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Treasury Introduces New EasySaver Plan for Savings Bonds

FOR IMMEDIATE RELEASE

October 28, 1998

Treasury is making it easier for Americans to enjoy the benefits of regular savings with its new EasySaver Plan for U.S. Savings Bonds. Beginning Monday, November 2, 1998, millions of Americans who don't have access to payroll savings plans will, for the first time, be able to buy bonds automatically for themselves or their families. All an EasySaver customer need to do is to complete a simple order form authorizing Treasury to charge their bank account for the price of the bond.

Investors choose the dates to charge their account for their savings bond purchases. The only condition is that investors must purchase at least two bonds each year. Customers can purchase the popular Series EE bond or the new inflation-indexed I Bond.

“EasySaver is the latest innovation that we have introduced to encourage savings and to broaden access to Treasury securities,” Assistant Secretary Gary Gensler said. “With EasySaver, we have simplified the process for 120 million more Americans to buy savings bonds on a regular basis.”

EasySaver was developed in response to consumer research showing that nearly one in five respondents were interested in buying bonds regularly through authorized debits to their bank accounts. Employees of smaller businesses were particularly interested in an automatic purchase plan like EasySaver as it gives them access to a regular saving plan like the 7 million Americans who buy bonds through payroll savings plans at work.

To enroll, a purchaser simply completes the order form which is available at the Bureau of the Public Debt's website at www.easysaver.gov or by calling 1-877-811-SAVE, and mails it to the Federal Reserve Bank of Richmond. The Richmond Federal Reserve is operating EasySaver for Public Debt.

In about four weeks, customers receive written confirmation that their EasySaver accounts are active, and they will begin receiving bonds as requested. Bonds are then issued as the customer requested. Customers don't need to do anything else and bonds will be issued automatically until they cancel the enrollment.

Series EE bonds, which sell for half their face value, will be available through EasySaver in $50, $75, $100, $200, $500 and $1,000 denominations. Series I, inflation-indexed, savings bonds, which sell for face value, will be available in $50, $75, $100, $500 and $1,000 denominations. When the new $200 denomination I Bond is introduced in May 1999, it will be available through EasySaver.