UpDate - Vol. 15, No. 28, Page SB-4
April 18, 1996
U.S. Savings Bond insert
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 return
     Interest on Series EE bonds is compounded semiannually. The
     current interest rate is 4.75 percent.

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.