CFR 2021 Title31 Vol2 Part351

§ 348.1 31 CFR Ch.
II (7–1–20 Edition)
performed on behalf of the Department tifies in writing, to the Treasury, Fi-

of the Treasury. The financial agents nancial Management Service, Wash-
will be compensated from the interest ington, DC, that it declines automatic
earned on the securities. This offering reinvestment within seven calendar
will continue until terminated by the days prior to maturity date.
Secretary. The Fiscal Assistant Sec-
retary is authorized to act on behalf of § 348.3 Reservations.
the Secretary upon all matters con- The Secretary reserves the right to
tained in these regulations. reject any application for the purchase
of securities hereunder, in whole or in
§ 348.1 Description of securities. part, and to refuse to issue or permit to
(a) General. The securities will be be issued any such securities in any
issued in book-entry form on the books case if the Secretary deems such action
of the Department of the Treasury, Bu- to be in the public interest, and the
reau of the Fiscal Service, Parkers- Secretary’s action in any such respect
burg, WV. shall be final. The Secretary may also
(b) Terms and rate of interest. The se- at any time, supplement or amend the
curities will be issued as notes or terms of these regulations, or of any
bonds, depending on their maturity, amendments or supplements thereto.
under such terms and at such rates as
determined and announced by the Sec- PART 351—OFFERING OF UNITED
retary. The Secretary will set a given STATES SAVINGS BONDS, SERIES EE
rate of interest that will apply to all
securities issued while the rate is in ef- Sec.
fect. The interest will be payable on a
monthly basis. The securities will be Subpart A—General Information
issued in a minimum of $1,000 each.
(c) Nontransferability. The securities 351.0 What does this part cover?
351.1 What regulations govern Series EE
are not transferable, but they will be savings bonds?
acceptable to secure compensating bal- 351.2 How do I contact Fiscal Service?
ances with financial agents (as de- 351.3 What special terms do I need to know
scribed in § 348.0) and may not be used to understand this part?
for any other purpose. 351.4 In what form are Series EE savings
bonds issued?
§ 348.2 Redemption/call/reinvestment.
Subpart B—Maturities, Redemption Values,
(a) Redemption by financial agents.
and Investment Yields of Series EE Sav-
The securities may be redeemed prior
ings Bonds
to maturity by financial agents only
under such terms and conditions as set GENERAL PROVISIONS
forth in agreements between the finan- 351.5 What is the maturity period of a Se-
cial agents and the Department of the ries EE savings bond?
Treasury, Financial Management Serv- 351.6 When may I redeem my Series EE sav-
ice, Washington, DC. ings bond?
(b) Call by the Treasury. The securi- 351.7 May Series EE savings bonds be called
ties are subject to call before maturity. for redemption prior to final maturity?
The Secretary will announce such call 351.8 When is interest payable on Series EE
savings bonds?
by any means the Secretary deems ap-
351.9 When will I receive the redemption
propriate. value of my Series EE savings bonds?
(c) Reinvestment at maturity. The secu- 351.10 What do I need to know about market
rities shall be automatically redeemed yields, or market bid yields, to under-
at maturity and the principal amount stand redemption value calculations in
reinvested in new securities having the this subpart?
same description in all material re- 351.11 What do I need to know about the
spects as the ones redeemed, except short-term savings bond rate, to under-
stand redemption value calculations in
that the Secretary shall have the au-
this subpart?
thority to modify the rate of interest 351.12 What do I need to know about the
for the re-issued securities. The securi- long-term savings bond rate, to under-
ties shall be automatically redeemed stand redemption value calculations in
and re-invested unless the agent cer- this subpart?
322
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Fiscal Service, Treasury Pt. 351
351.13 What do I need to know about the 2005, during the original maturity pe-
savings bond rate to understand redemp- riod?
tion value calculations in this subpart? 351.31 What is the interest penalty for Se-
351.14 When are rate announcements appli- ries EE bonds with issue dates of May 1,
cable to Series EE savings bonds an- 1997, through April 1, 2005, that are re-
nounced? deemed less than 5 years after the issue
351.15 Is the determination of the Secretary date?
on rates and values final? 351.32 How are redemption values calculated
351.16 What do I need to know about the for Series EE bonds with issue dates of
base denomination for redemption value May 1, 1997, through April 1, 2005?
calculations? 351.33 What are interest rates and redemp-
351.17–351.18 [Reserved] tion values for Series EE bonds issued
May 1, 1997, through April 1, 2005, during
SERIES EE SAVINGS BONDS WITH ISSUE DATES an extended maturity period?
PRIOR TO MAY 1, 1995
SERIES EE SAVINGS BONDS WITH ISSUE DATES
351.19 What are maturity periods of Series OF MAY 1, 2005, OR THEREAFTER
EE savings bonds with issue dates prior
to May 1, 1995? 351.34 What are the maturity periods of Se-
351.20 What is the investment yield (inter- ries EE bonds with issue dates of May 1,
est) during the original maturity period 2005, or thereafter?
of Series EE savings bonds with issue 351.35 What do I need to know about inter-
dates January 1, 1980, through April 1, est rates, penalties, and redemption val-
1995? ues for Series EE bonds with issue dates
351.21 How are redemption values deter- of May 1, 2005, or thereafter?
mined during any extended maturity pe- 351.36–351.39 [Reserved]
riod of Series EE savings bonds with
issue dates prior to May 1, 1995? Subpart C—Definitive Series EE Savings
351.22 When does the redemption value in- Bonds
crease for bonds issued prior to May 1,
1995? 351.40 What were the denominations and
351.23 Are tables of redemption values avail- prices of definitive Series EE savings
able for bonds issued prior to May 1, 1995? bonds?
351.41 When are definitive Series EE savings
SERIES EE SAVINGS BONDS WITH ISSUE DATES bonds validly issued?
FROM MAY 1, 1995, THROUGH APRIL 1, 1997 351.42 What is the issue date of a definitive
Series EE savings bond?
351.24 What are the maturity periods of 351.43 Are taxpayer identification numbers
bonds with issue dates from May 1, 1995, (TINs) required for the registration of a
through April 1, 1997? definitive Series EE savings bond?
351.25 What were the interest rates and re- 351.44–351.45 [Reserved]
demption values for bonds with issue 351.46 May I purchase definitive Series EE
dates from May 1, 1995, through April 1, savings bonds over-the-counter?
1997, during semiannual rate periods in 351.47 May I purchase definitive Series EE
the first 5 years after issue date? savings bonds through a payroll savings
351.26 What are the interest rates and re- plan?
demption values for bonds with issue 351.48 May I purchase definitive Series EE
dates from May 1, 1995 through April 1, savings bonds through employee thrift,
1997, during semiannual rate periods that savings, vacation, and similar plans?
begin 5 years or more after issue date? 351.49 How are definitive Series EE savings
351.27 What are the interest rates and re- bonds delivered?
demption values for bonds with issue 351.50 How is payment made when definitive
dates from May 1, 1995 through April 1, Series EE savings bonds are redeemed?
1997, during an extended maturity pe- 351.51 How can I find out what my definitive
riod? Series EE savings bonds are worth?
351.28 How are redemption values calculated 351.52–351.59 [Reserved]
for bonds with issue dates from May 1,
1995, through April 1, 1997? Subpart D—Book-entry Series EE Savings
SERIES EE SAVINGS BONDS WITH ISSUE DATES Bonds
OF MAY 1, 1997, THROUGH APRIL 1, 2005
351.60 How are book-entry Series EE sav-
351.29 What are the maturity periods of ings bonds purchased and held?
bonds with issue dates of May 1, 1997, 351.61 What are the denominations and
through April 1, 2005? prices of book-entry Series EE savings
351.30 What are interest rates and monthly bonds?
accruals for Series EE bonds with issue 351.62 How is payment made for purchases
dates of May 1, 1997, through April 1, of book-entry Series EE savings bonds?
323
§ 351.0 31 CFR Ch. II (7–1–20 Edition)
351.63 How are redemption payments made § 351.1 What regulations govern Series
for my redeemed book-entry Series EE EE savings bonds?
savings bonds?
351.64 What is the issue date of a book-entry (a) The regulations in 31 CFR part 353
Series EE savings bond? apply to definitive (paper) Series EE
351.65 What amount of book-entry Series savings bonds that have not been con-
EE savings bonds may I acquire per year? verted to book-entry bonds through
351.66–351.67 [Reserved] New Treasury Direct.
351.68 Are taxpayer identification numbers (b) The regulations in 31 CFR part 363
(TINs) required for registration of book- apply to:
entry Series EE savings bonds? (1) Book-entry Series EE savings
351.69 When is a book-entry Series EE savbonds that were originally issued as
ings bond validly issued? book-entry bonds in New Treasury Di-
351.70 How are redemption values calculated rect; and
for book-entry Series EE savings bonds? (2) Definitive Series EE savings bonds
351.71 How can I find out what my book- that have been converted to book-entry
entry Series EE savings bonds are worth? bonds through New Treasury Direct.
351.72–351.80 [Reserved] (c) The regulations in 31 CFR part 370
apply to transactions for the purchase
Subpart E—Miscellaneous Provisions
of savings bonds issued through the Bu-
351.81 Is the Education Savings Bond Pro- reau of the Fiscal Service, but do not
gram available for Series EE savings apply to transactions purchased
bonds? through issuing agents generally.
351.82 Does Fiscal Service prohibit the (d) We expressly disclaim any rep-
issuance of Series EE savings bonds in a resentations or warranties regarding
chain letter scheme? Series EE savings bonds that in any
351.83 [Reserved] way conflict with these regulations and
351.84 Does Fiscal Service make any res- other applicable law.
ervations as to issue of Series EE savings
bonds? [68 FR 24796, May 8, 2003, as amended at 70
351.85 May Fiscal Service waive any provi- FR 14941, Mar. 23, 2005]
sion in this part?
351.86 What is the role of Federal Reserve § 351.2 How do I contact Fiscal Serv-
Banks and Branches? ice?
351.87 May Fiscal Service revise, supple- You may contact Fiscal Service by e-
ment or amend the terms of this offer- mail at savbonds@bpd.treas.gov, or by
ing? writing to the following address: Bu-
APPENDIX TO PART 351—TAX CONSIDERATIONS reau of the Fiscal Service, Parkers-
burg, West Virginia 26106–1328. Our
AUTHORITY: 5 U.S.C. 301; 12 U.S.C. 391; 31
U.S.C. 3105. website address is
www.savingsbonds.gov.
SOURCE: 68 FR 24796, May 8, 2003, unless
otherwise noted. § 351.3 What special terms do I need to
know to understand this part?
Subpart A—General Information Accrual date is the first day of any
month on which earnings on a Series
§ 351.0 What does this part cover? EE bond accrue. The redemption value
This part is the offering of United of a bond does not change between
States Savings Bonds of Series EE (re- these accrual dates.
ferred to as Series EE bonds or bonds) Automated Clearing House (ACH)
for sale to the people of the United means a funds transfer system gov-
States by the Secretary of the Treas- erned by the Rules of the National
ury (Secretary). Series EE bonds have Automated Clearing House Association
(NACHA). NACHA provides for the
been offered since 1980. The current
interbank clearing of electronic entries
offer was effective May 1, 2005, and will
for participating financial institutions.
continue until terminated by the Sec-
Bank account means your account at
retary.
a United States depository financial in-
