Bond Teller 1101

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Bond Teller 1101 Powered By Docstoc
Volume 30                     No. 2 November, 2001 • D e p a r t m e n t o f t h e T r e a s u r y • B u r e a u o f t h e P u b l i c D e b t

A Message from the Commissioner                                                                  BOND TELLER MARKS
HAPPY 30th BIRTHDAY BOND TELLER!                                                                 30TH BIRTHDAY

                                                                                                         thirtieth birthday can be

                              he first edition of “The Bond Teller” came off the                         traumatic. But for “The Bond
                              press just about the time that I joined the Bureau of                      Teller” it’s a note-worthy
                              the Public Debt and began to learn the details of                  milestone to reflect on where we were
                        Savings Bonds myself. Its purpose was, and still is, to                  and how far we’ve come. The first
                        keep you, the folks who handle Savings Bonds well                        achievement is that the newsletter has
                        informed and thus better prepared to serve your Savings                  survived as a valuable resource for
                        Bonds customers.                                                         you. We’ve documented thirty years
                     The work you and your colleagues have done over the                         of history and changes in not only the
                     years is important, and most of all appreciated. To say                     products – savings bonds – but also
that things have changed in the 30 years since the first “Bond teller” would be                  the ways in which they’re processed.
an understatement.                                                                               Here are a few highlights of the
                                                                                                 Savings Bonds story, as recorded for
In the Savings Bonds program, for example, we have seen three new series of                      three decades in “The Bond Teller”.
bonds introduced and moved from manual handling and recording of bonds to
the streamlined processing of bond orders and redemptions.                                       The founding editor, Norm La
                                                                                                 Cholter, published the first issue of
Over the years you’ve helped millions of Americans save and invest for their                     our newsletter in October 1971. Three
future. More than $240 billion in bonds have been purchased over those                           other editors have guided the
thirty years!                                                                                    publication of “The Bond Teller”:
                                                                                                 Stephen Meyerhardt, 1972 to 1982
While much has changed, the key constant in the customer service equation is
                                                                                                 (currently Director, Washington
you: answering customers’ questions and helping them with their bond
                                                                                                 District, Savings Bonds Marketing
                                                                                                 Office), Kathy Litwak, 1983, and
You’ve taken care of bond owners with the whole gamut of savings bonds                           Sheila E. Nelson, 1984 to present.
transactions from issues, redemptions and exchanges to their need for more
                                                                                                 When the first newsletter was issued,
complex bond services.
                                                                                                 more than 40,000 different agents
I’d like you to know that we are continuously looking for ways to make your                      actually issued Series E bonds. That
work easier by offering you new tools to price bonds and to get the information                  meant they kept bond stock (actual
your customers need.                                                                             bonds and a registration stub for each
                                                                                                 to record the sale) under lock and
All of us at Treasury are grateful for your service. We also appreciate the
                                                                                                                 (Continued on page 2)
support of the thousands of banks and
thrift institutions that are the face of all                                     IN THIS ISSUE
Savings Bonds programs. Your hard             HAPPY 30th BIRTHDAY BOND TELLER! . . . . . . . . . . . . . .                  .   .   .   .   .   .   .   .   1
work and commitment to your                   BOND TELLER MARKS 30TH BIRTHDAY. . . . . . . . . . . . . .                    .   .   .   .   .   .   .   .   1
customers are key ingredients in the          UPDATE YOUR BondPro BY E-MAIL . . . . . . . . . . . . . . . .                 .   .   .   .   .   .   .   .   2
success of the Savings Bond program.          CASHING A U.S. SAVINGS BOND?. . . . . . . . . . . . . . . . .                 .   .   .   .   .   .   .   .   3
                                              QUICK CHECKLIST. . . . . . . . . . . . . . . . . . . . . . . . . . . .        .   .   .   .   .   .   .   .   4
Thank you,                                    HELPFUL LINKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     .   .   .   .   .   .   .   .   5
                                              SAVINGS BOND UNIVERSITY . . . . . . . . . . . . . . . . . . . .               .   .   .   .   .   .   .   .   5
                                              NOW THAT YOU ASK. . . . . . . . . . . . . . . . . . . . . . . . . .           .   .   .   .   .   .   .   .   6
                                              EVERYONE WOULD LIKE TO FIND UNEXPECTED MONEY .                                .   .   .   .   .   .   .   .   7
                                              REDEMPTION TABLE DATES TO CHANGE IN JUNE 2002 . .                             .   .   .   .   .   .   .   .   7
Van Zeck,                                     HOW TO FIND BOND VALUES FOR ANNUAL TAXES . . . .                              .   .   .   .   .   .   .   .   8
Commissioner of the Public Debt               CUSTOMER PRICING TOOL CHOICES . . . . . . . . . . . . . .                     .   .   .   .   .   .   .   .   8
BOND TELLER MARKS 30TH BIRTHDAY                                                       UPDATE YOUR BondPro
(Continued from page 1)                                                               BY E-MAIL

