I Bonds

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I Bonds

• Everyone Needs a Safe Place to Grow.

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I Bonds Honoring Great Americans
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Helen Keller 50 (1880-1968)

• Author, Advocate for People with Disabilities
• Successful in making Braille the standard for
  printed communication with the blind focused
  public attention on issues affecting the
  handicapped

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Dr. Hector P. Garcia 75 (1914-1996)

• Physician, World War II Veteran, Humanitarian
• Activist in the Latino civil rights movement and
  founder of the American G.I. Forum served as
  U.S. Ambassador to the United Nations

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Martin Luther King Jr. 100 (1929-1968)

• Civil Rights Leader, Minister, Nobel Peace Prize
  Recipient
• Co-founded Southern Christian Leadership
  Conference and helped achieve legal equality for
  African Americans

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Chief Joseph 200 (1840-1904)

• Nez Perce Chief, Native American leader
• Led Nez Perce in principled resistance to U.S.
  Government attempts to force his people onto a
  reservation

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Gen. George C. Marshall 500 (1880-1959)

• Military General, Statesman, Nobel Peace Prize
  Recipient
• Served as General and Chief of staff of the Army,
  Secretary of State, Secretary of Defense first
  soldier to receive Nobel Peace Prize

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Albert Einstein 1,000 (1879-1955)

• Physicist, Author of the Theory of Relativity,
  Nobel Prize Recipient
• Replaced centuries of physics with a more
  complete view of the universe received Nobel
  Prize for physics and worked for peace

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Marian Anderson 5,000 (1897-1993)

• World-Renowned Vocalist (Contralto)
• First African American to sing with the
  Metropolitan Opera her dignity in the face of
  discrimination opened the classical music world
  to African American performers

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Spark Matsunaga 10,000 (1916-1990)

• U.S. Senator and Congressman, World War II Hero
• Champion of civil rights for all Americans and
  worked to promote peaceful resolution of
  conflicts served with first Japanese American
  unit in World War II

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I Bond facts

• Sold at par (face) value
• Denominations
• 50 75 100 200 500
• 1,000 5,000 10,000
• Inflation-protected

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Keeping up with inflation

• At 2.5 inflation, you would need 128 in 10
  years to buy 100 of todays goods
• You would need to earn 2.5 on an investment just
  to stay even
• I Bonds are an investment that guarantees a fixed
  return over and above inflation for up to 30 years

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I Bond facts

• Purchase limit
• 30,000 face amount per person
• Determined by Social Security number
• Interest-bearing life
• 30 years
• Eligible for redemption anytime after six months
• Three-month interest penalty if cashed before
  five years
• Not eligible for HH Bond exchange

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Interest calculation

• Fixed rate of return
• Inflation adjustment
• Earnings rate

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Fixed rate of return

• Set for the life of the bond
• Announced May 1 and November 1 for bonds sold in
  the next six months

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Inflation adjustment

• Adjustment based on Consumer Price Index for All
  Urban Consumers (CPI-U)
• Reflects the percent change in the CPI-U during
  the six-month period
• Semiannual inflation rate published
• May 1 will reflect October to March CPI-U
• Nov 1 will reflect April to September CPI-U

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Earnings rate

• Combination of fixed rate and semiannual
  inflation rate
• Earnings added to I Bond value monthly
• I Bond interest compounded semiannually
• If deflation occurs, earnings rate will not drop
  below zero

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Tax treatment

• State and local income tax exemption
• Federal income tax deferral
• Educational tax advantages apply to I Bonds
  as well as EE

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Safety features

• Principal and interest backed by Treasury
• Protection from inflation
• Replaced if lost, stolen, or destroyed

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I Bonds

• Everyone Needs a Safe Place to Grow.