[68 FR 24796, May 8, 2003, as amended at 70 stitution (whether a bank or other fi-
FR 17288, Apr. 5, 2005] nancial institution) to which you have
324
Fiscal Service, Treasury § 351.3
directed that ACH debits and payments Interest, as used in this part, is the
be made. difference between the principal
Beneficiary refers to the second indi- amount and the redemption value of
vidual named in the registration of a the bond.
security held in definitive form reg- Issue date is the first day of the
istered ‘‘John Doe SSN 123–45–6789 POD month in which an authorized issuing
(payable on death to) Joseph Doe.’’ In agent receives payment of the issue
the New Treasury Direct system, bene- price of the bond.
ficiary refers to the second individual Issuing agent means an organization
named in the registration of a security that has been qualified under 31 CFR
registered ‘‘John Doe SSN 123–45–6789 part 317, and any other entity that is
POD (payable on death to) Joseph Doe otherwise authorized to issue bonds.
SSN 987–65–4321.’’ In these examples, New Treasury Direct system (New
Joseph Doe is the beneficiary. Treasury Direct) is an online account
Book-entry bond means a Series EE system in which you may hold and con-
savings bond maintained by Treasury duct transactions in eligible book-
solely as a computer record. entry Treasury securities.
Converted bond means a savings bond Original maturity period or original ma-
originally issued as a definitive bond turity refers to the initial maturity pe-
that has been surrendered to us and riod of a bond prior to any extensions
converted to a book-entry savings bond of maturity; this period varies from 8
to be maintained by Treasury solely as to 20 years, depending on the issue date
a computer record. of the bond.
Coowner means either the first or the Owner is either a single owner, the
second individual named in the reg- first individual named in the registra-
istration of a definitive Series EE sav- tion of a bond held in the owner with
ings bond registered ‘‘John Doe SSN beneficiary form of registration, or the
123–45–6789 or Joseph Doe.’’ In this ex- primary owner of a book-entry bond
ample, John Doe and Joseph Doe are held in the primary owner with sec-
coowners. ondary owner form of registration.
Definitive bond means a Series EE Par means the face amount of a Se-
savings bond issued in paper form. ries EE savings bond.
Extended maturity period, second ex- Paying agent means a financial insti-
tended maturity period, and extended ma- tution that has been qualified under 31
turity refer to periods after the original CFR part 321.
maturity dates of the bonds during Person means an entity including an
which owners may retain them and individual, trust, estate, corporation,
continue to earn interest. government entity, association, part-
Face amount refers to the nominal nership, and any other similar organi-
amount of a Series EE savings bond. zation. Person does not mean a Federal
The face amount of a definitive Series Reserve Bank.
EE bond is imprinted on the front of Primary owner means the first indi-
the bond. The face amount of a book- vidual named in the registration of a
entry Series EE bond is the amount of book-entry bond held in New Treasury
the original investment. (See principal Direct registered ‘‘John Doe SSN 123–
amount.) 45–6789 with Joseph Doe SSN 987–65–
Fiduciary means the court-appointed 4321.’’ In this example, John Doe is the
or otherwise qualified person, regard- primary owner.
less of title, who is legally authorized Principal amount means the amount
to act for another. Fiduciary does not of the original investment. Principal
include an attorney-in-fact. amount does not include any interest
Final maturity refers to the date that earned.
a bond ceases to earn interest. Redemption of a book-entry Series EE
Individual means a natural person. savings bond refers to payment of prin-
Individual does not mean an organiza- cipal and accrued interest on the bond
tion, representative, or fiduciary. at final maturity, or, at the option of
Inscription means the information the owner, prior to final maturity. The
that is printed on the face of the bond. owner of a book-entry savings bond
325
§ 351.4 31 CFR Ch. II (7–1–20 Edition)
held in New Treasury Direct may re- ample, 12–3456789. The hyphens are an
deem all principal and interest or a essential part of the numbers.
portion of the principal and the propor- We, us, or our refers to the agency,
tionate amount of interest. the Bureau of the Fiscal Service. The
Redemption of a definitive Series EE term extends to the Secretary of the
savings bond refers to the payment of Treasury and the Secretary’s delegates
principal and accrued interest when at the Treasury Department and Bu-
the owner presents the bond for pay- reau of the Fiscal Service. The term
ment. also extends to any fiscal or financial
Redemption value means principal agent we designate to act on behalf of
plus accrued interest of a Series EE the United States.
savings bond, as of the date of poten- You or your refers to an owner of a
tial or actual redemption. In the case Series EE savings bond.
of a book-entry Series EE savings
bond, it also refers to a portion of the [68 FR 24796, May 8, 2003, as amended at 70
principal amount plus a proportionate FR 14941, Mar. 23, 2005; 71 FR 46857, Aug. 15,
amount of accrued interest of a bond, 2006]
as of the date of potential or actual re-
§ 351.4 In what form are Series EE sav-
demption.
ings bonds issued?
Registration means that the names of
all persons named on the bond and the Series EE savings bonds are issued in
taxpayer identification number (TIN) book-entry form. Effective January 1,
of the owner, first-named coowner, or 2012, Treasury discontinued the
purchaser of a gift bond are maintained issuance of definitive Series EE savings
on our records. bonds.
Secondary owner means the second in- [76 FR 66855, Oct. 28, 2011]
dividual named in the registration of a
book-entry bond held in New Treasury
Direct registered ‘‘John Doe SSN 123– Subpart B—Maturities, Redemption
45–6789 with Joseph Doe SSN 987–65– Values, and Investment Yields
4321.’’ In this example, Joseph Doe is of Series EE Savings Bonds
the secondary owner.
Semiannual rate periods or semiannual GENERAL PROVISIONS
earnings periods are the six-month peri-
ods beginning on the issue date and on § 351.5 What is the maturity period of
a Series EE savings bond?
each semiannual anniversary of the
issue date to final maturity. Series EE savings bonds have a total
Series EE savings bond is an accrual- maturity period of 30 years from the
type savings bond, offered at a dis- issue date, consisting of an original
count, either in definitive (paper) form maturity period and one or two periods
or in book-entry form, that pays inter- of extended maturity, which vary de-
est on the principal based on rates depending on the issue date of the bond.
termined by Treasury. The interest on an outstanding bond
Single owner means the person named ceases to accrue 30 years after its issue
in the registration of a savings bond date.
without a coowner, beneficiary or sec-
ondary owner. § 351.6 When may I redeem my Series
Taxpayer identification number (TIN) EE savings bond?
means the identifying number required (a) Bonds with issue dates on or before
on tax returns and other documents January 1, 2003. You may redeem your
submitted to the Internal Revenue Series EE savings bond at any time be-
Service; for example, an individual’s ginning six months after its issue date.
social security account number (SSN)
(b) Bonds with issue dates on or after
or an employer identification number
February 1, 2003. You may redeem your
(EIN). A SSN is composed of nine digits
separated by two hyphens, for example, Series EE savings bond at any time be-
123–45–6789. An EIN is composed of nine ginning twelve months after its issue
digits separated by one hyphen, for ex- date.
326
§ 351.7 May Series EE savings bonds of one percent. For bonds entitled to
be called for redemption prior to interest accruals at the short-term sav-
final maturity? ings bond rate, that rate applies to the
The Secretary of the Treasury may bond’s first full semiannual interest ac-
not call Series EE bonds for redemp- crual period following each announce-
tion prior to final maturity. ment of the rate.
§ 351.8 When is interest payable on Se- § 351.12 What do I need to know about
ries EE savings bonds? the long-term savings bond rate, to
understand redemption value cal-
Interest on a bond accrues and be- culations in this subpart?
comes part of the redemption value. In-
terest earnings are payable upon re- We determine this rate by compiling
demption. 5-year Treasury securities rates as of
the close of business for each day of the
§ 351.9 When will I receive the redemp- previous six months and calculating
tion value of my Series EE savings the monthly average for each month,
bonds? rounding each monthly average to the
(a) You will be paid the redemption nearest one-hundredth of one percent.
value of your definitive bond when you We then determine the long-term sav-
surrender the bond for payment as pro- ings bond rate by taking 85 percent of
vided in these regulations and in 31 the 6-month average and rounding the
CFR part 353. result to the nearest one-hundredth of
(b) You will be paid the redemption one percent. For bonds entitled to in-
value of your book-entry bond when it terest accruals at the long-term sav-
reaches final maturity, if you have not ings bond rate, that rate applies to the
redeemed the bond previously. bond’s first full semiannual interest ac-
crual period following each announce-
§ 351.10 What do I need to know about ment of the rate.
market yields, or market bid yields,
to understand redemption value § 351.13 What do I need to know about
calculations in this subpart? the savings bond rate to under-
stand redemption value calcula-
We use market yields, or market bid tions in this subpart?
yields, derived from Treasury bills,
notes, and bonds, to create a yield We determine the savings bond rate
curve based on the most actively trad- by compiling 5-year Treasury securi-
ed Treasury securities. This curve re- ties yields as of the close of business
lates the yield on a security to its time for each day of the previous six months
to maturity. Yields at particular and calculating the monthly average to
points on the curve are referred to as the nearest one-hundredth of one per-
‘‘constant maturity yields’’ and are de- cent. We then determine the savings
termined by the Treasury from this bonds rate by taking 90 percent of the
daily yield curve. Six-month and 5-year 6-month average and rounding the re-
Treasury securities rates are derived sult to the nearest one-hundredth of
from these yield curves. one percent.
§ 351.11 What do I need to know about § 351.14 When are rate announcements
the short-term savings bond rate, to that apply to Series EE savings
understand redemption value cal- bonds announced?
culations in this subpart? (a) The Secretary will furnish rates
We determine this rate by compiling that apply to Series EE savings bonds
6-month Treasury securities rates as of in announcements published each May
the close of business for each day of the 1 and November 1.
previous three months and calculating (b) If the regularly scheduled date for
the monthly average for each month, the announcement is a day when we
rounding each monthly average to the are not open for business, then the Sec-
nearest one-hundredth of one percent. retary will make the announcement on
We then determine the short-term sav- the next business day. However, the ef-
ings bond rate by taking 85 percent of fective date of the rate remains the
the three-month average and rounding first day of the month of the announce-
the result to the nearest one-hundredth ment.
327
§ 351.15 31 CFR Ch. II (7–1–20 Edition)
(c) The Secretary may announce to your slight advantage or disadvan-

