Vol. 19, No. 29

May 4, 2000

Savings bonds drive scheduled through May 18

The University is conducting its annual U.S. Savings Bonds campaign through May 18 on campus. Employees may purchase up to four bonds with different owners and with different purchase prices. Employees also are able to choose to have bonds deducted from their first pay, second pay or have two deductions per month. During the campaign, employees may purchase bonds or increase current bond allocations through payroll deduction. Savings bonds have a number of attractive features, including a competitive interest rate, government guarantee of principal and interest, protection from loss or theft, exemption of earned interest from state and local income taxes and the sheltering of earned interest from federal income tax until funds are withdrawn. Interest on Series EE bonds is compounded semiannually. The current interest rate is 5.19 percent. The interest earned on savings bonds purchased in 1990 and after may be used to pay for a child's college or trade education. This interest is exempt from federal income tax if the parents' adjusted annual gross income is tied to the cost of living index. Income limits apply in the year of redemption of the bonds and are adjusted annually. Partial exemptions also will be granted to parents who meet certain income requirements. Savings bonds come in denominations that fit every budget, from $100 to $10,000, and they cost just half of the face value, so purchase prices start as low as $50. The University purchases bonds from the bank once a month when employees have accumulated enough for a bond ($50 for $100 bond, $100 for $200 bond, etc.). Bonds are dated the month of purchase; the effective date for the first bond issued in this drive will be July 1, 2000. Bonds are mailed directly to the bond owner by the bank. Payroll deduction provides regular, automatic savings with no commissions or fees. This campaign is the perfect time for employees to consider buying bonds or increasing their level of participation in the U.S. Savings Bonds program. U.S. Savings Bonds applications can be obtained from Human Resources System Administration, 87 East Main St. Employees with questions about the U.S. Savings Bonds program should contact Joyce Dennis Henderson, manager of recruitment and employment, telephone 831-2171 or visit [www.udel.edu/EMPSERVICE/ Savbond/Sbonds.html]. "Buying U.S. Savings Bonds is a way for me to do something for my grandchildren's future. I include their savings bonds with their birthday and Christmas gifts, and that way at least one gift lasts longer than a few weeks or a few months. Actually, my grandson is now 7 and already realizes that it is his savings account." –Juanita Crook, administrative assistant, Labor Relations "The University's savings bond program is a great way for me to put some extra money away for an emergency or just a rainy day. I don't even have to think about it. Then when something comes up, I've got the money I've invested plus a little extra. It's come in handy on many occasions. In fact, savings bonds are paying for my vacation in Florida!" –Burt Wilson, buyer I, Purchasing "By using payroll deduction, I don't even notice the small consistent deductions every two weeks. Before you know it, I've doubled my investment. Over the years, the program has allowed me to put a nice down payment on a car and has allowed me to purchase appliances for my new home. It's great." –Diane Zabenko, manager, University Bookstore