key, typed the owner’s information      program uses the check collection                   he Bureau of Public Debt is
on the bond, and handed it to the       system to process redeemed savings                  asking BondPro agents to
purchaser. For a time, Series H Bonds   bonds.                                              convert to the E-mail method of
were available                                                                        receiving updates to the tables of
through cash                                                       Online sales
                                                                                      redemption values for savings bonds.
sales as well as                                                   introduced
                                                                                      The most recent addition to the
through                                                            through Savings
                                                                                      BondPro pricing program, E-mail
exchange                                                           Bond Direct
                                                                                      updates, are now the preferred way to
transactions, as                                                   offer many
                                                                                      receive new bond value tables.
now. In 1980,                                                      bond
Series EE and                                                      purchasers the     Through the years, Public Debt has
HH Bonds                                                           flexibility of     supplied several savings bond pricing
replaced Series                                                    buying via the     tools. First, there were the paper
E and H Bonds.                                                     Internet.          redemption tables. Then, electronic
                                                                   Electronic         pricing started with the CRV (Current
The way                                                            pricing            Redemption Values) Program.
savings bonds                                                      programs,
earn interest                                                      starting with      In early 1999, the newest pricing tool,
has been                                Blast From the Past        CRV (Current       BondPro, was introduced. It was
revised several                         Top: The original          Redemption         designed to replace both the paper
times over the                          nameplate from 1971.       Value) and now     tables and CRV. BondPro replaces the
last 30 years.                                                     BondPro, are       redemption tables you’ve received for
                                        Editors past and
Each change                                                        popular            years. To get a paper table, you
                                        present (clockwise):
was intended to                                                    timesaving tools   simply print it from BondPro.
                                        Stephen Meyerhardt
improve the                             (1972 - 1982), Kathryn     for tellers.       BondPro also does everything CRV
attractiveness of                       Litwak (1983), Sheila E.                      does and more. To get a better look at
buying and                              Nelson (1984 - present). Will there be        the new tool, go to
holding savings                                               more                    and take the BondPro Tours.
bonds.                                  streamlining? Yes, of course. Will
                                        your customers continue to need your          Public Debt is committed to
The education bond program              help? Definitely. Can “The Bond               eliminating paper redemption table
introduced in January 1990 makes tax    Teller” newsletter continue to help           orders; BondPro is the replacement
benefits available for qualified        you? Certainly. Just ask. It is our           tool. The goal is to have all paying
persons using bond principal and        pleasure to serve. That’s the future.         agents using BondPro by May 2002.
interest for higher education.                                                   ❧                      (Continued on Page 8)

In September 1998 Treasury
introduced the I Bond, a series
indexed to protect bond owners’            Change of Address
savings against inflation.
In addition to substantive changes in
                                           Editor: Please change the mailing address
bonds, technology has definitely
changed, streamlining savings bond         From: (Recipient please affix old label here or provide the
procedures for everyone involved in        identification number printed above the address on the label.)
the sale, issuance, and redemption of
Through the implementation of RDS
and consolidation of servicing
locations, bonds are now issued only
through five Federal Reserve Banks:
Buffalo Branch of the Federal Reserve
Bank of New York, New York;
Minneapolis, Minnesota; Kansas City,       Please change the number of copies I receive
Missouri; Richmond, Virginia; and          from           to
the Pittsurgh Branch of the Federal
Reserve Bank of Cleveland. On the                          I no longer wish to receive “The Bond Teller.”
redemption side, the EZ Clear
                    CASHING A U.S. SAVINGS BOND?

