1. Do Series EE Bonds Offer Any Special Advantage if Used to Save for College?

    Children Doing School WorkThere are many ways to save for a child’s college education and maximize the funds with such tax-sheltered savings as Series EE Bonds.

    A Series EE Bond also known as a Patriot Bond is a low-risk investment whose earnings are usually subject to Federal income taxes. However, a savings bond education tax exclusion makes it possible for U.S. taxpayers to cash in bonds tax-free, when the money earned is used to pay for qualified higher education expenses in the same year that the bonds are redeemed. Examples of qualified education expenses include tuition and fees, but exclude room, books and board.