Series Hh Bonds replaced Series H Bonds on 1^st January, 1980. The Series H Bonds were withdrawn from sale and Series Hh Bonds were offered as an exchange for Series EE bonds, Savings notes and Series E bonds. Interestingly, Series Hh Bonds were not exchanged for cash, i.e. were not sold. The exchange with other bonds and savings note was only possible if the maturity date for them was not more than a year before the issuance of Series Hh Bonds. Furthermore, if you had series H bonds, you could use the proceeds to buy Series Hh Bonds. This reinvestment was offered to benefit the serried H bonds holders.

Series Hh Bonds are non transferable and the buyer must be physically present at the time of registration. The interest payments for these bonds were made semiannually, from the date of issue. Series Hh Bonds were issued from 1980 to 2004.  The final maturity date set for these bonds is twenty years after the date of issue. On maturity each HH bond is worth its face value. The interest payments are deposited into the checking or savings account. This is on record of the treasury department. However, it must be mentioned here that the original maturity of Series Hh Bonds was ten years which was granted an extension of ten years afterwards.

There are certain rules for bonds maturity and interest. After 1989 the interest on Series Hh Bonds is paid electronically to either the registered holder or the co-holder's account in a bank or other financial institution. The interest rate on Series Hh Bonds is fixed and is determined on the date of purchase till the next ten years, after which a new guaranteed rate is followed for the ten year extension period. The interest payments are made only till the final maturity date. On redemption, the interest ceases from the date of redemption.

Hh Bonds have been appreciated and huge investments have been made in them. This is because of the promised return as well as the many other advantages of Hh Bonds. One of them being that the interest payments received are exempted from state and local taxes. Although the payments must be reported in the period received but no tax is to be paid. Series Hh Bonds can be easily cashed at every financial institution all over the country. Thus these series bonds have attractive advantages for investors all over the country.