• Your financial institution is required to cash savings bonds or notes eligible for payment for a
  customer with the required identification. Keep the check list on the reverse of this page for
  handy identification reference. For purposes of the check list customer is defined as any
  person presenting bonds for payment at your financial institution, whether or not they
  have an account with you.
• Payment to beneficiaries and legal representatives is optional.
• You may NOT cash bonds/notes for anyone acting under a power of attorney. Those
  transactions must be forwarded.

                                     Why This is Important

If you cash a bond or note incorrectly, your financial institution is liable for the loss (unless
Treasury determines the loss wasn’t due to fault or negligence on your part).


Log ID used.                                                Make adequate notation of the customer
                                                            identification used.
Over $1000, photo ID is not sufficient.                     If the total redemption value of the bonds
                                                            is over $1000, you must know your
                                                            customer. Photo identification is not
Verify account, open at least 6 months if used for ID.      Make sure the customer account has been
                                                            open a minimum of 6 months before
                                                            using the account for identification
Eliminate paying on the basis of a power of attorney.       Send the request and power of attorney
                                                            document to a Federal Reserve Bank.

For complete instructions concerning acceptable identification and adequate notations, see PD F
3900, Identification Guide For Cashing United States Savings Bonds.

                                                  QUICK CHECK LIST
     Check each bond to be sure it is eligible for payment.
     Is it a series you can cash?                 You may cash Series E, Savings Notes, Series EE and Series I.
     Is the issue date valid for series?          • Series E: May 1941 – June 1980
                                                  • Savings Notes: May 1967 – October 1970
                                                  • Series EE: January 1980 to date
                                                  • Series I: September 1998 to date
     Is the issue date at least 6 months            Bonds must be at least 6 months old to be eligible for redemption.
     prior to today’s date?
     Make sure you have a good request for payment.
     Is the customer named as owner or            You are required to cash bonds eligible for payment for an owner or co-owner
     co-owner on the bond?                        with adequate identification. If the customer is not named as owner or co-owner,
                                                  do NOT use this Quick Check List, see PD F 3900, Identification Guide For
                                                  Cashing United States Savings Bonds instead.

     Has the customer signed the request          If not, have the customer sign (or resign) the request.
     for payment in your presence?
     Does the signature EXACTLY match             • Some differences are obvious, e.g., Robert for Bob; just have the customer re-sign
     the name on the bond?                        • If it’s not obvious, ask.
                                                        · If the explanation makes sense, e.g., married name versus maiden name,
                                                          note the explanation with the signature.
                                                        · If the explanation doesn’t satisfy you, e.g., names spelled differently,
                                                          don’t cash the bond.

     Is the social security number on the         If not, have the customer enter his/her number on the back of the bond.
     bond the customer’s?
     Is the address on the bond the               If not, have the customer enter his/her current address on the back of the bond.
     customer’s current address?
     Require adequate identification.
     Does the customer have an account at         For identification purpose, an established customer must
     your financial institution.                       • have an account at your bank for at least 6 months and
                                                       • a signature on file that compares favorably to the signature on the bond.

     Is the customer with another person who      For identification purposes,
     is an established customer of your bank           • the source and duration of the acquaintance between the identifier and
     (with an account open at least 6 months)            customer must be such as to make the identification reliable (personal
     or is the customer someone known to an              identification based on casual acquaintance is not reliable, e.g. a brief
     officer of your bank?                               landlord-tenant relationship, or identifications made of patrons by owners
                                                         or employees of hotels, bars, restaurants, bowling alleys, etc.) and
                                                       • the identifier must know the customer by the name on the bond.

     Does the customer have one of the            For identification purposes, documentary identification is acceptable
     following forms of documentary                    • only for payments of $1000 or less,
     identification?                                   • if the picture and/or physical description compares favorably to the
     • Motor vehicle operator’s license                  customer,
     • State-issued identification card                • if the signature on the identification compares favorably to the signature on
     • Employer identification card                      the bond
     • Craft/trade license issued by state or          • if the document is countersigned or otherwise validated.
       local government, e.g., to barber, cab     For others types of documentary identification, see PD F 3900, Identification
       driver, electrician, etc.                  Guide For Cashing United States Savings Bonds.
     Make an adequate notation of the identification used.
     To be adequate, a notation must              SAMPLES:
     • be recorded on the bond or in a
       separate record at the time of             for account --- ., “Ck Acct 3421, 4/1/80”
       payment and                                for personal identifier --- “John Smith 98 Oak St, ex-college roommate, 10 yrs.”
     • be sufficiently detailed to permit, at a   for documentary identification --- “NY D/L A07346-99753-738826”
       later date, a determination of the exact
       identification used.

