1995 FEDERAL SAVINGS BONDS CAMPAIGN
President Clinton has appointed Secretary of Defense William J. Perry as
chairman of the 1995 Interagency Savings Bonds Committee. The committee,
consisting of the heads of all federal departments and agencies, is charged
with the responsibility of leading the 1995 U. S. Savings Bond Campaign for all
federal employees, both civilian and military.
In Fiscal Year 1994, a third of all federal employees regularly bought bonds
through the payroll savings plan. Based on 1994 data, the Treasury Department
estimates that for every billion dollars in U. S. Savings Bonds sold last year,
$97.5 million in debt financing costs will be saved over the life of the bonds.
In FY 94, bonds sales totalled more than $9.5 billion. As a result of those
sales, the government will save $926 million in debt financing costs.
Savings Bonds offer buyers market-based interest rates, along with tax
advantages that include exemption from state and local income taxes and tax
deferral until the bonds are redeemed or mature. Under certain circumstances
U. S. Savings Bonds may also offer additional tax advantages when used for
qualified educational expenses. The current semi-annual rate, effective
through April 30, 1995 is 5.92 percent.
