What is the deffered interest on HH bonds?

Deferred interest on HH bonds refers to the interest that accrues on these U.S. savings bonds but is not paid out until the bond is redeemed or reaches maturity. Unlike other savings bonds that earn interest and compound over time, HH bonds provide fixed semiannual interest payments, which are taxable in the year they are received. If a bondholder chooses to defer these payments, the interest will accumulate and be paid at a later date when the bond is cashed in. This feature allows for flexibility in managing interest income for tax purposes.