U.S. Savings Bonds
Purchasing U.S. Savings Bonds through payroll deduction is easy and convenient. You can purchase Series EE Savings Bonds in one installment or spread over several pay periods. Series EE Savings Bonds are sold at half of their face value and earn rates based on the market returns of 5-year treasury securities. They are backed by the full faith and credit of the United States and the income they earn is exempt from state and local income taxes. In addition, there are special tax benefits available for investors who use Savings Bonds to save for their children's education. If you qualify, you can exclude all or part of the interest earned by your bonds from your federal income taxes when you redeem them to pay for college or technical school tuition and fees (see IRS publication 950 for details). The following are the purchasing options. You can pay in one installment or spread the payments over up to five paychecks. When the purchase is complete, the bond will be mailed to you by the Federal Reserve Bank.
| Bond Face Value | Purchase Price | Amount Deducted from your paycheck |
# of Pay Periods |
|---|---|---|---|
| $100 | $50 | $10 | 5 |
| $12.50 | 4 | ||
| $25 | 2 | ||
| $50 | 1 | ||
| $200 | $100 | $20 | 5 |
| $25 | 4 | ||
| $50 | 2 | ||
| $100 | 1 | ||
| $500 | $250 | $50 | 5 |
| $62.50 | 4 | ||
| $125 | 2 | ||
| $250 | 1 |
To participate in the program, complete and return the Authorization for Purchase/Payroll Deduction form to Payroll Services. Complete a separate form for each bond purchased. If you are paid monthly, return the form by the fourth working day of the current month. If you are paid biweekly, return the form by noon on the Thursday preceding pay day to be effective the following pay day.
