HH Bonds can be termed as current income securities. These bonds are no more available for the people, as U.S. Treasury has stopped issuing them. They were made once available to the people in exchange of their EE Bonds, and even, if the matured HH Bonds were reinvested. It can be termed as a 20 year non-marketable savings bond issued by the U.S. government. For the first 10 years, the rate is fixed; then again it is changed by the U.S. Treasury for the remaining of the bond's duration.

 These bonds gives interest at an interval of six months, till the redemption or maturity comes. Depending on the date of purchase of the bond, it pays fixed interest rate half-yearly.  Interest on these bonds does not include state and local taxes, but do include federal taxes. These are different from EE bonds, as these do not increase in their value. The person has to pay the face amount for the HH bond, when it is issued to them. In turn the person receives interest at a period of every six months, thus rendering the medium for “current income”. The payments for the interest are directly deposited in the bond holder's checking or savings account at any financial concern.

From the August 31, 2004, no one can either purchase or exchange these HH bonds.  
Denominations were start from $500 to $10,000 excluding capital appreciation potential, but after a period of six months the options of early redemption and exchange were available.

Before, investors holding series of EE bonds were allowed to get HH bonds in exchange of their savings bonds. People holding HH Bonds got the coupon rate just at 1.5%, after their bond became 10 years old. Investors should know whether holding onto these bonds is profitable to them or not, by calculating the earned real return. If not they should redeem these bonds, and make use of the money received to get higher yield securities.