Transfers between Savings Bond series

Friday, August 5th, 2005
Categorized as: Yesterday's News (old post archive)

I assume it's possible to transfer Series EE Savings Bonds to either Series I bonds or Treasury securities. If so, is it possible to avoid taxes on the accrued interest by doing that transaction?

Tom's response

Actually, there's no direct method of making a transfer like this. All you can do is redeem one and purchase the other. Interest income is taxable in the year you make the redemption.

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