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Show April 20, 1995 Hilltop Times Savings- bond regs change May WASHINGTON (AFNS) The announced Treasury Department changes in savings bonds March 20 that will make the program easier to understand. ies EE bonds earn the short-terrates for the first five years. The short-terrate is 85 percent of the average of m six-mont- h marketable Treasury security yields. A new rate is announced and becomes effective each May 1 and The changes in regulations, effective May 1, 1995, will ensure that Series EE bonds the most widely held will earn market-baserates from the date of purchase. "For the first time, savings bond investors will get market-baserates Nov. 1. The May 1 rate reflects mar- ket yields during the preceding February, March and April. The Nov. 1 rate reflects market yields during the preceding August, September, and October. Long-terright from the start. Whether interest savings bond rate: Serrates are high or low, savings bonds in- ies EE bonds earn the long-terrates vestors will always get a return linked from five years through 17 years. The to market rates, a fair return on their long-terrate is 85 percent of the r marketable Treasmoney," Treasury Secretary Robert average of Rubin said. ury security yields. A new rate is announced and becomes effective each Now, two different market-baserates will be announced each May 1 May 1 and Nov. 1. The May 1 rate and Nov. 1. reflects market yields during the Short-tersavings bond rate: Ser preceding November through April d d m five-yea- d m and the Nov. 1 rate reflects market yields during the preceding May through October. This change makes it easy for investors to know exactly what rate their bonds will earn during the interest period, officials said. For example, if the short term rate is 5 percent. Treasury will compute the amount to be added to a bond's value on its next interest date using that annual rate. EE Bonds The new market-basewill increase in value every six months. This means that a bond issued in January will increase in value each July 1 and Jan. 1. Investors who redeem a savings bond will receive the cash value as of the last date interest was added to the value of a bond. Investors redeeming savings bonds between interest accrual dates will not receive d 5 1 any interest for the partial period since the last interest accrual date. Savings bonds will still be sold for a price of half their face value or Because they earn rates, it is not certain when a bond will reach face value. For example, a bond earning an average of 5 percent will slightly more than double in value in 14! 2 years. If the market-baserates are not sufficient for a bond to reach face value in 17 years, however. Treasury will make a e adjustment to increase it to face value at that time, implying a minimum rate of return of just over 4 percent if a bond is held for the full 1 7 denomination. market-base- d d one-tim- years. Outstanding Series E bonds and Savings Notes as well as Series EE bonds issued before May 1, 1995. are not affected by the changes. Government tightening AmEx card regulations will prevent some unauthorized uses and make it easier to catch abusers. First, American Express is working on a system that monitors each person's automated teller machine usage. A computer automatically flags the account if a withdrawal doesn't meet certain criteria. "People should be incurring expenditures related to travel or permanent change of station moves," said Terry Gorbach, an American Express spokesman. "If all we see is a person going to an ATM machine close to where they live and withdrawing cash, the red lights go off." In addition, American Express applied retail blocks to prevent people from using the government card for mail order catalogs or home television shopping channels, said Gorbach. Retail purchases, such as in department stores, are limited to $500 a month and are intended to cover mishaps that may occur during official travel, such as lost luggage. The retail block does not apply to hotels, restaurants, car by Evetyn D. Harris American Forces Information Service Some Department of Defense employees and military members have been abusing their government American Express cards, and DOD and American Express officials want it to stop. The cards are designed to help DOD people expenses while traveling on manage official government business. The major abuses involve unauthorized cash withdrawals and charges made while individuals had no DOD travel orders, officials said. John J. Hamre, DOD comptroller, recently outlined a plan to strengthen management of the card program. Among other steps, he asked DOD organizations to cancel cards as soon as people leave DOD. He asked the services to train users on their responsibilities and card benefits and to develop clear policies and disciplinary procedures for card abusers. In addition, with DOD officials' support and approval. American Express strengthened its internal out-of-pock- et rentals and other transportation expenses. Before, government travelers could draw up to $1,000 a week from automated teller machines. controls over the government card. These controls although individual organizations could set lower limits, Gorbach said. Many DOD organizations, including the Army and Air Force, are reducing the weekly limit to S500. The cash is intended to cover taxis, parking, tunnel and toll charges, gas and other miscellaneous travel expenses. Michael Weber, the Air Force's American Express Card coordinator, said 70 percent of Air Force past-du- e accounts involve cash withdrawals from teller machines. He said people often used the money for personal expenses such as new tires or televisions. Using the card for nonauthorized expenses isn't the only problem, said officials. Some DOD travelers are delinquent in paying American Express for legitimate expenses. Government travelers are expected to file travel vouchers and pay their American Express bills promptly. DOD will punish people who misuse their cards. Military discipline ranges from letters of reprimand Civilian actions range from counto courts-martiaseling to removal. In addition. American Express has an active collection agency, but it also may sue l. for non-paymen- t. 7 .... Do you experience the symptoms of anxiety? Nervousness Anxiety Problems with concentration attacks Obsessions or compulsions CHECK POST Where You Can Borrow Up To on your Post-Date- 2(D Check d Ml? 1 Excessive worry 713 N. Main, Layton I Sleeplessness I Fatigue Racing heart Feeling keyed up Free help Is now available through a National Anxiety Diat which you or someone about whom are can concerned take a screening test for anxiety disyou orders, talk with a mental health professional, and receive insorders Screening Day formative materials about anxiety disorders. 12 NOON A Special Presentation sponsored by the Mental Health Partnership DO WHEN APPREHENSION. WORRY AND FEAR TAKE OVER ANXIETY: WHAT TO formerly Check Expressions 546-277- 8 Muscle tension Restlessness National Anxiety Disorders Screening Day CHECK POST - FRIDAY I Irritability May 3, 1995 (Nopurcrtas necessary.) HOURS: MONDAY V 10:00 AM TO 025-644- 5 5633 S. 1900 W., Roy 5:30 PM - SATURDAY 466-707- 0 85 W. 33rd S., Salt Lake City 10.00 AM TO 2:00 PM 964-540- 0 5642 S. Redwood Road. Kearns STEVE METHNER, M.D. Force Base Recreation Center 7 For Additional Information Call Hill Air 777-349- |