Employee Benefits
U.S. Savings Bonds
NOTE: The U.S. Department of the Treasury has announced it will stop issuing paper savings bonds through traditional payroll savings plans. Therefore, payroll deduction for U.S. Savings Bonds will not be available after November 2010. If you wish to purchase U.S. Savings Bonds, you can purchase them directly from the U.S. Department of the Treasury through TreasuryDirect. For more information about this change, please visit Treasury Direct.
Whether you are saving for a new home, car, vacation, education, retirement, or for a rainy day, U.S. Savings Bonds can help you reach your goals with safety, market-based yields, and tax benefits. The money invested in savings bonds directly helps finance our country's borrowing needs. The interest earned on savings bonds is exempt from all state and local income taxes. Federal income taxes on the interest are deferred until the bonds reach final maturity, or you redeem them, whichever is first.
Reasons to Consider U.S. Savings Bonds:
1. Safe and secure - backed by the U.S. Treasury Department.
2. Interest earnings are federal tax-exempt if used for college tuition.
3. Interest earnings are always state and local tax-exempt.
4. Guaranteed returns over and above inflation rate for up to 30 years.
5. Liquid investment - can be cashed after one year at your bank.
6. You pick the deduction level.
7. You can buy bonds for your children and grandchildren too.
8. You can't lose your money!
For more information on Savings Bonds you can visit www.savingsbonds.gov or call 1-800-4US-BOND for recorded rate information.
| Disclaimer | Questions About This Site | Questions About Your Benefits |
This document was last revised on April 5, 2012