For complete instructions concerning acceptable identification and adequate notations, see PD F 3900, Identification Guide For
Cashing United States Savings Bonds.

HELPFUL LINKS                                                                                      SAVINGS BOND
Did you know there’s a savings bond website just for you? Our Financial                            UNIVERSITY:
Institutions’ home page is just a click                            HERE’S A NEW WAY TO
                                                                                                   LEARN ABOUT BONDS

                                                                                                           re you looking for a
                                                                                                           convenient way to learn about
                                                                                                           savings bonds, to learn how
                                                                                                   to handle bond transactions, and to
                                                                                                   better serve your customers? Then
                                                                                                   you need to enroll at Savings Bond
                                                                                                   Savings Bond University is the newest
                                                                                                   addition to our Internet site,
                                                                                                   providing some basic enrollment
                                                                                                   information, students can begin
You’ll find everything you ever wanted to know about U.S. Savings Bonds! The                       taking courses covering topics such as:
site offers bond pricing tools, information about issuing and redeeming bonds,                       • Features and Benefits of Savings
current rates, forms, answers to frequently asked questions, and much more... If                       Bonds
you can’t locate something, just e-mail us and we’ll be happy to help you.                           • Registering Savings Bonds
                                                                                                     • Purchasing Savings Bonds
                                                                                                     • Redeeming Savings Bonds
                                                                                                     • Reissuing Savings Bonds
                                                                                                     • Exchanging Savings Bonds
                                                                                                     • Replacing Lost or Destroyed
                                                                                                       Savings Bonds
                                                                                                     • Savings Bond Interest Rates.
                                                                                                   Each course takes less than 20
                                                                                                   minutes to complete and is followed
                                                                                                   by a brief quiz to test the student’s
                                                                                                   understanding of the subject matter.
                                                                                                   After passing all of the quizzes,
                                                                                                   students graduate from the Savings
                                                                                                   Bond University and are prepared
                                                                                                   with the same basic information that’s
                                                                                                   currently offered in the savings bond
                                                                                                   seminars offered by the Federal
                                                                                                   Reserve Bank. Students can work at
                                                                                                   their own pace—since it’s always
If you’re in a hurry and want to go directly to the source, use this handy quick reference list:   available online, they can complete
        Savings Bond Home Page                            Identification Guide                     courses when it’s convenient for them
                       or review courses when they need a
              Bond Teller                                  Current Interest Rates
                                                                                                   Savings Bond University also will
      Frequently Asked Questions                                 Forms                             provide online resources for           additional information, such as the
                                                        Training Opportunities
                                                                                                   Savings Bond Resource Guide, a page
                         of e-mail addresses for questions, a
                                                                                                   glossary of savings bond terms, and
     Savings Bond Resource Guide                          EZ Clear Information                     links to appropriate areas of our
                                                                                                   Internet site.
                  Savings Bond Home Page for Financial Institutions                                Stop by Savings Bond University
                                                                                                   campus today! You will find that
Clip this list and save it for future reference. Better yet, add these pages to your bookmark      learning about savings bonds has
or favorites list so you can get to them instantly.                                                never been easier or more convenient!

