Series EE Bonds

The United States government guarantees series EE savings bonds. Series EE bonds are exempt from tax both state and local and from Federal taxes in cases when they are for paying college expenses.
Pay interest depends on market rates. It can be cashed not earlier than after six month. You can purchase series EE bonds from commercial banks. Most banks work as agents; they let you fill out special forms and then forward them to the Treasury.

You’ll receive the bonds a few weeks later. Also savings bonds can be cashed in directly with a branch office of the Federal Reserve Bank. A bond can be registered to a single person, to two people or to a primary owner.
Series EE bonds can be issued on paper and electronically. Ownership of bonds can be transferred. You have to hold your bonds for a year at least. If your bonds are stolen, lost, mutilated, destroyed, you should give quick notice to the Department of the Treasury. The more information is provided, the faster the Treasury will replace your bonds.
Mostly conservative investors prefer to buy series EE savings bonds. The thing is that savings bonds unlike other types of bonds always hold value and are redeemable. And still they continue to offer some additional advantages. The amount of minimum investment is low, you are not required to pay taxes unless you cash them in, and your interest is exempt from state taxes.