1. What is Series H Savings Bond Interest?

Series H Savings Bonds were U.S. government savings bonds that paid semi-annual interest directly to bondholders. The interest calculation is based on the face value and annual interest rate, paid every six months.

2. How Does the Calculator Work?

The calculator uses the Series H Savings Bond interest formula:

Where:

• \( F \) — Face value of the bond (USD)
• \( rate \) — Annual interest rate (decimal)
• \( \frac{rate}{2} \) — Semi-annual interest rate

Explanation: The formula calculates the interest payment for each six-month period by taking half of the annual interest rate multiplied by the bond's face value.

3. Importance of Bond Interest Calculation

Details: Accurate interest calculation is essential for investment planning, understanding bond yields, and comparing different investment options. Series H bonds provided predictable semi-annual income streams.

4. Using the Calculator

Tips: Enter the bond's face value in USD and the annual interest rate as a decimal (e.g., 0.05 for 5%). The calculator will compute the semi-annual interest payment.

5. Frequently Asked Questions (FAQ)

Q1: What were Series H Savings Bonds?
A: Series H Bonds were U.S. government savings bonds issued from 1952 to 1979 that paid current income through semi-annual interest payments.

Q2: How often was interest paid on Series H Bonds?
A: Interest was paid semi-annually, meaning every six months, directly to the bondholder.

Q3: What is the difference between annual rate and semi-annual payment?
A: The annual rate is divided by 2 to calculate each semi-annual payment, as interest is paid twice per year.

Q4: Are Series H Bonds still available for purchase?
A: No, Series H Bonds are no longer issued. They were replaced by Series HH Bonds in 1980, which were also discontinued in 2004.

Q5: How does this compare to other bond types?
A: Unlike Series E/EE bonds that accrue interest until redemption, Series H bonds provided current income through regular interest payments.