      he following are questions sent       Q: When I bought an I bond in July         Q: I have never been able to calculate
      to us by bondowners. Since            2001 I understood I would be getting       the same combined rate you publish
      Bond Tellers probably receive         5.92% for the first six months even        for I bonds. Can you tell me where on
similar questions we thought we             though that rate was announced in          the web I can find the formula that
would share the answers with you.           May 2001 and a new inflation rate is       you use?
                                            combined with my bond’s fixed rate
Q: If the announced earnings rate for                                                  A: The earnings rate is set by the
                                            in November 2001, before my bond is
Series I savings bonds we buy today                                                    following formula: Earnings rate =
                                            six months old. Is the initial rate for
is 5.92% per year, compounded                                                          [Fixed rate + 2 x inflation rate +
                                            my bond good for the first six months
semiannually, will the interest rate be                                                (Inflation rate x fixed rate)] x 100
                                            after I bought it, or does it change in
5.92% for the entire 30 years, or does
                                            November (and every May and                Formula details are shown at our web
the rate fluctuate every 6 months?
                                            November after that) when new rates        address:
A: The earnings rate is subject to          are announced?                             sav/sbirate2.htm
change every 6 months. For the bonds
                                            A: Your I bond issued in July 2001 has     Q: Why wouldn't the "Yield to Date"
you’re referring to – Series I savings
                                            an earnings rate of 5.92% per year,        for my 6-month old Series I savings
bonds issued in the months of May
                                            compounded semiannually, for the           bonds be the same as the composite
through October 2001 – the earnings
                                            first six months – that is, from July 1,   earnings rate announced for those
rate is 5.92% per year, compounded
                                            2001 to January 1, 2002. The new           bonds just prior to when I bought
semiannually, for the first 6 months
                                            semiannual inflation rate announced        them?
only. Each Series I savings bond
                                            as of November 1, 2001, will be
interest rate has two parts: a fixed rate                                              A: For Series I savings bonds that are
                                            combined with your bond’s fixed
that is that bond’s fixed rate for thirty                                              less than 5 years old, the redemption
                                            rate – 3.00% per year, compounded
years and an inflation rate that                                                       values and any yields to date shown
                                            semiannually – to produce your
changes every six months.                                                              in paper and electronic tables reflect a
                                            bond’s earnings rate for the second
Q: How is a semiannual inflation rate       six months – January 1, 2002, to July 1,   3-month interest penalty. So the yield
determined?                                 2002. The new semiannual inflation         to date for the first 6 months would
                                            rate announced as of May 1, 2002, will     be less than the announced composite
A: A semiannual inflation rate is the       be combined with your bond’s fixed         earnings rate because the yield to date
percentage change over six months in        rate to produce your bond’s earnings       reflects earning only 3 months’
the non-seasonally adjusted                 rate for the period July 1, 2002, to       interest over 6 months. If you keep an
Consumer Price Index for all urban          January 1, 2003.                           I bond for at least 5 years, there is no
consumers: U.S. City Average for All                                                   longer any 3-month interest penalty.
Items (CPI-U).                              Q: I have Series I savings bonds I
                                            bought just over 6 months ago. I think     Q: How is Series I savings bond
Q: Does the bond owner have a               your online Savings Bond Calculator        interest compounded? For example, if
choice of receiving a “fixed rate of        at is really          a $100 I bond earns interest of $1.00 in
return” or a “semiannual inflation          convenient and easy to use, but no         the first month. Is the interest
rate” that varies every six months?         matter how I use it, I get a value that    calculated on the $100 or the $101.00
                                            is considerably below what I would         amount for the second month?
A: No, our most recent measure of
inflation (the latest semiannual            have expected. Why?                        A: Interest is compounded
inflation rate) is combined as of each      A: Series I savings bonds that are         semiannually. During your bond's
May 1 and November 1 with a bond’s          redeemed before they're 5 years old        first 6 months, interest is based on the
fixed rate to get the bond’s earnings       are subject to a 3-month interest          amount you paid for the bond.
rate for a six-month period.                penalty. This means that if you            During the second six months, the
                                            redeem your I bond when it's 6             bond earns interest based on what
Q: Your online information at
                                            months old, its redemption value will      you paid plus your first six months of says if you
                                            include only the first 3 months'           interest.
redeem a Series I savings bond after
18 months, you'll get 15 months' of         interest. An I bond cashed when it's       If your customers ask other questions
earnings. Is this the first 15 months, or   28 months old includes the first 25        about savings bonds, let us know by
the latest 15 months?                       months' interest. The redemption           sending their questions to: Sheila
                                            values shown by the Savings Bond           Nelson, Editor, The Bond Teller,
A: The first 15 months’ interest is         Calculator are redemption values you       Bureau of the Public Debt, 999 E
included in an I bond’s redemption          would get if you cashed your bond on       Street NW, Washington, DC 20239.
value if cashed when it's 18 months         the redemption date or "value as of"
old. The latest 3 months' interest is       date you select when using the
not included.                               Savings Bond Calculator.

