SAVINGS BONDS

USSCO Federal Credit Union offers its members several U.S. Savings Bond services. The most widely used services are savings bond purchases and redemption.

We can also assist you with savings bonds transactions that must be processed through the Federal Reserve bank, such as reissue transactions in the event of an owner's death, etc..
For these types of transactions, please contact us in advance so that we can be sure to have the necessary forms available. We may also need to advise you of certified documentation that you will have to produce.

BOND A MONTH
Our special Bond-A-Month account is a non-interest bearing savings account from which Series EE or Series I bonds can be purchased. On the last working day of every month, the monies are withdrawn from the account and a bond is issued for the designated amount. All that is necessary for a bond account is to fill out the necessary form. Contact USSCO today.

BOND PURCHASING
Our credit union can process savings bond purchase requests for Series EE and Series I Savings Bonds. Series EE Bonds are purchased at half of face value starting at a face value of $50.00. Series I Bonds are purchased at face value starting at a face value of $50.00.

The EE Bond Series earn interest at the savings bond rates determined each May and November. Effective November 1, 2008 the interest rate was set at 1.30% fixed for EE Bonds. This rate applies to the 20 year life to maturity and 30 year interest bearing term of the savings bond. Bonds must be held for 1 year before redemption and if redemed within 5 years of purchase will have a 3 month interest penalty.

The I Bond Series earnings rate is a combination of two separate rates: a fixed rate of return and a semiannual inflation rate. The fixed rate of return is determined each May and November and applies to all I Bonds issued during that six-month period. The fixed rate remains the same for the life of the bond. The fixed rate is .70% for all I Bonds purchased between November 1, 2008 and April 30, 2009. I Bonds have a 30-year life.

Also, each May and November, the Treasury determines a semiannual inflation rate based on changes in the Consumer Price Index for all Urban consumers. The semiannual inflation rate is then combined with the fixed rate to determine the bond's earning rate for the next six months. Effective November 1, 2008, the current earnings rate for Series I Bonds is 5.64%. Bonds must be held 1 year before redemption.

In order to purchase Series EE or Series I Bonds, we need a bond order form completed. You will need to provide the Social Security number of the bond owner and it will be necessary for you to designate either a co-owner or beneficiary.

If you would like more information on investing in savings bonds, such as Saving Bonds for Education Purposes, click on the link to the Bureau of Public Debt's web site below.

BOND REDEMPTION
Our credit union is able to redeem Series E, Series EE, and Series I Savings Bonds for our members.

In order to redeem any of these series bonds, the bond must be at least six months old (12 months for bonds issued after February 2003) and you must be able to identify yourself as the owner, co-owner, or other entitled person of that bond.

All interest earned on savings bonds is reportable on your Federal Income Tax return. We will produce and mail a 099-Interest form to you during the following January after you have redeemed your bonds.

If you currently own an inventory of savings bonds, the Bureau of Public Debt has a terrific web site you can use to calculate the redemption value of each of your bonds. They also have a program called the "Savings Bond Wizard" which you can download. This program can help you maintain your savings bond inventory by determining the current redemption values, earned interest, etc..

Click here to see what this site has to offer
http://www.Treasurydirect.gov/indiv/tools