rates at any other time. tage, depending on whether the value is
rounded up or down.
§ 351.15 Is the determination of the
Secretary on rates and values final? Example. The following hypothetical exam-
ple illustrates the calculation: A rate of
The Secretary’s determination of 3.25% will result in a newly purchased $12.50
rates of return and savings bond re- unit increasing in value after six months to
demption values is final and conclu- $12.70, when rounded to the nearest cent.
sive. Therefore, a $5,000 definitive Series EE bond
(with a principal amount of $2,500) will be
§ 351.16 What do I need to know about worth $2,540 after six months ([$2,500 divided
the base denomination for redemp- by $12.50] × $12.70 = $2,540.) In contrast, if ap-
tion value calculations? plied directly to a $2,500 principal amount,
We base all calculations of interest the rate would render a value of $2,540.63
after six months, a difference of 63 cents.
on a unit with a principal amount of
(This example does not account for any in-
$12.50. We use this unit value to deter- terest penalty that might apply if you re-
mine the value of bonds in higher de- deem a bond less than five years after its
nominations. The effect of rounding off issue date.)
the value of the $12.50 unit increases at
higher denominations. This can work §§ 351.17–351.18 [Reserved]
SERIES EE SAVINGS BONDS WITH ISSUE DATES PRIOR TO MAY 1, 1995
§ 351.19 What are maturity periods of Series EE savings bonds with issue dates
prior to May 1, 1995?
Bonds with issue dates from January 1, 1980, through May 1, 1995 have an origi-
nal maturity period and two extended maturity periods, as shown by the fol-
lowing table:
First extended Second ex-
Original term
Issue dates—1st day of term tended term Final maturity dates
(in years) (in years) (in years)
Jan. 1980–Oct. 1980 ............................... 11 10 9 Jan. 2010–Oct. 2010.