EVERYONE WOULD LIKE TO FIND                                                          REDEMPTION TABLE
UNEXPECTED MONEY                                                                     DATES TO CHANGE

        re your customers asking if       your customers to cash their bonds
        their savings bonds are still     and reinvest the proceeds so they can
                                                                                     IN JUNE 2002

        earning interest? Maybe they      get their money working for them              n June 2002 redemption table
didn’t receive a gift someone sent        again. Information is added to this           publishing dates will change. The
because the bonds had the wrong           program each month, so customers              change will be made because of
address and the postal service has        should check the website more than         the way interest accumulates on
returned them as undeliverable.           once.                                      bonds issued since May 1997. These
Maybe they have forgotten that they                                                  bonds are subject to a three-month
                                          Because bond owners have                   interest penalty if they are cashed
own bonds or that they should be
                                          successfully used “Treasury Hunt” to       before they are five years old.
receiving interest on their current-
                                          find undelivered savings bonds and
income bonds.                                                                        With the penalty in place, there was a
                                          savings bond interest, the Bureau of
There is a way your customers can         Public Debt expanded it to add paper       four-month period between the dates
find out about their Treasury security    registered marketable security             when we announced new interest
holdings. Give them a hot tip … it’s      records. Last July, approximately          rates (May and November of each
called “Treasury Hunt”.                   10,000 accounts with matured               year) and the dates when those rates
                                          unredeemed registered securities           first showed up in a bond’s
The Bureau of Public Debt’s               were added to the system. These are        redemption value (September and
“Treasury Hunt” website program           marketable Treasury notes and bonds        March of each year).
was designed to help people find out      issued before August of 1986 that pay
whether they have savings bonds that                                                 The first bonds sold under these
                                          a fixed rate of interest every six         terms will reach the five-year point in
have matured (stopped earning             months until the security matures.
interest), whether the Treasury is                                                   May 2002. When these bonds are no
                                          These unredeemed marketables total         longer subject to penalty, we’ll only
holding a bond in their name that the     about $54 million.
postal service couldn’t deliver or an                                                see a one-month period between the
interest payment that couldn’t be         To complete a search on marketable         dates of the new interest rates (May
delivered to their bank account and       securities or savings bond accounts        and November) and the dates these
that was returned as undeliverable.       customers should provide a taxpayer        rates first affect a bond’s redemption
And, as of last July, something new       identification number (TIN) and other      value (June and December). For this
has been added. Your customers can        registration information. If there is a    reason future six-month tables will be
search for information on matured         potential match, on a matured              dated June through November and
unredeemed registered Treasury            savings bond, an undeliverable             December through May.
notes and bonds.                          savings bond, a held interest account      The redemption tables that are now in
                                          or an unredeemed marketable                effect are dated September 200l
When customers mention savings            Treasury note or bond, the Bureau of
bonds or marketable security                                                         through February 2002. A transition
                                          Public Debt staff will follow up after     table good for three months will be
accounts, tell them to visit “Treasury    the customer provides some
Hunt”. A search can be initiated by                                                  issued in March 2002. This will be in
                                          information. One thing the program         effect through May 2002. The new
clicking on the “Treasury Hunt” icon      will not do, however, is search and
on the Savings Bond website,                                                         six-month tables will be issued in
                                          provide information on lost bonds.         June 2002.
                                          Public Debt will regularly add to          Copies of the abbreviated redemption
Besides finding your customers’           “Treasury Hunt”. Encourage
money the goal of “Treasury Hunt”                                                    tables, PD F 3600, will be issued on
                                          customers to visit the website             the same schedule. Customers may
also is to help Public Debt find often. This
owners of unclaimed bonds. Investors                                                 request copies from: Bureau of Public
                                          site contains several other                Debt, Parkersburg, WV 26106-1328.
enter their identification information    applications to help bond owners
on the website, and the database is                                                                                           ❧
                                          determine the value of their savings
searched. While over 99 percent of        bonds, final maturity dates, interest
matured bonds have been cashed,           accrual dates and yield information
those still outstanding are worth         and much, much more.                  ❧
more than $8 billion. Your customers
can check “Treasury Hunt” to                                     CURRENT BOND INFORMATION
identify and ultimately claim bonds            Current savings bonds information can be obtained by calling the toll-free
or interest payments not received. Or,       recording 1-800-4US-BOND (1-800-487-2663). The caller receives a choice
they may find that they have matured          of five messages in either English or Spanish. Subjects covered are: Series I
bonds that have stopped earning                   rates, Series EE rates, bond maturities, a mailing address to write for
interest. If that is the case encourage                       information or forms, and an internet address.
                                                                                          HOW TO FIND BOND
CUSTOMERS HAVE PRICING TOOL CHOICES                                                       VALUES FOR ANNUAL

           hat pricing tool do you      On this site,      TAXES
           suggest to customers who              your customers can find links to two

