question.jpgIn Federal Income Tax

When do I pay interest on my U.S. Savings bond?

In general, interests on most U.S. Savings bonds (Series EE, E, and I) are reportable at maturity, or when the bonds are redeemed (proceeds from Series EE and I bonds may also be applied, tax free, toward qualified education expenses). However, you can choose to pay taxes on the unpaid interest income each year, measured by the increased value of the bond.