dcsimg

I Bonds to Earn 6.98% When Bought from November 1999 through April 2000

FOR IMMEDIATE RELEASE

November 1, 1999

I BOND EARNINGS RATE: 6.98%

The earnings rate for I Bonds is a combination of a fixed rate, which will apply for the life of the bond, and the inflation rate. The 6.98 percent earnings rate for I Bonds bought from November 1999 through April 2000 will apply for the first six months after their issue. The earnings rate combines the 3.40 percent fixed rate of return with the 3.52 percent annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The CPI-U increased from 165.0 to 167.9 from March to September 1999, a six-month increase of 1.76 percent.

Treasury's inflation-indexed I Bonds are designed to offer all Americans a way to save that protects the purchasing power of their investment by assuring them a real rate of return over and above inflation. I Bonds have features that make them attractive to many investors. They are sold at face value in denominations of $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000 and earn interest for as long as 30 years. I Bond earnings are added every month and interest is compounded semiannually. They are State and local income tax exempt, and Federal income tax on I Bond earnings can be deferred until the bonds are cashed or they stop earning interest after 30 years. Investors cashing I Bonds before five years are subject to a 3-month earnings penalty.

I BOND FIXED RATE 3.40%

Series I, inflation-indexed savings bonds purchased from November 1999 through April 2000 will earn a 3.4 percent fixed rate of return over and above inflation. The 3.4 percent fixed rate applies for the 30-year life of I Bonds purchased during this six-month period.

EARNINGS RATES FOR ALL I BONDS

Earnings rates and actual yields for I Bonds are shown in the I Bond Earnings Report.

MORE INFORMATION

Get the latest information about I Bonds and Series EE bonds at Public Debt's savings bond website at www.savingsbonds.gov. Download the new Savings Bond Wizard version 2.02, a free, easy-to-use program that lets you keep track of all your savings bonds, calculate the value of your portfolio, and more. The latest United States Savings Bonds/Notes Earnings Report, containing rate and yield information for Series E, EE, and I bonds along with Savings Notes, is also available at the website or by mail. Send a postcard asking for the “Earnings Report” to the Bureau of the Public Debt, 200 Third Street, Parkersburg, WV 26106-1328.