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 index. Income limits apply in the year of redemption of the bonds and are adjusted annually. 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. Employees with questions about the U.S. Savings Bond program should contact Joyce Dennis Henderson, assistant director of employee services, telephone 831-6651.