Savings Bonds

Technology has overtaken the U.S. savings bonds. After this year, you will no longer be able to buy a paper bond. All purchases will be made electronically. By going totally electronic, the government is expected to save $120 million over five years. You still will  be able to redeem paper bonds at banks, though. Since 1935, people have purchased the bonds to fund the government's operations. The bonds became a traditional gift for a newborn. The Treasury Department is saying good-bye with an online interactive timeline , which includes cameos of celebrities who promoted the sale of savings bonds over the decades.

The thrill of potentially winning big bucks gets people to spend millions of dollars regularly on lottery tickets. Can this same concept excite Marylanders to become better savers? We'll find out. A new law that kicks in next month will allow banks and credit unions here to offer raffles with cash prizes as a way to promote savings. Michigan's credit unions launched a similar campaign a few years ago, and thousands of depositors have managed so far to save tens of millions of dollars.

The Bureau of Public Debt on Tuesday released the new rates for savings bonds purchased between November and the end of April. The Series I bond rate for the next six months will be 3.06 percent, down from 4.60 percent for the previous six-month period. The inflation-protection bond is made up of two rates: a fixed rate for the life of the 30-year bond and an inflation rate that is adjusted every six months. The fixed rate remains set at zero, while the annualized inflation rate of the bond is 3.06 percent.

The Bureau of Public Debt announced the new rates on savings bonds. The Series I Bonds purchased today through October of this year will have an annualized rate of 2.2 percent for the first six months of purchase. That compares with an annualized rate of 3.06 percent for new bonds purchased in the previous six months. The I Bond, an inflation protection bond, offers a fixed rate for the life of the bond, and a semi-annual rate that goes up and down based on inflation. The fixed rate is 0 percent.

Thank cost-cutting for this change to the U.S. savings bond program: Starting next year, you won’t be able to buy paper savings bonds at banks and other financial institutions. Getting rid of this paper work is expected to save taxpayers more than $70 million in the next five years, the Bureau of Public Debt announced today. You will still be able to buy savings bonds — but only an electronic version via TreasuryDirect.gov . The government has been moving toward electronic bonds.

The Bureau of Public Debt announced the new rates on savings bonds. The Series I Bonds purchased today through October of this year will have an annualized rate of 2.2 percent for the first six months of purchase. That compares with an annualized rate of 3.06 percent for new bonds purchased in the previous six months. The I Bond, an inflation protection bond, offers a fixed rate for the life of the bond, and a semi-annual rate that goes up and down based on inflation. The fixed rate is 0 percent.

The move by the federal government to end the sale of paper savings bonds at banks and credit unions next year is bad news for savers in more ways than one. The amount of savings bonds consumers can buy each year will be significantly reduced. And even though people can still purchase bonds online, the government's website is not easy to use. It's so difficult, in fact, that the nonprofit Maryland CASH Campaign has created a video of consumers struggling to navigate it. The Treasury Department's ultimate goal is to save millions by having consumers buy all savings bonds online through TreasuryDirect.gov.

Savings bonds have been a part of the American tradition for more than 50 years. A popular birthday gift, a payroll-deduction habit, a prudent nest egg for the future.Beginning in 1941 as war bonds, and then as part of the national effort to build U.S. strength during the Cold War, saving bonds came to be accepted as a safe and productive way for the average person to invest. "Help yourself by helping Uncle Sam" was a longtime slogan.But this month, Uncle Sam decided not to be so grateful.

The end of April marks the 50th anniversary of the introduction of United States Savings Bonds. But the bonds that today are the most popular form of investment in America are quite different from the ones your parents bought in 1941.For instance, in May the interest rate paid on Savings Bonds will be adjusted. When they were first issued -- in fact, through their first 40 years -- the yield was fixed. In 1982, that all changed. The yield at that time became tied to the rates paid on other securities issued by the federal government.

At year end, The Evening Sun publishes the redemption value of U.S. savings notes and bonds.Savings notes, also known as "Freedom Shares," were issued during the Johnson administration. Series EE bonds replaced Series E bonds in 1980.Since 1982, the interest rate has been linked to rates paid on other government securities. Held five years or longer, EE bonds earn 85 percent of the average return on five-year Treasury securities during the period.The fluctuating rate is set twice a year, in November and May. The current rate is 6.38 percent, which is good until April 30. The prior six-month period it was 6.57 percent.

