UpDate - Vol. 15, No. 28, Page SB-1
April 18, 1996
U.S. Savings Bond insert
Campus campaign; Savings bond drive scheduled through April 29

     The University will conduct its annual U.S. Savings Bond campaign
through April 29 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interest from federal income tax until funds are withdrawn.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 4.75 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, 1996. 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 Bond program. U.S. Savings Bonds applications can be obtained
from Personnel Records, 87 East Main Street.
     Employees with questions about the U.S. Savings Bond program
should contact Joyce Dennis Henderson, assistant director of employee
services, telephone 831-6651.