Nov. 1980–Apr. 1981 .............................. 9 10 11 Nov. 2010–Apr. 2011.
May 1981–Oct. 1982 ............................... 8 10 12 May 2011–Oct. 2012.
Nov. 1982–Oct. 1986 .............................. 10 10 10 Nov. 2012–Oct. 2016.
Nov. 1986–Feb. 1993 ............................. 12 10 8 Nov. 2016–Feb. 2023.
Mar. 1993–Apr. 1995 .............................. 18 10 2 Mar. 2023–Apr. 2025.
§ 351.20 What is the investment yield downloading from our website at

(interest) during the original matu- www.savingsbonds.gov, contacting us by
rity period of Series EE savings email at savbonds@bpd.treas.gov, or by
bonds with issue dates from Janu- writing us at the following address: Bu-
ary 1, 1980, through April 1, 1995? reau of the Fiscal Service, Parkers-
The redemption value of a bond on a burg, West Virginia 26106–1328.
given interest accrual date during (2) Bonds bearing issue dates of Novem-
original maturity will be the higher of ber 1, 1982, through April 1, 1995—(i)
the value produced using the applicable Prior to 5 years from issue date. You may
guaranteed minimum investment yield download the guaranteed minimum in-
or the value produced using the appro- vestment yields prior to 5 years from
priate market-based variable invest- issue date at our website at
ment yield. www.savingsbonds.gov, by contacting us
(a) Guaranteed minimum investment by email at savbonds@bpd.treas.gov, or
yield—(1) Bonds bearing issue dates prior writing to the following address: Bu-
to November 1, 1982. You may obtain the reau of the Fiscal Service, Parkers-
guaranteed minimum investment burg, West Virginia 26106–1328.
yields on bonds bearing issue dates (ii) On or after 5 years from issue date.
prior to November 1, 1982, by The guaranteed minimum investment
328
yield of a bond from its issue date to vember 1, 1982, or its issue date, which-
each semiannual interest accrual date ever is later, to each successive semi-
occurring on or after 5 years from issue annual interest accrual date occurring
up to original maturity will be as fol- after 5 years from issue up to original
lows, compounded semiannually: maturity, the average market yield for
each additional 6-month period will be
Issue dates of bonds Percent
included in the computation.
Nov. 1, 1982–October 1, 1986 ............................ 7.5
Nov. 1, 1986–Feb. 1, 1993 ................................. 6 § 351.21 How are redemption values
Mar. 1, 1993–Apr. 1, 1995 .................................. 4 determined during any extended
maturity period of Series EE sav-
(b) Market-based variable investment ings bonds with issue dates prior to
yield. If a bond is held for a period of 5 May 1, 1995?
years after its first semiannual inter- The redemption value of a bond on a
est accrual period, occurring on or given interest accrual date during an
after November 1, 1982, or its issue extended maturity period or periods
date, whichever is later, its market- will be the higher of the values pro-
based variable investment yield for duced using either the applicable guar-
such period, and to each successive anteed minimum investment yield or
semiannual interest accrual date up to the appropriate market-based variable
its original maturity, will be deter- investment yield. The calculation of
mined as follows: these yields and the resulting redemp-
(1) For each 6-month period, starting tion values are described below:
with the period beginning on May 1, (a) Guaranteed minimum investment
1982, we will determine the average yield and resulting values during an ex-
market yield on outstanding market- tended maturity period. A bond may be
able Treasury securities with a remain- subject to one guaranteed minimum in-
ing term to maturity of approximately vestment yield during its original ma-
5 years during such period. turity period and to another such yield
(2) For bonds bearing an issue date during each of its extended maturity
prior to May 1, 1989, the market-based periods.
variable investment yield from its first (1) Bonds entering an extended matu-
semiannual interest accrual date oc- rity period from May 1, 1989, through Feb-
curring on or after November 1, 1982, or ruary 1, 1993. Bonds that entered an ex-
its issue date, whichever is later, to its tended maturity period from May 1,
first semiannual interest accrual date 5 1989, through February 1, 1993, had a
years thereafter will be 85 percent, guaranteed minimum investment yield
rounded to the nearest one-fourth of 1 of 6 percent per annum, compounded
percent, of the arithmetic average of semiannually, during that extended
the market yield averages for the ten maturity period.
6-month periods starting with the 6- (2) Bonds entering an extended matu-
month period that most recently ended rity period on or after March 1, 1993.
before such issue date, whichever is Bonds that entered or enter an ex-
later. tended maturity period on or after
(3) For bonds bearing issue dates of March 1, 1993, have a guaranteed min-
May 1, 1989, through April 1, 1995, the imum investment yield of 4 percent per
market-based variable investment annum, compounded semiannually,
yield from the issue date to the semi- during that extended maturity period,
annual interest accrual date 5 years or the guaranteed minimum invest-
thereafter will be 85 percent, rounded ment yield in effect at the beginning of
to the nearest one-hundredth of 1 per- that period.
cent, of the arithmetic average of the (3) Determination of values for a bond
market yield averages for the ten 6- during extended maturity periods. In
month periods starting with the 6- order to determine values for a bond
month period that most recently ended during its first extended maturity pe-
before such issue date. riod, we determine the value of the
(4) In determining the market-based bond at the end of its original maturity
variable investment yield for a bond period using the guaranteed minimum
from its first semiannual interest ac- investment yield applicable to that pe-
crual date occurring on or after No- riod. This value is then used as the
329
§ 351.22 31 CFR Ch. II (7–1–20 Edition)
base upon which interest accrues dur- issue, and thereafter on the first day of
ing the first extended maturity period each successive 6-month period.
at the applicable guaranteed minimum (b) Bonds with issue dates from Novem-
investment yield for that period. We ber 1, 1980, through October 1, 1986. For
use the value thus attained at first ex- bonds with issue dates from November
tended maturity as the base upon 1, 1980, through October 1, 1986, the re-
which interest accrues during the sec- demption value increases on the first
ond extended maturity period at the day of each month from the third
applicable guaranteed minimum in- through the eighteenth month after
vestment yield for that period. We then issue, and thereafter on the first day of
compare the resulting semiannual val-
each successive 6-month period.
ues with the corresponding values de-
termined using only the applicable (c) Bonds with issue dates from Novem-
market-based variable investment ber 1, 1986, through February 1, 1993. For
yields. bonds with issue dates from November
(b) Market-based variable investment 1, 1986, through February 1, 1993, the re-
yield and resulting values during an ex- demption values increase on the first
tended maturity period. For a bond be- day of each month from the third
ginning an extended maturity period, through the thirtieth month after
the market-based variable investment issue, and thereafter on the first day of
yield from its first semiannual interest each successive 6-month period.
accrual date occurring on or after No- (d) Bonds with issue dates of March 1,
vember 1, 1982, or its issue date, which- 1993, through April 1, 1995. For bonds
ever is later, to each semiannual inter- with issue dates of March 1, 1993,
est accrual date occurring on or after through April 1, 1995, the redemption
November 1, 1989, will be 85 percent, values increase on the first day of each
rounded to the nearest one-hundredth month from the third through the six-
of one percent, of the arithmetic aver- tieth month after issue, and thereafter
age of the market yield averages for either on the first day of each month
the appropriate number of 6-month pe- or on the first day of each successive 6-
riods involved, beginning with the pe- month period, whichever accrual sched-
riod from May 1, 1982, or the 6-month ule ensures that the actual yield from
period that most recently ended before issue date to redemption date is in no
the issue date, whichever period occurs case less than 4 percent per annum,
later. We use the value of a bond on its
compounded semiannually.
first semiannual interest accrual date
occurring on or after November 1, 1982, § 351.23 Are tables of redemption val-
or its issue date, whichever is later, as ues available for bonds issued prior
the base upon which interest accrues to May 1, 1995?
during the extended maturity period at
the applicable market-based variable You may obtain the appropriate
investment yield. As described above, yields and tables by downloading from
the bond will receive the higher of the our website at www.savingsbonds.gov,
two values: One value produced using contacting us by email at