Arbutus Middle School student Kay Htut was recognized for her computational skills in last month's countywide M & T Bank 24 Challenge held at the Crowne Plaza in Timonium. The eighth-grader at the school on Shelbourne Road, which draws students from Catonsville and Arbutus, finished second in the Middle School Level Double Digit competition. She was one of 15 finalists who each received a $100 U.S. savings bond at the competition, sponsored by M & T Bank. The five grand champions in the two elementary and three middle school divisions were each awarded $700 U.S. savings bonds.

If you don't make a lot of money, the Baltimore CASH Campaign thinks you shouldn't be forking any of it over to get your tax returns prepared. The nonprofit group is heading into its 11th tax season, offering free help for low- and moderate-income area residents. It's part of an effort to bolster families' financial security — "CASH" stands for Creating Assets, Savings and Hope. Staff and volunteers, who will officially begin the season Tuesday, help people determine the tax breaks they're eligible to receive and can direct tax refunds into savings bonds to build nest eggs.

The first baby born at Sinai Hospital during Sunday's Ravens game is going to get a little contribution toward their financial future. The Northwest Baltimore hospital is going to give a $3,000 savings bond to the first baby born after the kick off of the game against the New England Patriots. The hospital sees the gift as a way to celebrate the Ravens' success and cheer them on during the playoffs. "That baby will literally be able to say he or she was born a Ravens fan," said  Neil Meltzer, president and COO of Sinai.

Technology has overtaken the U.S. savings bonds. After this year, you will no longer be able to buy a paper bond. All purchases will be made electronically. By going totally electronic, the government is expected to save $120 million over five years. You still will  be able to redeem paper bonds at banks, though. Since 1935, people have purchased the bonds to fund the government's operations. The bonds became a traditional gift for a newborn. The Treasury Department is saying good-bye with an online interactive timeline , which includes cameos of celebrities who promoted the sale of savings bonds over the decades.

The Bureau of Public Debt on Tuesday released the new rates for savings bonds purchased between November and the end of April. The Series I bond rate for the next six months will be 3.06 percent, down from 4.60 percent for the previous six-month period. The inflation-protection bond is made up of two rates: a fixed rate for the life of the 30-year bond and an inflation rate that is adjusted every six months. The fixed rate remains set at zero, while the annualized inflation rate of the bond is 3.06 percent.

The move by the federal government to end the sale of paper savings bonds at banks and credit unions next year is bad news for savers in more ways than one. The amount of savings bonds consumers can buy each year will be significantly reduced. And even though people can still purchase bonds online, the government's website is not easy to use. It's so difficult, in fact, that the nonprofit Maryland CASH Campaign has created a video of consumers struggling to navigate it. The Treasury Department's ultimate goal is to save millions by having consumers buy all savings bonds online through TreasuryDirect.gov.

U.S. savings bonds have long been a popular way to save money, particularly because many employers allow them to be purchased through payroll deductions.As a service to readers, The Evening Sun at year-end publishes the redemption value of all U.S. savings notes and bonds.Tables showing redemption values of savings notes and of all Series EE bonds and Series E bonds purchased from 1956 to 1980 appeared yesterday. Tables showing the redemption values of the remaining Series E bonds appear below.

Savings bonds are in for a change and it doesn't look good for consumers, financial experts say.Long a favorite with small investors and families saving for college, reliable old savings bonds will switch to a variable interest-rate system starting May 1. Bonds issued before that date will not be affected by the changes.Gone is the system in which a floor was placed under the interest rate, recently 4 percent. Gone, too, is a formula for the first five years that was pegged to the higher-yielding five-year Treasury note.

Thank cost-cutting for this change to the U.S. savings bond program: Starting next year, you won’t be able to buy paper savings bonds at banks and other financial institutions. Getting rid of this paper work is expected to save taxpayers more than $70 million in the next five years, the Bureau of Public Debt announced today. You will still be able to buy savings bonds — but only an electronic version via TreasuryDirect.gov . The government has been moving toward electronic bonds.