Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10.1 exptools 1/6/84; site ihuxr.UUCP
Path: utzoo!watmath!clyde!burl!ulysses!mhuxl!ihnp4!ihuxr!stanwyck
From: stanwyck@ihuxr.UUCP (Don Stanwyck)
Newsgroups: att.general,net.invest
Subject: Re: U.S. Savings Bonds
Message-ID: <1077@ihuxr.UUCP>
Date: Thu, 17-May-84 00:22:03 EDT
Article-I.D.: ihuxr.1077
Posted: Thu May 17 00:22:03 1984
Date-Received: Sat, 12-May-84 12:45:43 EDT
References: <534@inuxd.UUCP>
Organization: AT&T Bell Labs, Naperville, IL
Lines: 15

The interest on the savings bonds are accumulated at the 85% of
treasury bond rates from the beginning.  What happens, in effect,
is that you pay an interest penalty for cashing them in less than
5 years + 1 day.  That penalty is that the interest on the bond
is recalculated to a straight per annum rate determined by the
length of time that you held the bond.  Once you reach the 5 year
+ 1 day point, interest is paid as though it had always received the 85%
rate.
-- 
 ________
 (      )					Don Stanwyck
@( o  o )@					312-979-3062
 (  ||  )					Cornet-367-3062
 ( \__/ )					ihnp4!ihuxr!stanwyck
 (______)					Bell Labs @ Naperville, IL