the applicable market-based variable savbonds@bpd.treas.gov, or by writing
investment yield; and, the other value us at the following address: Bureau of
produced using the guaranteed min- the Fiscal Service, Parkersburg, West
imum investment yield. Virginia 26106–1328.
§ 351.22 When does the redemption SERIES EE SAVINGS BONDS WITH ISSUE
value increase for bonds issued DATES FROM MAY 1, 1995, THROUGH
prior to May 1, 1995? APRIL 1, 1997
(a) Bonds with issue dates from Janu-
ary 1, 1980, through October 1, 1980. For § 351.24 What are the maturity periods
bonds with issue dates from January 1, of bonds with issue dates from May
1, 1995, through April 1, 1997?
1980, through October 1, 1980, the re-
demption value increases on the first (a) Original maturity. Bonds reach
day of each month from the third original maturity at 17 years after
through the thirtieth month after issue date.
330
(b) Final maturity. Series EE savings unless the terms and conditions appli-
bonds have an extended maturity pe- cable to an extended maturity period
riod of 13 years, and reach final matu- are expressly amended prior to the be-
rity at 30 years after the issue date. ginning of such period.
Bonds cease to earn interest at final
maturity. § 351.28 How are redemption values
calculated for bonds with issue
§ 351.25 What were the interest rates dates from May 1, 1995, through
and redemption values for bonds April 1, 1997?
with issue dates from May 1, 1995,
through April 1, 1997, during semi- We determine the redemption value
annual rate periods in the first 5 of a bond on the accrual date imme-
years after issue date? diately following each semiannual
(a) Interest rates. The interest rate for earning period as follows:
a Series EE bond bearing an issue date (a) We convert the applicable long-
of May 1, 1995, through April 1, 1997, for term or short-term savings bond rate
semiannual earning periods during the for the semiannual earning period to
first 5 years from issue date, was the decimal form by dividing by 100, and
short-term savings bond rate (see adjust it to a semiannual rate by divid-
§ 351.11 for a description of the short- ing by 2.
term savings bond rate.) (b) Using redemption values for the
(b) Redemption values. Redemption base denomination, as defined in
values for semiannual accrual dates oc- § 351.16, we then multiply this rate by
curring on or before 5 years from issue the redemption value of the bond at
date are calculated in accordance with the beginning of the semiannual earn-
§ 351.28. ing period.
§ 351.26 What are the interest rates (c) We add the resulting interest
and redemption values for bonds amount, rounded to the nearest cent,
with issue dates from May 1, 1995 to the redemption value of the bond at
through April 1, 1997, during semi- the beginning of the earning period to
annual rate periods that begin 5 produce the redemption value at the
years or more after issue date? next semiannual accrual date. The re-
(a) Interest rates. The interest rate for demption value of a bond remains con-
a Series EE bond bearing an issue date stant between accrual dates.
of May 1, 1995, through April 1, 1997, for
semiannual earning periods beginning 5 SERIES EE SAVINGS BONDS WITH ISSUE
years from issue date through original DATES OF MAY 1, 1997, THROUGH APRIL
maturity, is the long-term savings 1, 2005
bond rate as defined in § 351.12.
(b) Redemption values. We calculate § 351.29 What are the maturity periods
redemption values for semiannual ac- of bonds with issue dates of May 1,
crual dates occurring after 5 years 1997, through April 1, 2005?
from issue date, through original ma- (a) Original maturity—(1) Bonds with
turity, in accordance with § 351.28, ex- issue dates from May 1, 1997, to May 1,
cept that the redemption value at the 2003. Bonds reach original maturity at
date of original maturity shall not be 17 years after issue date.
less than the denomination (face (2) Bonds with issue dates of June 1,
amount or face value).
2003, through April 1, 2005. Bonds reach
§ 351.27 What are the interest rates original maturity at 20 years after
and redemption values for bonds issue date.
with issue dates from May 1, 1995, (b) Final maturity. Bonds reach final
through April 1, 1997, during an ex- maturity at 30 years after the issue
tended maturity period? date. Bonds cease to earn interest at
During an extended maturity period final maturity.
the bond will be subject to the terms
[68 FR 24796, May 8, 2003, as amended at 70
and conditions in effect when it is
FR 17288, Apr. 5, 2005]
issued, and will continue to earn inter-
est as described in paragraph § 351.26,
331
§ 351.30 31 CFR Ch. II (7–1–20 Edition)
§ 351.30 What are interest rates and on May 1, which represents one month
monthly accruals for Series EE of interest because of the 3-month in-
bonds with issue dates of May 1, terest penalty. The following table
1997, through April 1, 2005, during shows, for any given month of issue
the original maturity period?
with rates announced each May and
Savings bond rates (defined in November, the months making up the
§ 351.13) apply to earnings during the semiannual rate period during which
first semiannual rate period beginning interest is earned at the announced
on or after the effective date of the
rate (disregarding the penalty for
rate. Interest is credited on the first
bonds redeemed prior to 5 years after
day of each month and compounded
the issue date) and the months in
semiannually. Interest accrues begin-
ning with the fourth month from the which the bonds increase in value. This
issue date. For example, a bond issued rate is an annual rate compounded
in January has interest first credited semiannually.
And rate announce- Then, semiannual rate periods in And bonds increase in value
If issue month is— ment/effective date which interest is earned include on 1st day of months of—
is— months of—
Jan. or Jul ....................................... May 1 ...................... Jul. through Dec ............................ Aug. through Jan.
Feb. or Aug ..................................... May 1 ...................... Aug. through Jan ........................... Sep. through Feb.
Mar. or Sep ..................................... May 1 ...................... Sep. through Feb ........................... Oct. through Mar.
Apr. or Oct ....................................... May 1 ...................... Oct. through Mar ............................ Nov. through Apr.
May or Nov ...................................... May 1 ...................... May through Oct ............................ Jun. through Nov.
Jun. or Dec ...................................... May 1 ...................... Jun. through Nov ........................... Jul. through Dec.
Jan. or Jul ....................................... Nov. 1 ...................... Jan. through Jun ............................ Feb. through Jul.
Feb. or Aug ..................................... Nov. 1 ...................... Feb. through Jul ............................. Mar. through Aug.
Mar. or Sep ..................................... Nov. 1 ...................... Mar. through Aug ........................... Apr. through Sep.
Apr. or Oct ....................................... Nov. 1 ...................... Apr. through Sep ........................... May through Oct.
May or Nov ...................................... Nov. 1 ...................... Nov. through Apr ........................... Dec. through May.
Jun. or Dec ...................................... Nov. 1 ...................... Dec. through May .......................... Jan. through Jun.
§ 351.31 What is the interest penalty § 351.32 How are redemption values
for Series EE bonds with issue calculated for Series EE bonds with
dates of May 1, 1997, through April issue dates of May 1, 1997, through
1, 2005, that are redeemed less than April 1, 2005?
5 years after the issue date? (a) Formula for redemption value. We
If you redeem a Series EE savings determine the redemption value of a
bond with an issue date of May 1, 1997, bond for the accrual date (the first day
through April 1, 2005, less than five of each month beginning with the
years following the issue date, we re- fourth month from the issue date) in
duce the overall earning period from accordance with this section and the
the issue date by three months. For ex- following formula:
ample, if you redeem a bond issued FV = PV × {[1 + (i ÷ 2)] (m/6)}
January 1, 1998, 9 months later on Oc- where
tober 1, 1998, we will determine the re-
FV (future value) = redemption value on re-
demption value by applying the redemption date rounded to the nearest
demption value calculation formula de- cent.
scribed in § 351.32 and the savings bonds PV (present value) = redemption value at the
rate for that bond at 6 months after the beginning of the semiannual rate period
issue date on July 1, 1998. The redemp- i = savings bonds rate converted to decimal
form by dividing by 100.
tion value of a bond subject to the 3-
m = number of full calendar months out-
month interest penalty shall not be re- standing during the semiannual rate pe-
duced below the issue price. This pen- riod. 1
alty does not apply to bonds redeemed
5 years or more after the issue date. 1 The following hypothetical example illus-
trates how this formula is applied:

