savings bonds


Denominations Available:  $25, $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000.
Issued: May 1967 to October 1970, on a discount basis at 81 percent of the face amount. Ex: a SN/FS with a $100 face value was purchased for $81.00. 
Savings notes are registered, definitive securities that are not transferable.
Reach final maturity in 30 years from issue date.

NOTE: All SN/FS have reached final maturity in October 2000 and should be cashed in.

  Interest rate:
    Savings Notes (also called Freedom Shares) were issued on a discount basis at 81 percent of the face amount. Interest is paid at redemption as part of the current redemption value. Currently unredeemed, un-matured savings notes accrue interest at a variable, market-based rate (also applicable to Series E and EE bonds) or the guaranteed minimum investment yield, whichever is higher.
    Visit our rates page for the current interest rates.

    Savings notes were available only in combination with Series E bonds of the same or greater denominations as a way to encourage individuals to save and invest in U.S. Treasury savings securities. They were first offered in May 1967 and were withdrawn from sale as of October 1970.

    A savings note can be redeemed at a financial institution or Federal Reserve Bank at any time at the most recent semiannual accrual value. If you want to know the current accrual value of a specific savings note or to calculate the value of your savings bond holdings, see our product page for a quick statement or one of our other services. For one year after the month in which they reach final maturity, savings notes could have been exchanged for Series HH bonds with continued deferral of taxation on note interest that is included in the purchase price of the Series HH bonds received in exchange.

    The original term to maturity was 4½ years. Optional extensions of maturity consisting of two 10-year periods and an additional 5½-year period were granted to make the notes' total interest-earning life span 30 years.

  Federal income tax:
    Savings note interest is reportable for Federal income tax purposes for the year in which the note is redeemed, reaches final maturity, or is otherwise disposed of, whichever occurs first. Alternatively, the note owner may elect to report interest each year as it accrues; however, such election must apply to all of an owner's accrual-type securities.

NOTE: These bonds are NOT eligible for the tax-free educational feature.


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