The annual limitation on purchases of United States Savings Bonds will be set at $5,000 per Social Security Number, effective January 1, 2008. The limit applies separately to Series EE and Series I savings bonds, and separately to bonds issued in paper or electronic form. Under the new rules, an individual can buy a maximum of $5,000 worth of electronic and paper bonds of each series in a single calendar year, or a total of $20,000, in single ownership form. If paper bonds are issued in co-ownership form, the limit applies to the first-named co-owner. All limits are based on the issue price of the securities.

The Treasury Retail Securities of the Federal Reserve Bank of Cleveland, in an effort to help protect investor privacy and guard against identity theft, announced that effective August 1, 2006, the first five digits of the Taxpayer Identification Number (TIN), which translates to the Social Security Number (SSN) of the Bond Owner, will be masked partially on all paper savings bonds. Asterisks will replace the masked digits.

For example:
An SSN previously shown as 123 45 6789 will be inscribed as *** ** 6789.

This change applies to purchases of Series EE and I paper savings bonds. Bond recipients will receive an explanation of this change included with their printed bonds.

The Bond Owner’s SSN will continue to be a required as part of a bond’s registration and will be used as an identifier in the Treasury’s record keeping system. Employees must continue to provide their full SSN to their Savings Bonds Coordinators when submitting savings bonds applications.

Investing in Savings Bonds
Employees have the opportunity to purchase United States Savings Bonds and pay for them through payroll deductions.

Savings Bonds have been purchased by millions of Americans to save for their children's education, commemorate a special event, or just invest for the future. Savings Bonds have several benefits:

• They are backed by the full faith and credit of the United States government
• Interest from Savings Bonds is exempt from state and local taxes
• Federal tax is deferred until bonds are redeemed

Learn more about savings bonds from the federal government
Learn more from DCAS


Series EE Bonds
The NYC Savings Bond Program offers Series EE Bonds, for which employees pay one-half the face value. Bonds purchased May 1, 2005 and after will earn a fixed rate of return. The new fixed rate will apply to the 30-year life of each bond, which includes a 10-year extended maturity period. The maturity period is the maximum amount of time required for a bond to reach its face value. The original maturity period for Series EE bonds issued prior to June 2003 is 17 years and for bonds issued from June 2003 through May 2005, it is 20 years. In addition, bonds issued prior to May 2005, will not earn a fixed rate of return and will be governed by the terms in effect when they were issued.

Rate adjustments will be made each May 1 and November 1 on all newly issued bonds, with each new rate effective for all bonds issued through the following six months. Interest accrues monthly and is compounded semiannually. Savings bonds must be held a minimum of one year, and there is a three-month interest penalty applied to bonds held less than five years from issue date.

Savings bonds are available in electronic or paper form. Paper EE bonds are issued at a 50 percent discount from face value and can be purchased through payroll deductions by completing a Savings Bonds Series "EE" Deduction Enrollment form. Electronic EE bonds are issued at face value and can be purchased directly from the Treasury Department by opening a TreasuryDirect online account at www.treasurydirect.gov.

EE bonds are available in $100, $200 and $500 denominations. You can choose to pay the full amount in one deduction or spread it up to several installments. For instance, if you choose a $200 Series EE bond with four installments, you would pay $25 per pay period for a total of $100, one-half the face value.

If a bond less than one year old is missing or is never received, contact your agency's Savings Bond Coordinator who will contact OPA. OPA will track down a non-receipt bond if you specify the pay date(s) the deductions where completed. If you lose a bond that is over one year old, contact the Federal Bureau of The Public Debt at (304) 480-7537.

Series I Bonds are designed to protect the purchasing power of investments by assuring a real rate of return over and above inflation.

Interest is added to the bond monthly and paid when the bond is cashed. Series I Bonds are sold at face value; you pay $100 for a $100 bond. They grow in value with inflation-indexed earnings for up to 30 years.

