UpDate - Vol. 14, No. 28, Page Bonds-3
April 20, 1995
Buy Bonds
12 good reasons for buying bonds

 1. Competitive interest rates
    Series EE U.S. Savings Bonds held five years or longer earn
    market-based interest or a guaranteed minimum rate, whichever is
    higher, compounded semiannually. Semiannual rates are announced
    May 1 and Nov. 1.

 2. Guaranteed minimum return
    Interest on Series EE bonds is compounded semiannually. The
    current interest rate is 5.92 percent and a minimum rate of 4
    percent is guaranteed on bonds held for five or more years.

 3. Tax exemptions
    Interest earned on U.S. Savings Bonds is exempt from all state
    and local income taxes.

 4. Deferred reporting of interest for federal taxes
    Interest earned is not subject to federal income taxes until the
    bonds are cashed or reach final maturity in 30 years. Taxes may
    be deferred further if bonds are exchanged for Series HH bonds.

 5. Peace of mind in retirement
    Savings bonds may be cashed to supplement a retirement income.
    Or, a regular income may be produced by exchanging Series EE
    savings bonds for HH bonds, which pay interest semi-annually.

 6. Cash on demand
    One of the best benefits of U.S. Savings Bonds is cash when the
    owners need it. Bonds may be cashed any time after six months
    from purchase. Interest accrues monthly for 18 years and there
    are no penalties associated with cashing bonds before maturity.

 7. College costs made easier
    U.S. Savings Bonds may provide tax savings when used to finance
    higher education.

 8. Easy to buy
    Purchasers can buy Series EE savings bonds through a payroll
    savings plan at work or through over-the-counter purchases or the
    bond-a-month plan at their bank.

 9. Strengthening America
    Buying U.S. Savings Bonds is patriotic. Purchasers earn interest
    while helping their country. Savings bonds sales reduce borrowing
    costs for the treasury and taxpayers.

10. No commissions or maintenance fees
    No fees or commissions are paid to buy or redeem savings bonds.

11. Guaranteed safe
    If lost, stolen or destroyed, U.S. Savings Bonds can be replaced
    without charge. Keep a record of the serial numbers of all bonds
    purchased.

12. Unsurpassed reliability
    U.S. Savings Bonds are backed by the full faith and credit of the
    United States.