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IMMEDIATE RELEASE

Release No: 143-95
March 22, 1995

SECRETARY PERRY NAMED CHAIRMAN OF THE 1995 FEDERAL SAVINGS BONDS CAMPAIGN

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.


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