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1. A Series EE U.S. government savings bond accrues 3.5% interest each year. The bond matures in 3 years, at which time the principal and
1. A Series EE U.S. government savings bond accrues 3.5% interest each year. The bond matures in 3 years, at which time the principal and interest will be paid. The bank will pay the taxpayer at a 3.5% interest rate each year if he agrees to leave money on deposit for 3 years. What tax advantage does the Series EE bond offer that is not available with the bank deposit?
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