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Fed eral r eser ve bank of Da l l a s F IS C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS. TEX A S 75222 May 2 7 , 1966 To A ll Banking Institutions and Others Concerned in the Eleventh Federal Reserve D istrict: There is quoted below a press statement issued bytheTreasury Department on May 2 3 , regarding an increase in the interest rate on United States Retirement Plan Bonds to be effective June 1 , 1966. N W RETIREMENT PLAN B N INTEREST RATE E OD The Secretary of the Treasury announced today that the President has approved an increase in the interest rate on United States Retirement Plan Bonds to i+.15 percent per annum, compounded semiannually, effective June 1 , 1966. Previously, these bonds earned interest at 3*75 percent. The improved rate brings the interest on Retirement Plan Bonds in line with the recently increased rate on Series E and H Savings Bonds. However, unlike those bonds, the improve ment does not apply to Retirement Plan Bonds already outstand ing. It was explained that there is no statutory authority to extend the new rate to bonds issued earlier. Retirement Plan Bonds, which were fir s t placed on sale in 1963 pursuant to the Self-Employed Individuals Tax Retirement Act of 1962, are available for investment only by bond purchase plans and qualified pension and profit-sharing plans. They may be registered only in the names of s e lfemployed persons or employees in single ownership form, or with a beneficiary. Purchases may be made at any Federal Reserve Bank or Branch, or the Office of the Treasurer of the United States, the only authorized issuing agents. The related F irst Amendment to the governing Treasury Department Circular, Public Debt Series No. I-6 3 , w ill be distributed as soon as it is available. FEDERAL RESERVE BANK O DALLAS F Fiscal Agent of the United States This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)