QUESTIONS AND ANSWERS ABOUT SERIES EE
PATRIOT BONDS
Q. What
are Patriot Bonds?
A. Patriot
Bonds are Series EE savings bonds purchased through financial institutions or
over the Internet at the Savings Bonds Direct website. Bonds bought this way will be specially
inscribed with the words Patriot Bond.
Q. Where
can I buy Series EE Patriot Bonds?
A. You can place an order at any of thousands
of financial institutions serving as savings bond agents nationwide. If you are interested in buying Patriot
Bonds, it might be a good idea to contact your bank or thrift to ask if they
offer savings bonds. On line buyers can
order via Savings Bonds Direct at www.savingsbonds.gov
Q. When
will the Patriot Bond be available?
A. The Patriot Bond legend will be inscribed
on Series EE bonds beginning December 11, 2001 and will continue indefinitely.
Q. How do I buy a Patriot Bond?
A. It’s easy. All you have to do is order a Series EE bond at your financial
institution or over the Internet at www.savingsbonds.gov
and the bond you receive in the mail will be a Patriot Bond.
Q. Why is Treasury
designating these Series EE bonds as Patriot Bonds?
A. Many Americans expressed a desire to
express their support for the rebuilding and war efforts. The Patriot Bond is one way they can do so.
Q. Will the money I invest in Patriot Bonds be earmarked to pay for the
War on Terrorism?
A. No.
While the proceeds from the sale of all Treasury securities, including
Patriot Bonds, are deposited in the general fund and spent according to law,
the funds will contribute to the recovery and war efforts.
Q. What denominations are
being offered and how much do they cost?
A. The denominations are: $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000. The purchase price is: one-half the face
amount. For example, a $100 Patriot
Bond costs $50.
Q. Can
I buy a Patriot Bond as a gift?
A. Yes.
Like all savings bonds, every Patriot Bond has to bear a Social Security
Number (SSN) for record-keeping purposes but if you don’t know the SSN of the
person you’re buying the bond for, you can use your own. 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.
Q. How does the Series EE, Patriot Bond work?
A. Series EE savings bonds are U.S. Treasury
securities that earn 90 percent of market yields on 5-year Treasury
securities. 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.
Q. What about taxes on the interest earned?
A. Series EE bonds are free from State and
local income taxes. Federal tax on
interest earned can be deferred until you cash a bond or it reaches its 30-year
maturity, whichever happens first.
Q. Why can’t I buy Patriot Bonds through my
company’s payroll savings plan?
A. The centralized process we use to inscribe bonds bought through financial institutions made it possible to make the special Patriot Bond legend available quickly. By purchasing bonds through a financial institution or at the Savings Bonds Direct website Americans can make a positive expression of their support for the recovery and war effort. Bonds bought through payroll savings plans are processed by many different organizations using a variety of inscription techniques precluding Treasury from being able to offer the special legend for payroll customers.
Q. How can I find out more about the Series EE Patriot Bond?
A. Visit www.savingsbonds.gov
or ask your financial institution for more information.
Department of the Treasury
Bureau of the Public Debt
December 2001