                                                                                                    any bond owners report
           want to calculate their               electronic pricing programs, the                   their Savings Bond interest
savings bonds values at home? As a               Savings Bond Calculator and the                    earnings to the Internal
financial institution, you may use our           Savings Bond Wizard. While there are     Revenue Service annually (accrual
BondPro software; however, it’s not              many similarities between the            basis) rather than deferring the
available to the general public.                 Calculator and the Wizard, the           reporting until the bonds are cashed
Instead, point your customers to the             differences will determine the best      (cash basis). Now there are two ways
Bureau of the Public Debt’s website              tools to meet your customer’s needs.     to calculate the annual interest
         Features              Online Calculator             Savings Bond Wizard          If your customers have access to the
 Operating Systems                        Most                    Windows Only            Internet, they can calculate annual
                                                                                          interest earnings online using the
                                                               On your computer’s         Savings Bond Calculator. It’s fast and
 Where program resides                Online                       hard drive
                                                                                          easy to use...the perfect tool for
 Current value, interest,                                                                 customers who complain about
                                           ✔                            ✔
 final maturity date                                                                      looking up earnings for a $500 bond
 Series E, EE, I, and                                                                     in a table that shows earnings for a
                                           ✔                            ✔
 Savings Notes                                                                            $50 bond. The Calculator does the
 Series H and HH                          No                            ✔                 math for them, and it even allows
                                                                                          them to save their inventories for the
 Current Interest Rate                     ✔                           No                 next year.
 Yield From Issue                         No                            ✔                 To calculate annual interest earnings
 Sort                                     No                            ✔                 in tax year 2001, simply enter
                                                                                          “12/2001” in the “Value as of” box,
 Edit                                     No                            ✔
                                                                                          enter the series and issue date of the
                               Automatic when file is          Done from within the       bond, then click “Add”. The value
 Updating inventory                 retrieved                    program by user          returned under “YTD Interest” shows
 Past redemption values            Back to 1996                    Back to 1992           the amount of interest earned that tax
                                                                                          year. For complete instructions, visit
                              Can slow down as pages                             and click the
 Good for a lot of bonds?                                               ✔
                                   are generated                                          “Savings Bond Calculator” link or go
Only your customer will know which of the two programs is right for them.                 directly to:
Pointing them to Public Debt’s website is definitely a good start.                        sav/savcalc.htm.
                                                                                          Persons who do not have a computer
                                                                                          can get annual interest earnings from
                                                                                          form PD F 3501, “A Comparison of
                                                                                          Year End Values from December 31,
UPDATE YOUR BondPro BY E-MAIL                                                             2000 to December 31, 2001”. This form
                                                                                          can be obtained by writing to the
(Continued from Page 2)                                                                   Bureau of the Public Debt,
Thanks to you, our agents, we’re               Thousands of agents still use the          Parkersburg, WV, 26106-1328.
getting closer and closer to that goal.        diskette method to receive the new
We continue to contact agents to               redemption values every six months.                                                ❧
change their pricing method and to             Since the inception of BondPro, it was
change their method of receiving               Public Debt’s goal to e-mail you
updates.                                       updated tables, but the process was
                                                                                            The Bond Teller is a publication of
                                               not ready until this year. Now, we’re        The Department of the Treasury
Currently, you can receive updates by          encouraging BondPro agents to make           Bureau of the Public Debt
diskette, by going to the website and          the conversion. You can anticipate our       Washington, D.C. 20239
directly downloading them yourself             call or help us out by contacting us
or by receiving an e-mail message that         today! E-mail:                               Editor: Sheila E. Nelson
has a link to the updates (click on the Phone: (304)
link and the download starts).                 480-6888 Fax: (304) 480-7959.
                                                                                                                         SB 2369