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Saving Bonds were introduced by Henry Morgenthau, Jr in America as a new type of security. President Franklin signed the legislation that allowed the U.S department of treasury to sell this type of bond. It had a face value of $25 but also had a low purchase price of $18.75. The series of saving bonds known as Series A, B,C, or D were sold from 1935-1945 and were known as the 'Baby Bonds'.
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When the U.S entered WW2 the president introduced the series E type of bond to help fund the war. He also bought the first bond from Henry Morgenthau,after making it available for the public to buy. When Pearl Harbour got attacked they became known as war savings bond. At this time war stamps were also introduced so people can also give small donations.The "Minute man of Concord" sulpture became the symbol of the U.S savings bond program.
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To help the costs of the war the Treasury Department used propaganda to target farmers, women and other americain workers. Plus, war bonds were allowed to be purchased through payroll deductions and now this is known as the payroll savings plan.
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Artist, entertainers and schools helped the war effort. For example, a painting called 'Four Freedoms" raised $130 million for the war bond. Plus, movie premiers occasionally allowed people who purchased a bond. In addtion to that stars and touring shows also encouged people to buy bonds. Schools also bought bonds throught the "School at War" program which helped purchase 90,000 jeeps for the war.
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At this time more Americains bought saving bonds and sold them. However many did not sell their bonds to allow their savings to grow.
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The entertainment industry promoted saving bonds by sending the message through tv shows to buy bonds. This was done to keep the sales of bonds high during the post war era.
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These bonds gave an income bond that payed interest every six months, and earned interest for 30 years.
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This type of bond ended at most post offices except for communities with no local bank near them.
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The U.S Industrial payroll savings commitiee brought by the admistration of President Kennedy encouraged payroll savings through campaigns. Its first campaign brought the largest amount of people who enrolled in the payroll savings bond since WW2. In addition to that retirement plan bonds were offered.
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During World War II, the nation was rising in debt. The Treasury department noticed that they needed a larger finance mechanism and decided to expand the saving bond program. They collaborated with the film industry and produced a short film about the nation's history and geography called " The Land We Love" The idea encouraged the American citizens to join the program and start investing.
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Saving Notes also known as Freedom Shares were introduced. These Saving notes were available with the combination of Series E bonds wither either the same or greater denominations. Which were offered in four denominations; $25, $50, $75 and $100. This encouraged the Americans to invest in the country.
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The Saving Notes were discontinued.
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The Series E saving bonds new requirement from the issuing agents were to include the owner's or first- named co-owners, social security number on all Series E saving bonds that were issued from October 1, 1973 or later.
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President Gerald R. Ford purchased the first printed Bicentennial- designed Series E savings bond from the Secretary of the Treasury, William E. Simon.
Bicentennial bonds were issued until 1976 -
The Series E bonds that was created in 1966 were discontinued and were replaced with the Series EE savings bonds.
They are still being issued today. -
The market interest rate for the accrual- type Series EE savings bonds were changed. The Treasury changed the rate offer towards investors only on a fixed rate basis. Cash sale of Series HH saving bonds were discounted and they were only allowed to be exchanged for the accrual-type saving bonds.
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The Treasury officially released a new design for the Series EE and HH saving bonds. They were a part of a gradual shift, from punch cards to paper bond stock.
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A schedule was issued for the bonds final maturity dates.
Series E bonds issued before December 1965 will stop earning interest 40 years from their original issue date.
Series E, Series EE and Savings Notes issued after November 1965, will stop earning interest 30 years after the issue date.
Series HH issued since 1980 will stop earning interest 20 years from the issue date. -
Series EE saving bonds interest rates originally at 85% was increased to 90%. This included the average yield on 5-years Treasury securities and interest every month.
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Series I Bonds were issued.
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The launch of the Treasury Hunt website was officially on the internet.
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Series I saving bonds were offered as an electronic version. This new web book-entry saving bonds was the called the TreasuryDirect system. It was designed to help investors to be able to do the one-stop for buying and managing the Treasury securities. The electronic and paperless form of the Series I bond was the first to make it to the public.
The annual purchase limit was increased to $30,000 both on paper and web for the Series I saving bonds, 2 days after the release of the paperless form. -
The Series EE saving bond was added to the website TreasuryDirect. 2 days later the annual purchase limit was increases to $30,000 making the electronic versions of saving bonds more consistent.
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The limit for annual saving bonds purchased decreased $25,000. From $30,000 to $5,000 per social security number. Although there is a limit, the limits apply separately to Series EE, I saving bonds and online and paper bonds.
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Earlier in this year people could buy the paper Series I savings bond by checking a box on their tax return without having to go through the prosess of opening an account. However on September 30, 2010 the purchase of these bonds through payroll sales were cancelled for federal employees.
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Sales for these types of bond ended with one exception. Taxpayers who use some of their tax funds to buy bonds are able to use paper bonds. This change was done to support Treasury's goal to make more citizens and businesses to use electronic transations.
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Annual purchase limit for these online bonds increased to
$10,000 per series. This means people can buy up to $10,000 worth of saving bond of each series ellectronically in a year or a total of $20,000. However an invester can still buy up to $50,000 worth of Series I paper savings bond through their tax refunds, annually.