[68 FR 24796, May 8, 2003, as amended at 70
Example, assume a hypothetical savings
FR 17288, Apr. 5, 2005] bonds rate of 5.00% effective May 1, 2002, for
a bond denominated at $25, with an issue
332
(b) Value of bonds at original matu- (b) Final maturity. Bonds reach final
rity—(1) Definitive bond. At original ma- maturity at 30 years after the issue
turity, the redemption value of a defin- date. Bonds cease to earn interest at
itive bond shall not be less than the final maturity.
face amount/denomination of the bond.
[70 FR 17288, Apr. 9, 2005]
(2) Book-entry bond. At original matu-
rity, the redemption value of a book- § 351.35 What do I need to know about
entry bond shall not be less than dou- interest rates, penalties, and re-
ble the purchase price of the bond. demption values for Series EE
bonds with issue dates of May 1,
§ 351.33 What are interest rates and re- 2005, or thereafter?
demption values for Series EE
bonds issued May 1, 1997, through (a) Fixed rate or fixed rate of interest.
April 1, 2005, during an extended Fixed rate or fixed rate of interest
maturity period? means the rate of interest for a Series
During an extended maturity period EE savings bond with an issue date of
the bond will be subject to the terms May 1, 2005, or thereafter, established
and conditions in effect when it is by the Secretary or the Secretary’s
issued and will continue to earn inter- designee.
est as described in § 351.30, unless the (b) Determination of fixed rate of inter-
terms and conditions applicable to an est. (1) The Secretary or the Sec-
extended maturity period are expressly retary’s designee determines the fixed
amended prior to the beginning of such rate of interest, which is established
period. for the life of the bond, including the
extended maturity period, unless, prior
SERIES EE SAVINGS BONDS WITH ISSUE to the beginning of such maturity pe-
DATES OF MAY 1, 2005, OR THEREAFTER riod, the Secretary either announces a
different fixed rate applicable to the
§ 351.34 What are the maturity periods extended maturity period, or we ex-
of Series EE bonds with issue dates pressly amend the terms and condi-
of May 1, 2005, or thereafter?
tions applicable to the extended matu-
(a) Original maturity. Bonds reach rity period.
original maturity at 20 years after the (2) The Secretary’s determination of
issue date. rates of interest and savings bond re-
demption values is final and conclu-
date of September 1, 1997 and a redemption sive.
value of $16.00 as of September 1, 2002. The
(c) Announcement of fixed rate. (1) The
February 1, 2003, redemption value is cal-
culated as follows: Bonds issue dated in Sep- Secretary or the Secretary’s designee
tember have semiannual rate periods begin- will furnish a fixed rate of interest in
ning each March 1 and September 1. The first announcements published each May 1
semiannual rate period to begin on or after and November 1. The effective date of
the effective date of the May 1, 2002, rate the rates will be the first day of the
would be the period beginning September 1, month of the announcement.
2002. PV, the present value, would be the (2) If the regularly scheduled date for
value of the bond at the beginning of the
semiannual rate period, on September 1, 2002.
the announcement is a day when the
The savings bonds rate of 5.00% converted to Treasury is not open for business, then
a decimal would be 0.05. The number of the Secretary will make the announce-
months, m, is 5 since 5 full calendar months ment on the next business day; how-
(September through January) have lapsed ever, the effective date of the rates re-
since the beginning of the rate period. FV is mains the first day of the month of the
then the result of the formula: announcement.
FV = $16.00 × {[1 + (0.05 ÷ 2)] (5/6)} = $16.33 (3) The Secretary may announce
after rounding to the nearest cent. rates at any other time.
Using the example, the FV of a savings (4) The most recently announced
bond with a $50 or larger denomination can
be determined by applying the appropriate
fixed rate applies only to bonds pur-
multiple, for example: $16.33 × ($50.00/$25.00) chased during the six months following
for a bond with a $50.00 face amount; or $16.33 the announcement, or for any other pe-
× ($100.00/$25.00) for a bond with a $100.00 face riod of time announced by the Sec-
amount. retary.
333
§§ 351.36–351.39 31 CFR Ch. II (7–1–20 Edition)
(d) Monthly accruals. Interest accrues § 351.42 What is the issue date of a de-
on the first day of each month; that is, finitive series EE savings bond?
we add the interest earned on a bond The issue date of a definitive bond is
during any given month to its value at the first day of the month in which an
the beginning of the following month. authorized issuing agent received pay-
The accrued interest compounds semi- ment of the issue price.
annually.
[76 FR 66855, Oct. 28, 2011]
(e) Interest penalty for Series EE bonds
redeemed less than 5 years after issue § 351.43 Are taxpayer identification
date. If you redeem a bond with an numbers (TINs) required for the
issue date of May 1, 2005, or thereafter, registration of a definitive Series
less than five years following the issue EE savings bond?
date, we reduce the overall earning pe- The registration of a definitive Se-
riod from the issue date by three ries EE savings bond must include the
months. However, the redemption TIN of the owner or first-named co-
value of a bond subject to the 3-month owner. The TIN of the second-named
interest penalty shall not be reduced coowner or beneficiary is not required
below the issue price. This penalty does but its inclusion is desirable. If the
not apply to bonds redeemed 5 years or bond was purchased as a gift or award
more after the issue date. and the owner’s TIN is not known, the
(f) Redemption value of Series EE bonds TIN of the purchaser must be included
at original maturity—(1) Definitive bond. in the registration of the bond.
At original maturity, the redemption [71 FR 46857, Aug. 15, 2006, as amended at 76
value of a definitive bond shall not be FR 66855, Oct. 28, 2011]
less than the face amount/denomina-
tion of the bond. §§ 351.44–351.45 [Reserved]
(2) Book-entry bond. At original matu-
§ 351.46 May I purchase definitive Se-
rity, the redemption value of a book- ries EE savings bonds over-the-
entry bond shall not be less than dou- counter?
ble the purchase price of the bond.
Effective January 1, 2012, Treasury
[70 FR 17289, Apr. 9, 2005] discontinued the over-the-counter sale
of definitive Series EE savings bonds.
§§ 351.36–351.39 [Reserved]
[76 FR 66855, Oct. 28, 2011]
Subpart C—Definitive Series EE § 351.47 May I purchase definitive Se-

