1. U.S. Savings Bonds Save for Your Future February 2003

2. How Do We Save? Some Examples: Mutual FundsMutual Funds U.S. Savings BondsU.S. Savings Bonds 401k or other Savings Plans401k or other Savings Plans IRAsIRAs CDsCDs Savings AccountsSavings Accounts

3. Many Financial Advisors Recommend a Balanced Portfolio Stocks Mutual Funds Higher Risk/Return U.S. Savings Bonds U.S. Savings Bonds Savings Accounts Savings AccountsCDs Low Risk/Guaranteed

4. Why Save With U.S. Savings Bonds? SafeSafe ConvenientConvenient AffordableAffordable LiquidLiquid Tax AdvantagesTax Advantages

5. Why Save With Series EE Savings Bonds? Market-based ratesMarket-based rates Purchased for 1/2 face valuePurchased for 1/2 face value Earn interest for 30 yearsEarn interest for 30 years

6. Why Save With Series I Savings Bonds? Fixed rate and inflation indexingFixed rate and inflation indexing Purchased at face valuePurchased at face value Earn interest for 30 yearsEarn interest for 30 years

7. I Bond Design --Honoring Great Americans--

8. How Are U.S. Savings Bonds Purchased? Through the payroll savings plan RegularRegular AutomaticAutomatic Affordable allotmentsAffordable allotments Save it before you see itSave it before you see it Choice of registrationChoice of registration Convenient Where You Work

9. How Are U.S. Savings Bonds Purchased? At your financial institution Ask at your branchAsk at your branch Any series or denominationAny series or denomination Great for gift givingGreat for gift giving Choice of registrationChoice of registration Convenient Where You Bank

10. How Are U.S. Savings Bonds Purchased? Direct from the Treasury Online accountOnline account Secure transactionsSecure transactions No paper bondsNo paper bonds Take a Guided Tour at TreasuryDirect.govTake a Guided Tour at TreasuryDirect.gov Convenient Where You Live

11. Power of Compounding Interest Rate: Years4%5%6% 5$3,298$3,375$3,459 10$7,320$7,695$8,110 20$18,194$20,301$22,767 25$25,473$29,362$34,066 30$34,344$40,963$49,250 If you save $50 a month, you will accumulate:

12. Education Tax Feature Plan 1 Bonds registered in parent’s nameBonds registered in parent’s name Owner 24 years of age at purchaseOwner 24 years of age at purchase Child may be beneficiary, but not co-ownerChild may be beneficiary, but not co-owner Interest may be excluded if these and other restrictions are metInterest may be excluded if these and other restrictions are met See IRS Publication 550 for detailsSee IRS Publication 550 for details

13. Education Tax Feature Plan 1 Income Limits* Joint Filers: $87,750 - $117,750Joint Filers: $87,750 - $117,750 Single Filers: $58,500 - $73,500Single Filers: $58,500 - $73,500 *For 2003—Adjusted annually for inflation.

14. Education Tax Feature Plan 2 Register bonds in child’s nameRegister bonds in child’s name Parent may be the beneficiaryParent may be the beneficiary Child reports interest annually or defers until redemptionChild reports interest annually or defers until redemption First $750* earned annually is tax exemptFirst $750* earned annually is tax exempt The next $750* is taxed at the child’s rateThe next $750* is taxed at the child’s rate *For 2003—Subject to adjustment annually.

15. www.treasurydirect.gov For more information, visit our website: Savings Bond Wizard software to track your bondsSavings Bond Wizard software to track your bonds Savings Bonds Calculator to value your bondsSavings Bonds Calculator to value your bonds Current interest rates and maturity periodsCurrent interest rates and maturity periods Treasury Hunt to find lost bondsTreasury Hunt to find lost bonds TreasuryDirect to purchase and hold bonds electronicallyTreasuryDirect to purchase and hold bonds electronically Answers to your questionsAnswers to your questions

16. U.S. Savings Bonds February 2003 TreasuryDirect.gov