Whether a similar extension will be made on the newer bonds is not clear. The tax delay on E bonds is especially attractive to a middle-aged man who is paying income tax at a rather high rate. He can buy the bonds now, expecting that before they mature, his retirement from earning an income will cut or eliminate his income tax. Or if he dies, his estate will not have to pay tax on the appreciation accumulated during his lifetime. Thus under some conditions, an E bond can be as free of income tax as a bond labeled tax-exempt. And even though the amount of tax eventually paid on an E bond is the same as if paid each year as the bond's value appreciates, still the mere delay can be an advantage.

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