The current interest rate is 5.92 percent and a minimum rate of 4 percent is guaranteed on bonds held for five or more years. The interest earned on savings bonds purchased in 1990 and after may be used to pay for a child's college or trade education. This interest is exempt from federal income tax if the parents' adjusted annual gross income is tied to the cost of living. Partial exemptions also will be granted to parents who meet certain income requirements. Bonds are mailed directly to the bond owner by the bank.
Payroll deduction provides regular, automatic savings with no commissions or fees.
This campaign is the perfect time for employees to consider buying bonds or increasing their level of participation in the U.S. Savings Bond program.