Savings Bonds ries EE savings bonds through a
payroll savings plan?
§ 351.40 What were the denominations Treasury discontinued the issuance
and prices of definitive Series EE of definitive Series EE savings bonds
savings bonds?
through a payroll savings plan:
Prior to January 1, 2012, we issued de- (a) Effective October 1, 2010, for
finitive Series EE savings bonds in de- United States government employees,
nominations of $50, $75, $100, $200, $500, and
$1000, $5000, and $10,000. The purchase (b) Effective January 1, 2011, for all
price was one-half the amount of the other employees.
denomination. [75 FR 52460, Aug. 26, 2010]
[76 FR 66855, Oct. 28, 2011]
§ 351.48 May I purchase definitive Se-
§ 351.41 When are definitive Series EE ries EE savings bonds through em-
savings bonds validly issued? ployee thrift, savings, vacation, and
similar plans?
A definitive bond is validly issued
You may purchase bonds registered
when it is registered as provided in 31
in the names of trustees of employee
CFR part 353, and when it bears an
plans in book-entry form in multiples
issue date and the validation indicia of of $100 through a designated Federal
an authorized issuing agent. Reserve Bank, after we have approved
334
the plan as eligible for the special limi- § 351.51 How can I find out what my
tation under § 353.13 of this chapter. definitive Series EE savings bonds
are worth?
§ 351.49 How are definitive Series EE (a) Redemption values. We make re-
savings bonds delivered?
demption values available for defini-
We deliver definitive bonds by mail tive bonds in various formats and
to your address. If your address is with- media.
in the United States, its territories or (1) You may determine the redemp-
possessions, or the Commonwealth of tion value for definitive bonds on the
Puerto Rico, we will deliver bonds at Internet at <http://
our risk. Bonds delivered elsewhere www.savingsbonds.gov>.
will be delivered at your risk; however, (2) You may download savings bond
at our discretion, we may require deliv- calculators from the Internet at <http://
ery to an address within the United www.savingsbonds.gov>.
States, or refuse delivery to addresses (3) You may obtain paper tables from
in countries referred to in part 211 of the Bureau of the Fiscal Service, Par-
this chapter. kersburg, West Virginia 26106–1328. We
reserve the right to cease making
§ 351.50 How is payment made when paper tables of redemption values
definitive Series EE savings bonds available.
are redeemed? (b) Redemption penalty. For bonds
(a) Payment in general. A financial in- issued after May 1, 1997, redemption
stitution qualified as a paying agent values published in the tables reflect
under the provisions of 31 CFR part 321 the three-month interest penalty ap-
plied to bonds redeemed prior to five
will pay the current redemption value
years from the issue date.
of a definitive Series EE bond pre-
sented for payment. The bond must §§ 351.52–351.59 [Reserved]
meet the requirements for payment
specified in 31 CFR part 353. You must
Subpart D—Book-entry Series EE
establish your identity and entitle-
ment to redemption to the satisfaction
Savings Bonds
of the agent, in accordance with our in- § 351.60 How are book-entry Series EE
structions and identification guide- savings bonds purchased and held?
lines, and must sign and complete the
Book-entry bonds must be purchased
request for payment.
and held online through your New
(b) Payment to beneficiary or legal rep- Treasury Direct account. We provide
resentative. A paying agent may, but is instructions for opening an account on-
not required to, pay the current re- line at <http://www.fiscal.treasury.gov>.
demption value of a definitive Series
EE savings bond upon the request of a § 351.61 What are the denominations
beneficiary if he or she survives the and prices of book-entry Series EE
owner, or a legal representative des- savings bonds?
ignated in the bond registration by Book-entry bonds are issued in a
name and capacity, or a court-ap- minimum amount of $25, with addi-
pointed legal representative of the tional increments of one cent.
last-deceased registrant’s estate pro-
vided: § 351.62 How is payment made for pur-
(1) The bond is in order for payment; chases of book-entry Series EE sav-
ings bonds?
and
(2) The presenter establishes his or You may only purchase book-entry
her identity to the satisfaction of the Series EE savings bonds online through
agent in accordance with our instruc- your New Treasury Direct account.
tions and identification guidelines, and You may pay for your securities
through a debit to your designated ac-
signs and completes the request for
count at a United States depository fi-
payment.
nancial institution, or by applying the
redemption proceeds of a certificate of
335
§ 351.63 31 CFR Ch. II (7–1–20 Edition)
indebtedness held in your New Treas- cipal amount as calculated in § 351.16 to

ury Direct account. calculate a CRV prorated to the book-
entry principal investment amount for
[69 FR 50308, Aug. 16, 2004]
the corresponding issue and redemp-
§ 351.63 How are redemption payments tion dates. Calculated book-entry CRV
made for my redeemed book-entry will be rounded to the nearest one
Series EE savings bonds? cent. 2 The formula is as follows:
We will make payments electroni- [Book-entry principal investment ÷
cally by direct deposit, using the ACH $100] × [CRV value for $100 principal
method, to your designated account at amount].
a United States depository financial in- [68 FR 24796, May 8, 2003, as amended at 75
stitution. You may also direct that a FR 52460, Aug. 26, 2010]
payment be used to purchase a certifi-
cate of indebtedness to be held in your § 351.71 How can I find out what my
New Treasury Direct account. book-entry Series EE savings bonds
are worth?
[69 FR 50308, Aug. 16, 2004]
(a) Redemption values. You may ac-
§ 351.64 What is the issue date of a cess redemption values for your book-
book-entry Series EE savings bond? entry bonds through your New Treas-
The issue date of a book-entry Series ury Direct account.
EE savings bond is the first day of the (b) Redemption penalty. Redemption
month in which the security posts to values shown in your New Treasury Di-
the current holdings of the account rect account for bonds that are within
owner. 5 years from issue date reflect the
three-month interest penalty applied
[69 FR 50308, Aug. 16, 2004] to bonds redeemed prior to five years
from the issue date.
§ 351.65 What amount of book-entry
Series EE savings bonds may I ac- §§ 351.72–351.80 [Reserved]
quire per year?
The principal amount of book-entry Subpart E—Miscellaneous
Series EE savings bonds that you may Provisions
acquire in any calendar year is pro-
vided at § 363.52. § 351.81 Is the Education Savings Bond
Program available for Series EE
[77 FR 213, Jan. 4, 2012] savings bonds?
§§ 351.66–351.67 [Reserved] You may be able to exclude from in-
come for Federal income tax purposes
§ 351.68 Are taxpayer identification all or part of the interest received on
numbers (TINs) required for reg- the redemption of qualified bonds dur-
istration of book-entry Series EE ing the year. To qualify for the pro-
savings bonds? gram, you or the coowner (in the case
The TIN of each person named in the of definitive savings bonds) must have
registration is required to purchase a paid qualified higher education ex-
book-entry bond. penses during the same year. You also
must have satisfied certain other con-
§ 351.69 When is a book-entry Series ditions. This exclusion is known as the
EE savings bond validly issued? Education Savings Bond Program. In-
A book-entry bond is validly issued formation about the program can be
when it is posted to your New Treasury found in Internal Revenue Service Pub-
Direct account. lications. (For example, see Publica-
tion 17, ‘‘Your Federal Income Tax,’’
§ 351.70 How are redemption values Publication 550, ‘‘Investment Income
calculated for book-entry Series EE and Expenses,’’ and Publication 970,
savings bonds? ‘‘Tax Benefits for Higher Education.’’)
We base current redemption values
(CRV) for book-entry Series EE savings 2 Example: Calculated value of $25.044
bonds on the definitive savings bond rounds to $25.04; calculated value of $25.045
CRV. We use the CRV for a $100 prin- rounds to $25.05.
336
Fiscal Service, Treasury Pt. 351, App. A
These publications are available on the § 351.85 May Fiscal Service waive any
IRS Web site at http://www.irs.gov. provision in this part?
We may waive or modify any provi-
§ 351.82 Does Fiscal Service prohibit sion of this part in any particular case
the issuance of Series EE savings
bonds in a chain letter scheme? or class of cases for the convenience of
the United States or in order to relieve
We do not permit bonds to be issued any person or persons of unnecessary
in a chain letter or pyramid scheme. hardship:
We authorize an issuing agent to refuse (a) If such action would not be incon-
to issue a bond or accept a purchase sistent with law or equity;
order if there is reason to believe that (b) If it does not impair any material
a purchase is connected with a chain existing rights; and
letter. The agent’s decision is final. (c) If we are satisfied that such ac-
tion would not subject the United
§ 351.83 [Reserved] States to any substantial expense or li-
ability.
§ 351.84 Does Fiscal Service make any
reservations as to issue of Series EE § 351.86 What is the role of Federal Re-
savings bonds? serve Banks and Branches?
We may reject any application for (a) Federal Reserve Banks and
Series EE bonds, in whole or in part. Branches are fiscal agents of the
We may refuse to issue, or permit to be United States. They are authorized to
issued, any bonds in any case or class perform such services as we may re-
of cases, if we deem the action to be in quest of them, in connection with the
the public interest. Our action in any issue, servicing and redemption of Se-
such respect is final. ries EE bonds.
(b) We have currently designated the
following Federal Reserve Offices to
provide savings bond services:
Servicing site Reserve district served Geographic area served
Federal Reserve Bank, Buffalo Branch, 160 Dela- New York, Boston ......... Connecticut, Maine, Massachusetts, New Hamp-
ware Avenue, Buffalo, NY 14202. shire, New Jersey (northern half), New York,
Rhode Island, Vermont, Puerto Rico, Virgin Is-
lands.
Federal Reserve Bank, Pittsburgh Branch, 717 Cleveland, Philadelphia Delaware, Kentucky (eastern half), New Jersey,
Grant Street, Pittsburgh, PA 15219. (southern half), Ohio, Pennsylvania, West Vir-
ginia (northern panhandle only).
Federal Reserve Bank of Richmond, 701 East Richmond, Atlanta ......... Alabama, District of Columbia, Florida, Georgia,
Byrd Street, Richmond, VA 23219. Louisiana (southern half), Maryland, Mis-
sissippi (southern half), North Carolina, South
Carolina, Tennessee (eastern half), Virginia,
West Virginia (except northern panhandle).
Federal Reserve Bank of Minneapolis, 90 Hen- Minneapolis, Chicago. ... Illinois (northern half), Indiana (northern half),
nepin Avenue, Minneapolis, MN 55401. Iowa, Michigan, Minnesota, Montana, North
Dakota, South Dakota, Wisconsin.
Federal Reserve Bank of Kansas City, 925 Grand Dallas, San Francisco, Alaska, Arizona, Arkansas, California, Colorado,
Boulevard, Kansas City, MO 64106. Kansas City, St. Louis. Hawaii, Idaho, Illinois (southern half), Indiana
(southern half), Indiana (southern half), Kan-
sas, Kentucky (western half), Louisiana (north-
ern half), Mississippi (northern half), Missouri,
Nebraska, Nevada, New Mexico, Oklahoma,
Oregon, Tennessee (western half), Texas,
Utah, Washington, Wyoming, Guam.
§ 351.87 May Fiscal Service revise, sup- APPENDIX TO PART 351—TAX

