Is interest earned on EE Savings Bonds redeemed at a Massachusetts bank considered Massachusetts bank interest?

Interest earned on EE Savings Bonds, even if redeemed at a Massachusetts bank, is not considered Massachusetts bank interest. Massachusetts bank interest typically refers to interest earned from savings accounts, checking accounts, or certificates of deposit at banks located in Massachusetts.

Here are a couple of key points:

1. Federal Taxation: Interest from EE Savings Bonds is subject to federal income tax but is exempt from state and local taxes.
2. Massachusetts Bank Interest: This term specifically applies to interest earned from accounts at banks or financial institutions within Massachusetts

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