned by your child or special exclusions for educational expenses apply, you must pay federal taxes on the earnings of your Series EE and Series I bonds. You do not need to pay state or local taxes, however.
2.
The US government established savings bonds to _______.
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Pay for expenses related to World War II. The US government began issuing savings bonds in 1941, using movies, posters, and other media to publicize the effort.
3.
If you redeem a Series EE savings bond that you have held for less than five years, _______.
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You will be penalized with the loss of three months' interest. This is the current penalty.
4.
You can replace a lost savings bond by sending the appropriate form to _______.
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The US Bureau of Public Debt. If you lose a savings bond, you can request Form PDF 1048 from a participating bank, credit union, or Federal Reserve bank, complete it, and return it to the Division of Transactions and Rulings of the US Bureau of Public Debt.
5.
Series EE bonds, series HH bonds, and series I bonds all offer _______.
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A relatively safe investment. Savings bonds are backed by the US government and can provide a relatively safe instrument that helps provide stability to your investment portfolio.
6.
A friend mentions that his savings bonds are based on the rate of Treasury securities. Your friend owns _______.
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Series EE bonds. Series EE bonds pay 90 percent of the six-month average yield on five-year Treasury securities.