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Article This article is part of the Missouri Saves Program |
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Series EE Patriot Bonds
Joyce Cavanagh, Ph.D., Former Consumer & Family Economics State Specialist, College of Human Environmental Sciences, University of Missouri Extension
What are Patriot Bonds, how do they work and how can
I buy them?
Patriot Bonds are Series EE savings bonds, which are
specially inscribed with the words "Patriot Bond." The
Patriot Bond series will begin December 11, 2001. Bonds
increase in value every month, and interest is
compounded semiannually. You can cash your bond after
six months. Bonds cashed before they are five years old
are subject to a 3-month interest penalty. EE bonds stop
earning interest at 30 years. These bonds are free from
State and local income taxes. Federal tax on interest
earned can be deferred until you cash the bond or it
reaches maturity (whichever occurs first).
You can purchase the Patriot Bond at any of thousands of financial
institutions serving as savings bond agents. You can
contact your bank or financial institution to see if
they provide this service. You can also purchase this
bond via the Internet at
www.savingsbonds.gov.
These bonds, however, cannot be purchased through payroll savings plans
due to the fact that bonds bought through a payroll
savings plan are processed by many different
organizations using a variety of inscription techniques.
Will the money I invest in Patriot Bonds be earmarked to pay for the War on Terrorism?
No, the money you invest in Patriot Bonds will not be
directly used toward the War on Terrorism. The
government established the Patriot Bond inscription in
response to the public's desire to express their support
for the rebuilding and war efforts. The funds, however,
are deposited in the general fund and are spent
according to law. Some of the general funds, though, are
used to contribute to the recovery and war efforts.
What denominations of the Patriot Bond are available? Can I buy them as gifts?
The available denominations for the Patriot Bond are:
$50, $75, $100, $200, $500, $1,000, $5,000 and $10,000.
The purchase price is one-half the face amount.
You can purchase Patriot Bonds for gifts for others, though you will
need the Social Security number of the person for whom
you wish to buy the bond. If you want to deliver a gift
bond in person or mail it with a personal message, you
should have the bond mailed to yourself.
Resources: Department of the Treasury
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Last update: Wednesday, March 19, 2008
