Welcome to Savings Bonds’s MAXIMIZING YOUR SAVINGS BOND INVESTMENT WEBCAST

© Copyright Savingsbonds.com | UIS Inc. – May 2007

Welcome to Welcome to SavingsSavingsBonds.com’sBonds.com’s

MAXIMIZING YOUR SAVINGS BOND MAXIMIZING YOUR SAVINGS BOND INVESTMENT INVESTMENT WEBCASTWEBCAST

Questions can be submitted using the Q&A button at the bottom right or by email at

[email protected] Your speaker today is…

Jack QuinnSavings Bond Expert


Topics we’ll cover today...Topics we’ll cover today... Savings Bond Series

Which Bonds to Hold, Which to Cash In

Best Time to Cash In YOUR Bonds

The Difference Between Initial and Final Maturity

Unpleasant Tax Surprises

This Savings Bond Educational Experience is being brought to you by www.SavingsBonds.com


Savings Bonds in CirculationSavings Bonds in Circulation

No Longer AvailableNo Longer Available Series E Series H Series HH Baby Bonds

• A thru K

Freedom Shares• aka Savings Notes

Currently AvailableCurrently Available Series EE

• aka “Patriot Bond”

Series I


Expert’s tipExpert’s tip on EE and I Bonds on EE and I BondsCan redeem both EE an I bonds only AFTER 12

months old UNLESS your county is declared a

“Federal Disaster Area” Ex. Communities affected by Hurricane Katrina

3-month interest penalty if the bond is redeemed during first 5 years


Paper EE Savings BondsPaper EE Savings Bonds Purchase at half of face value

i.e. pay $50 for a $100 bond

Denominations: $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000

Bond worth its face value when it reaches “initial” maturity Bonds purchased May 2005 & after have two major rule changes:

• Int. % Rate FIXED for first 20 years, with extension of 10 years• Guaranteed to reach face value by 20th year

$30,000 maximum cash-purchase in one calendar year ($60,000 face value)


Paper I Savings BondsPaper I Savings BondsPurchased at face value:

i.e pay $100 for a $100 bond

Denominations: $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000

$30,000 maximum cash-purchase in one calendar year ($30,000 face value)


EE Bond Interest RatesEE Bond Interest RatesFor EE Savings Bonds Purchased…For EE Savings Bonds Purchased…

April 1995 - Or Earlier Rate before May 1995 earn interest depends on their issue date Before five years old, earn interest based on fixed graduated scale,

except bonds issued March 1993-April 1995 earned a fixed rate of 4%

May 1995 - April 1997 Earn interest based on market yields for U.S. Treasury securities Bonds earned two savings bond rates: a short-term rate and a long-

term rate MAY 1997 –April 2005

Earn variable market based Rate based on 5-year Treasury security yields

May 2005 – TodayMay 2005 – Today Fixed Rate for first 20 years May Adjust for final 10 years

Rates as of May 1 2007EE BONDS: 3.40%I BONDS: 3.74%


I Bond Interest RatesI Bond Interest Rates

Increase in value monthly - interest is paid when bond is redeemed

Increase in value with inflation-indexed earnings

Rate is combination of fixed rate and an inflation rate based on CPI-U

Interest compounds semiannually for 30 years



Confused???Confused???When is the best time to cash in

your bonds?

How do you avoid costly mistakes with your savings bonds?

How does the average investor make dollars and sense of the Savings Bond Market?

Where can you find all the rules, values, interest rates all in one place?

LETS ADDRESS THESEIMPORTANT QUESTIONS!


Which to hold, which to cash inWhich to hold, which to cash in

*Expert Tips – The Three Biggest Mistakes

Cashing in a bond without knowing interest rates

Cashing in bonds based on purchase date

Forfeiting up to 6 months worth of interest• It was once reported by the Treasury Department that

$150 MILLION in interest is forfeited every year by cashing in bonds at the wrong time


How to Maximize Cashing InHow to Maximize Cashing In

Bonds post interest as of the first of the month and remain at that value throughout the month

If a bond only posts interest every 6-months, be sure to hold it until the next interest posting date – or you may forfeit the prior 6 months of interest! When is the interest posting date for my bond?

See the Savings Bond Guru Trial at the end of this webcast


Savings Bond Maturity DatesSavings Bond Maturity Dates

There are over $15,000,000,000$15,000,000,000 In Savings Bonds that have reached FINAL

Maturity and SHOULD HAVE been cashed in!

What is “Final” maturity?

How do you know when your specific bonds have reached “Final” Maturity?


The Difference Between Initial and Final MaturityThe Difference Between Initial and Final Maturity

Initial Maturity When a paper bond reaches

it’s FACE value printed on bond

Final Maturity When a bond STOPS

earning interest

*Expert Tip: The IRS REQUIRES you report the interest as of the final maturity…

Currently EE and I Bonds reach Final Maturity at 30 Years

EVEN IF YOU DO NOT CASH IN THE

BOND!!!


Taxation - EE and I BondsTaxation - EE and I Bonds Exempt from state and local income tax

Financial institution where you cash in your bonds will report your interest earnings to the IRS

IRS Form 1099-INT goes to you and the IRS when a bond is cashed

*Expert Tip: Watch out for the Tax Surprise When redeeming a bond, the difference of purchase price to

cash in value (which can be 4 to 6 times it’s face value) is reported as interest income


Find out what you need to know…Find out what you need to know…The Savings Bond GuruThe Savings Bond Guru

a service of a service of SavingsSavingsBonds.comBonds.com

Let’s take a look at theLet’s take a look at theSavings Bond Performance Report…Savings Bond Performance Report…


How do I get a free How do I get a free Savings Bond Performance Report Savings Bond Performance Report

for my bonds?for my bonds?

Go to http://www.SavingsBonds.com/BondGuru

Click on the red button “FREE TRIAL”!


We will now take your questions We will now take your questions about your Savings Bondsabout your Savings Bonds

You can submit your question either by email to

[email protected]

OR by using the Question button in the lower right of your

screen…


Thank you for attendingThank you for attending

Miss some info? When is the next Webcast? This presentation will be available on our site in a few days Next Webcast will be Wednesday – June 13th @ 1PM & 4PM EST We’ll be covering new topics like:

• The difference between a Co-Owner & Beneficiary• Proper titling of Savings Bonds• How to title bonds to MINIMIZE your taxable income• AND MORE!

REGISTER NOW!http://www.SavingsBonds.com/Webcasts

Submit your questions for the next Webcast: [email protected]


See you at the next webcast…See you at the next webcast…

Next Wednesday – June 13th @ 1PM & 4PM Eastern!


Documents

Welcome to Savings Bonds’s MAXIMIZING YOUR SAVINGS BOND INVESTMENT WEBCAST