The principal advantage of a Qualified Savings Bond is that the interest received from this type of bond is free from tax, in case the redemption of the bond is done for the purpose of payment for higher educational programs. Both state and federal taxes are not imposed on the interest received from EE series Savings Bonds if utilized for educational cost, provided the costs are spent in the year in which the redemption of the savings bonds is done. The Qualified Savings Bonds are regarded as favorable presents for children. These bonds are issued at a minimum face value of US$ 50. The interest is accumulated in terms of a floating rate and the adjustment of the rate is done two times in a year.