plement or amend the terms of this CONSIDERATIONS
offering?
1. What are some general tax considerations?
We may revise, supplement or amend General. Interest on savings bonds is sub-
the terms of this offering at any time. ject to taxes imposed under the Internal
Revenue Code of 1986, as amended. The bonds
are exempt from taxation by any State or
337
Pt. 352 31 CFR Ch. II (7–1–20 Edition)
political subdivision of a State, except for 352.9 Delivery of bonds.
estate or inheritance taxes. (See 31 U.S.C. 352.10 Taxation.
3124.) 352.11 Reservation as to issue of bonds.
2. What reporting methods are available for 352.12 Waiver.
savings bonds? 352.13 Fiscal agents.
(a) Reporting methods. You may use either 352.14 Reservation as to terms of offer.
of the following two methods for reporting
AUTHORITY: 5 U.S.C. 301; 12 U.S.C. 391; 31
the increase in the redemption value of the
U.S.C. 3105.
bond for Federal income tax purposes:
(1) Cash basis method. You may defer re- SOURCE: 54 FR 40249, Sept. 29, 1989, unless
porting the increase to the year of final ma- otherwise noted.
turity, redemption, or other disposition,
whichever is earliest; or § 352.0 Offering of bonds.
(2) Accrual basis method. You may elect to The Secretary of the Treasury of-
report the increase each year, in which case
the election applies to all Series EE bonds
fered to the people of the United
that you then own, those subsequently ac- States, United States Savings Bonds of
quired, and to any other obligations pur- Series HH in exchange for eligible
chased on a discount basis. United States Savings Bonds of Series
(b) Changing methods. If you use the cash E and EE and United States Savings
basis method, you may change to the accrual Notes (Freedom Shares). This offering
basis method without obtaining permission is being withdrawn and will terminate
from the Internal Revenue Service. However, at the close of business on August 31,
once you elect to use the accrual basis meth-
2004.
od in paragraph (a)(2), you may change the
method of reporting the increase only by fol- [69 FR 40318, July 2, 2004]
lowing the specific procedures prescribed by
the Internal Revenue Service for making a § 352.1 Governing regulations.
method change. For further information, you
may contact the Internal Revenue Service
Series HH bonds are subject to the
director for your area, or the Internal Rev- regulations of the Department of the
enue Service, Washington, DC 20224. Treasury, now or hereafter prescribed,
3. What transactions have potential tax con- governing United States Savings Bonds
sequences? of Series EE and HH contained in De-
The following types of transactions, among partment of the Treasury Circular, Fis-
others, may have potential tax con- cal Service Series No. 3–80, as amended
sequences: (31 CFR part 353), hereinafter referred
(a) A reissue that affects the rights of any
of the persons named on a definitive Series
to as Circular No. 3–80.
EE savings bond may have tax consequences
§ 352.2 Description of bonds.
for the owner.
(b) The transfer of a book-entry Series EE (a) General. Series HH bonds were
savings bond from one owner to another may issued only in registered form and are
have tax consequences for the transferor. nontransferable. The bonds are distin-
(c) The redemption of a book-entry Series guishable by the portraits, color, bor-
EE savings bond by the secondary owner
may have tax consequences for the primary
der design, tax-deferral legend, and
owner. text material.
(d) The purchase of a Series EE savings (b) Denominations and prices. Series
bond as a gift may have gift tax con- HH bonds were issued at face amount
sequences. and are in denominations of $500, $1,000,
$5,000 and $10,000.
PART 352—OFFERING OF UNITED (c) Term. Each bond bears an issue
STATES SAVINGS BONDS, SERIES HH date which is the date from which in-
terest is earned. The date was estab-
Sec. lished as provided in § 352.7(f). Series
352.0 Offering of bonds. HH bonds have an original maturity
352.1 Governing regulations. period of 10 years and have been grant-
352.2 Description of bonds. ed an extended maturity period of 10
352.3 Registration and issue. years; they will reach final maturity 20
352.4 Limitation on purchases. years from their issue dates.
352.5 Authorized issuing and paying agents.
352.6 [Reserved] (d) Redemption. A Series HH bond
352.7 Issues on exchange. may be redeemed after six months from
352.8 Reinvestment of matured Series H its issue date. The Secretary of the
bonds. Treasury may not call Series HH bonds
338

CFR 2021 Title31 Vol2 Part351

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§ 348.1 31 CFR Ch.

performed on behalf of the Department tifies in writing, to the Treasury, Fi-

(c) The Secretary may announce to your slight advantage or disadvan-

SERIES EE SAVINGS BONDS WITH ISSUE DATES PRIOR TO MAY 1, 1995

Jan. 1980–Oct. 1980 ............................... 11 10 9 Jan. 2010–Oct. 2010.

§ 351.20 What is the investment yield downloading from our website at

trates how this formula is applied:

Subpart C—Definitive Series EE § 351.47 May I purchase definitive Se-

indebtedness held in your New Treas- cipal amount as calculated in § 351.16 to

§ 351.87 May Fiscal Service revise, sup- APPENDIX TO PART 351—TAX

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