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FED ER A L R ESERVE BANK O F N EW YORK Fiscal Agent of the United States I- Circular No. 7299 "1 LDecember 20, 1973J U N IT E D S T A T E S S A V IN G S B O N D S Savings Bond Rate Increased to 6% To Issuing and Paying Agents for United States Savings Bonds in the Second Federal Reserve District: The following statement was issued December 10 by the Treasury Department: The White House announced today that all Series E and H Savings Bonds purchased on or after December 1 will earn 6% when held to maturity. Savings Bonds have been earning 5-1/2% when held to maturity. The annual rate on Savings Bonds and Savings Notes now outstanding is also increased by the same amount. Twenty-three million Americans presently holding more than $60 billion in Savings Bonds and Notes will receive an additional 1/2% return on their present Bonds. No action on the part of Savings Bond or Note holders is necessary to take advantage of the higher rate. Commenting on the increase, Treasury Secretary George P. Shultz noted that the Savings Bond program has been a cornerstone of Treasury’s debt management program and that the new rate was made possible when Congress, while providing a new debt limit, also clarified the authority of the Treasury to pay the higher rate. The maturity of Series E Bonds sold after December 1 will be shortened from 5 years 10 months to 5 years. The purchase price of new Bonds will remain unchanged, and Bonds will remain available with maturity values from $25 to $1,000. Additional copies of this circular will be furnished upon request. Alfred Hayes, President.
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