DEFINITION of 'Series E Bond'
Accrual bonds that were issued at 75% of the face amount. Interest is paid at redemption as part of the redemption value. Series E Bond interest is reportable for Federal income tax purposes for the year in which the Series E Bonds are redeemed, reach final maturity or are otherwise disposed of, whichever occurs earliest. Replaced with Series EE Bond in 1980.
BREAKING DOWN 'Series E Bond'
The series E Bond is the one most associated with World War II war bonds. The first Series E Bond was sold to President Franklin D. Roosevelt.