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GLOSSARY: Enter search term:
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Glossary Term: PENALTY

Definition(s) for PENALTY:


1. ) A loss consisting of the most recent 3 months' interest for EE bonds with May 1997 or later issue dates, and I Bonds, if the bonds are redeemed in the first 5 years after issue In other words, if you redeem a May 1997 or later EE bond, or an I Bond, before it's 5 years old, you give up the last 3 months' worth of interest For example, if you buy an EE bond in May 1997 and redeem it 2 years (24 months) later, you get your original investment back plus 21 months of interest The value of the bond would be based on the announced rates applied over the 21-month period from May 1997 to February 1999


See Also:
PREPAYMENT PENALTY, PENALTY TAX, EARLY WITHDRAWAL PENALTY, PREPAYMENT PENALTY



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