U.S. Savings BondsU.S. Savings Bonds

Save for Your FutureSave for Your Future

February 2003

How Do We Save?How Do We Save?

Some Examples:Some Examples: • Mutual FundsMutual Funds• U.S. Savings BondsU.S. Savings Bonds• 401k or other Savings Plans401k or other Savings Plans• IRAsIRAs• CDsCDs• Savings AccountsSavings Accounts

Many Financial Advisors Many Financial Advisors Recommend a Balanced Recommend a Balanced

PortfolioPortfolio

StocksStocksMutual FundsMutual Funds

Higher Risk/ReturnHigher Risk/Return

U.S. Savings U.S. Savings BondsBonds

Savings Savings AccountsAccounts

CDsCDs

Low Low Risk/GuaranteedRisk/Guaranteed

Why Save WithWhy Save WithU.S. Savings Bonds?U.S. Savings Bonds?

• Safe Safe • ConvenientConvenient• AffordableAffordable• LiquidLiquid• Tax AdvantagesTax Advantages

Why Save WithWhy Save WithSeries EE Savings Bonds?Series EE Savings Bonds?

• Market-based ratesMarket-based rates• Purchased for 1/2 face valuePurchased for 1/2 face value• Earn interest for 30 yearsEarn interest for 30 years

Why Save WithWhy Save WithSeries I Savings Bonds?Series I Savings Bonds?

• Fixed rate and inflation indexingFixed rate and inflation indexing• Purchased at face valuePurchased at face value• Earn interest for 30 yearsEarn interest for 30 years

I Bond DesignI Bond Design--Honoring Great Americans----Honoring Great Americans--

How Are U.S. Savings How Are U.S. Savings Bonds Purchased?Bonds Purchased?

Through the payroll savings Through the payroll savings planplan

• RegularRegular• AutomaticAutomatic• Affordable allotmentsAffordable allotments• Save it before you see itSave it before you see it• Choice of registrationChoice of registration

Convenient Where You

Work

How Are U.S. Savings How Are U.S. Savings Bonds Purchased?Bonds Purchased?

At your financial At your financial institutioninstitution

• Ask at your branchAsk at your branch• Any series or Any series or

denominationdenomination• Great for gift givingGreat for gift giving• Choice of registrationChoice of registration

Convenient Where You

Bank

How Are U.S. Savings How Are U.S. Savings Bonds Purchased?Bonds Purchased?

Direct from the TreasuryDirect from the Treasury• Online accountOnline account• Secure transactionsSecure transactions• No paper bondsNo paper bonds• Take a Guided Tour at Take a Guided Tour at

TreasuryDirect.govTreasuryDirect.gov

Convenient Where You

Live

Power of CompoundingPower of Compounding

Interest Rate:

Years

4%4% 5%5% 6%6%

55 $3,298 $3,375 $3,459

1010 $7,320 $7,695 $8,110

2020 $18,194 $20,301 $22,767

2525 $25,473 $29,362 $34,066

3030 $34,344 $40,963 $49,250

If you save $50 a month, you will accumulate:

Education Tax FeatureEducation Tax Feature Plan 1 Plan 1

• Bonds registered in parent’s nameBonds registered in parent’s name• Owner 24 years of age at purchaseOwner 24 years of age at purchase• Child may be beneficiary, but not co-ownerChild may be beneficiary, but not co-owner• Interest may be excluded if these and Interest may be excluded if these and

other restrictions are metother restrictions are met• See IRS Publication 550 for detailsSee IRS Publication 550 for details

Education Tax FeatureEducation Tax Feature Plan 1 Plan 1

Income Limits*Income Limits*

• Joint Filers: $87,750 - $117,750Joint Filers: $87,750 - $117,750

• Single Filers: $58,500 - $73,500Single Filers: $58,500 - $73,500

*For 2003—Adjusted annually for inflation.

Education Tax FeatureEducation Tax Feature Plan 2 Plan 2

• Register bonds in child’s nameRegister bonds in child’s name• Parent may be the beneficiaryParent may be the beneficiary• Child reports interest annually or defers Child reports interest annually or defers

until redemptionuntil redemption• First $750* earned annually is tax exempt First $750* earned annually is tax exempt • The next $750* is taxed at the child’s rateThe next $750* is taxed at the child’s rate

*For 2003—Subject to adjustment annually.

www.www.treasurydirecttreasurydirect..govgov

For more information, visit our website:For more information, visit our website:• Savings Bond Wizard software to track your Savings Bond Wizard software to track your

bondsbonds• Savings Bonds Calculator to value your bondsSavings Bonds Calculator to value your bonds• Current interest rates and maturity periodsCurrent interest rates and maturity periods• Treasury Hunt to find lost bondsTreasury Hunt to find lost bonds• TreasuryDirect to purchase and hold bonds TreasuryDirect to purchase and hold bonds

electronicallyelectronically• Answers to your questionsAnswers to your questions

U.S. Savings BondsU.S. Savings Bonds

February 2003

TreasuryDirect.gov