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Show Interest Rates Increased on E and H Bonds I President Eisenhower in sign-lng sign-lng the law raising interest rates on Series E and H Savings bonds said, "In a comparatively short span of years the U. S. Savings Bonds program has become an integral part of tie American way of life. It has taught count-' less Americans how to save today over 40 million people own more than $-11 billion in Series E and H bonds. We want to s.e more people continually buying more ,'Onds so that saving bonds will provide even (treated financial finan-cial protection and at the same time help assure the economic I stability of our country. I invite every citizen to tike advantage 'of investing In the now better-i better-i than-ever United States Savings I Bonds." i Series E. Bonds The new E bonds will yield , 3'i per cent per annum, compounded com-pounded semi-annually, when i held to maturity of eight years jand 11 months with much higher high-er redemption values in the early ear-ly years a 3rU yled in three years formerly 2 '4 ' -Old Eonds Even though the new bonds will carry a higher interest yield, in most cases it will not be advantageous ad-vantageous to cash bonds for reinvestment re-investment in new bonds considering con-sidering the time and effort required. re-quired. For instance a $100 bond issued within the last year on its first year anniversary would have a cash value of $70. 20. One year later it would be worth, if cashed, $7820. Two years from now $80.20, three years $82.20 four years $85.00. If cashed the first year It would provide $1.20 over the $75 needed need-ed to invest In a new bonds, but the new bond would not catch up to cash value of the old one until the fifth year. In addition the old bond would mature to $100 three months earlier than the new one. So In most cases, it Is advisable to hold the old bonds. All E bonds as they mature, ma-ture, If left as they are, add 37r compounded semi-annual Interest Inter-est to their face value, payable when redeemed for as long as 10 years. |