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Why it’s wise to
By Homer J. Livingston, President of
The First National Bank of Chicago and
President, American Bankers Association
Like millions of other Americans, you
probably know that our government’s Series
E Savings Bonds rank among the surest,
safest and best investments in the world. But
I wonder if you realize that an extremely
attractive feature has been added to them.
Today, you no longer need cash your Bonds
at maturity (9 years, 8 months after pur
chase) . You can hold them for as long as 19
years, 8 months. And this enables you to get
a far greater total yield from them, since the
interest paid on Savings Bonds is cumulative.
That is to say, your Bonds pay interest not
only on the principal, but on the accumu
lated interest itself! Now, the longer you hold
your Bonds the bigger this accumulation gets
—and, correspondingly, the more money
your Bonds pay in interest every year.
1! you invested $37.50 in a Savings Bond ten
years ago, it could be redeemed for $50.00
today. You would make $12.50. But if you
keep that Bond for ten more years, you will
make a total of $29.84 on your original in
vestment. In other words, if you hold your
U. S. Savings Bonds for double their original
period, your total yield is considerably more
than just double.
So, if you can possibly arrange it, hold your
Bonds for the maximum period—19 years,
8 months. You don’t have to sign any papers
or visit your bank to do this. The extended
earning period is automatic.
And, of course, go on investing in U. S.
Series E Savings Bonds—through the Pay
roll Savings Plan where you work. If self
employed, invest in Savings Bonds regu
larly where you bank.
Want your interest paid as
current income?
Invest in 3% Series H.
United. States Government Series H
Bonds are new current income Bonds
in denominations of $500 to $10,000.
Redeemable at par after 6 months and
on 30 days’ notice. Mature in 9 years, 8
months and pay an average of 3% per
annum if held to maturity. Interest
paid semiannually by Treasury check.
Series H may be purchased through
any bank. Annual limit: $20,000.
This chart
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tiW«d Maturity Vatu*. .
Original Maturity Volu*. .
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100.00
Pariad AHtr Maturity Data
UtmyHtn Vatu*«
During iadi V*ar
Vi la 1 year....
1 V» ta I yaon..
J'/j la I yaan..
J'/i ta 4 yuan..
4% la S yuan..
S'/l la 6 yaan..
6’/, la 7 yaan..
7Va la • yaan..
• Vi la 9 yaan..
9'/, la 10 yaan.
EritnM maturity valua
(10 yaan (ram original
maturity dot*).
$101.90
104.50
107.40
110.40
114.00
11790
121.20
124.40 *
124 60
13290
134 64
Now even better!
Invest more in Savings Bonds!