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Show f 10 1 Hilltop Times .June 24, 1993 Savings bonds still a good investment fective yield of savings bonds in comparison to other " When the Treasury Department decreased the guaranteed minimum interest rate on U.S. Savings Bonds from 6 percent to 4 percent in March, many people considered dropping savings bonds from their individual investment portfolio. are savings bonds still So the question arises a good investment? Despite the drop in interest rate, savings bonds offer many advantages to the individual investor. investments. Interest earned on savings bonds can be exempt from federal income tax if used to pay tuition and fees at colleges, universities and qualified technical schools during the same year the bonds are cashed. The education tax exclusion is subject to certain restrictions. For more details contact your unit canvasser. Interest rates are based on market performance when a savings bond is held for at least five years. variable Bonds earn the higher of the market-base- d "rate or the guaranteed minimum rate set at the time of purchase. Although the guaranteed niinimum rate is 4 permarcent, bonds are currently earning a ket based rate of 4.78 percent. . bank checkFor comparison, an interest-bearin- g ing account is currently earning 2 percent while a passbook savings account is earning 2.75 percent. A $500 one-yecertificate of deposit will earn about CD yields 4.75 per3.25 percent and a $500 five-yecent. In addition, banks normally require a minimum account' balance and impose a penalty for early withdrawal from a CD. Bonds can be purchased for as little as $50 and can be cashed six months after the issue date. patriotism Safety, bonds are backed by the full faith and Savings credit of the United States and can be replaced free if lost, stolen or destroyed. No other investment is as safe as a U.S. Savings Bond. Bonds are not only good for investors, they're good for the United States. Savings bonds strengthen the national economy by increasing levels of savings and reducing the cost of financing the public debt. For every $1 billion invested in savings bonds, the government saves $70 million in debt financing. al , ar Payroll savings plan ar There's probably no easier way to save or invest than through the payroll savings plan. Because each investor determines how much he or she wants to invest each pay period, payroll savings offers the ability to create a personalized savings plan. The average American saves less than anyone in the industrialized world. Americans typically save 6 percent while the Japanese save 17 percent of disposable income. a. bonds offer Savings competitive, convenient for to a save child's education, retirment, a way down payment for a home, or vacation. Now is the time to take charge of a personalized financial future. The Hill savings bond campaign ends Wednesday. For more information contact 1st Lt. Mark Capt. Dan Phillips, Ext. Hiryak, Ext. or your unit canvasser. Tax break Interest earned on savings bonds is exempt from all state or local income and personal property taxes, and federal income tax is deferred until the bond is redeemed or reaches final maturity (after 30 years). In other words, bond interest is compounded tax-frewhich means that bonds earn interest not only on the original principal, but also on the full untaxed e, CELEBRATE AN AMERICAN TRADITION interest previously earned. Other investments, excluding retirement accounts, are subject to federal, state and local income tax. This tax exemption will further increase the ef U.S.SAVINGS BONDS uiSiiiiiiiiiiiiiiHimiiiiiiiiiiiiiiiii;: i i E (fr" ft 1 l jj I Table I s I yf JkW n W j Pub Table - Mam ' IMW M Total Height 2712- $5500 MSfea WW rT,-: I MmUw fj fl llllf WMUHCS;5SS YWjr::r'''?Z --M -- f1 42"Wx42"Round ffjfl) U Tiyiriir Vvjii " ...I.................... ................ ........... se2!t rii2.EL fl 1 I IS M fl jrrrssziti. I '$71 II llll 1 1 1 III'It I IHkvUIji ll nnft. l II (SSiSSi-jPyi Mll Whi'ItI C1 to. rMr hM (lyy I t7 . fjO 1150 W. RiverdaleRd. A l h U I TTTTTTTTTTTTTTTTTTTTTTTTTTrTT! U 11 raw w MSififi IZZZZZL, tzzxzzz CVyULJJU " dusouhmmm "" ",fc." TTfT " (J?' ywes o Wai-m-n) I E lULJLUL1"' $5500 3$5500 $5600 fB 5; svMiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiintniiiiiii SjPjnfv - Education advantage Rates still competitive semi-annu- ' $6700 SwJ1 g-- Vit'i f ll, mt fltin ifitn f aovm hhbii tn,ntm. IMHbU I s ipl $67o' Open C Mon-- Fri 10-- 7 1 j |