For the past six decades, Savings Bonds have been a safe, secure and affordable way to save hard-earned dollars. Over the years, tens of millions of people have used Savings Bonds to purchase first homes, fund college educations for their children, and provide a means to save for retirement. In the aftermath of the events of September 11, the world has witnessed the unity and resolve that have made our nation strong in the face of adversity. This year, we can also help to ensure that our nation is safe by investing in America through the purchase of U.S. Savings Bonds.

Through the Savings Bonds Payroll Savings Plan, a small portion of your pay is automatically directed toward the purchase of Savings Bonds. The plan is designed to fit your financial needs, so that the money is not missed. Whether you purchase Series EE Bonds, or the inflation-indexed Series I Bonds, they are backed by the full faith and credit of the United States government. If your Savings Bonds are lost, stolen or destroyed, replacement is guaranteed. Savings Bonds offer competitive rates of return. They also offer unique tax advantages. Interest is exempt from state and local income taxes, and federal tax is deferred until bonds reach final maturity or are redeemed. In addition, their special tax benefits make it possible for some investors, who might not otherwise be able to do so, to save for their children's education. The Office of Payroll Administration explains the difference between the Series EE and Series I Bonds, to help you determine which Savings Bonds are right for you. A wide variety of free software is available at the Savings Bonds, to help you maintain a record of your Savings Bonds holdings, and determine their value and maturity dates. You may also take your bonds to your local bank to research the current market value.

During the annual Savings Bonds Campaign, from June 1 to June 30 of each year, your Savings Bonds Coordinator will give you more information about Savings Bonds. We urge you to read the material carefully, consider how the Savings Bonds Payroll Savings Plan can enable you to save money at a rate that fits your individual needs, and then join the program, or, if you are already enrolled, increase your savings rate or add an additional Savings Bonds option.

Savings Bonds are among the best tools available to save for your future. They are the most widely held security in the world. Many Americans start to save with the purchase of Savings Bonds. Please take that important first step and start to save by joining the Savings Bonds Payroll Savings Plan.