The earnings rates of Series I Bonds are a combination of two separate rates: a fixed rate of return and a variable semi-annual inflation rate. The fixed rate remains the same throughout the life of the Series I Bond while the semi-annual inflation rate can vary every six months. Series I Bonds earn interest from the first day of the month. Interest is compounded semi-annually.

You can never lose money because Series I Bonds protect you from the effects of deflation. In the rare event that the Consumer Price Index for all Urban consumers (CPI-U) goes down so the decline is greater than the fixed rate, your bonds will not decrease in value. The value of the bond will be maintained until the earnings rate produces an increase in value.

Earnings are exempt from state and local income taxes and can be deferred on federal income taxes until the bonds are redeemed or they stop earning interest after 30 years.

Learn more about Series I Bonds from the federal government


Minimum Holding Period for Savings Bonds
The Treasury Department announced that the minimum holding period that applies to United States Savings Bonds has been extended from six to twelve months, effective with issues dated on and after February 1, 2003.

The minimum holding period is the length of time from issue date that a bond must be held before it is eligible for redemption. Series EE and I Savings Bonds bearing issue dates prior to February 2003 retain the six-month minimum holding period in effect when they were issued.

Individual investors who are saving for the longer term will not be affected by the lengthened holding period. The new holding period will prevent purchasers from taking advantage of the current spread between savings bond returns and historically low short-term interest rates by cashing in bonds after six months. Savings Bonds are designed to be a long-term savings vehicle.

All other terms and conditions that apply to Series EE and I bonds remain unchanged. Both series are accrual securities, earning interest and growing in value as they are held, up to a maximum interest-bearing life of 30 years.

EE bonds earn market-based interest rates at 90 percent of an average of five-year yields of marketable Treasury securities. I bonds earn a composite rate (a combination of a fixed rate set at purchase for the life of the bond, and an inflation that is adjusted semiannually based on the consumer price index for urban consumers).

Interest on both series accrues monthly and compounds semiannually. Bonds held less than five years are subject to a three-month interest penalty.



Savings Bond Enrollment
To purchase a savings bond, you can either download the forms here or request them from your Personnel Office. You can purchase a second bond simultaneously by submitting a second form designating Bond "B." Give the complete signed form(s) to your agency's Savings Bond Coordinator. Your deductions should start within two pay periods.

After you reach your goal amount, the Federal Reserve Bank mails the Savings Bond to you or the designated bond owner. Because bonds are sent to a home address, you must take care to provide an accurate and complete address when you enroll.

Bonds are purchased on the last business day of the month that you complete the payment or goal amount. Bonds should arrive at the mailing address within fifteen (15) business days from the date of purchase.

Should the mailing address for the Savings bond changes, contact your agency's Savings Bond Coordinator as soon as possible to fill out a Savings Bond Deduction form so that your bond(s) will be deliver in a timely manner.

If a bond less than one year old is missing or is never received, contact your agency's Savings Bond Coordinator who will contact OPA. OPA will track down a non-receipt bond if you specify the pay date(s) the deductions were completed. If you lose a bond that is over one year old, contact the Federal Bureau of The Public Debt at 304-480-6112.

Download the Series EE Enrollment Form (PDF)
Download the Series I Enrollment Form (PDF)
Visit the Bureau of the Public Debt Web site


Ending Participation in the Plan
Once deductions start, they will continue to purchase bonds under the plan you selected until your agency receives a Savings Bond Deduction form to cancel the deduction(s).

If you cease employment at your agency in the middle of a bond cycle, contact your agency's Savings Bond Coordinator who will request a refund from OPA. You should receive the refund within two pay periods.

If you transfer to another agency, your savings bond deduction does not transfer with you. You need to request a refund from your old agency if you are in the middle of a bond cycle and re-enroll in your new agency.

Download the Series EE Savings Bond Deduction Form (PDF)
Download the Series I Savings Bond Deduction Form (PDF)