DEFINITION of 'Qualified Savings Bond'

Refers to a series EE savings bond which has been issued after December 1989 and purchased by an individual at least 24 years of age.

BREAKING DOWN 'Qualified Savings Bond'

The interest from this type of bond is tax-free if you redeem it to pay for a higher education expense.

RELATED TERMS
  1. Series EE Bond

    A non-marketable, interest-bearing U.S. government savings bond ...
  2. U.S. Savings Bonds

    A U.S. government savings bond that offers a fixed rate of interest ...
  3. Government Bond

    A debt security issued by a government to support government ...
  4. Regulation EE

    A regulation set forth by the Federal Reserve. Regulation EE, ...
  5. Series E Bond

    Accrual bonds that were issued at 75% of the face amount. Interest ...
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    A debt investment in which an investor loans money to an entity ...
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RELATED FAQS
  1. What is the difference between EE and I Bonds?

    Read about the similarities and differences between the EE and I savings bond programs created by the U.S. Department of ... Read Answer >>
  2. How long will it take for a bond to reach its face value?

    Learn when different savings bonds reach face value, and determine the best time to cash them in to get the highest return ... Read Answer >>
  3. What is the Education Savings Bond Program?

    Learn about the education savings bond program and find out if you are eligible to use your savings bonds for payments toward ... Read Answer >>
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