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    1) ADVANTAGES OF OWNING SAVINGS BONDS

      1.1) I'm considering investing in Treasury securities. What are the advantages of owning Savings Bonds?

      You can buy Savings Bonds for a small amount of money--the minimum investment is $25 when buying through financial institutions. They're lower risk than most investments since both principal and interest are guaranteed by the full faith and credit of the United States, and lost, stolen, or destroyed bonds can be replaced. They're convenient--you can buy Savings Bonds through most financial institutions, through payroll savings plans, and through the EasySaver Plan. There are no commissions or similar fees. Interest is exempt from state and local income tax and federal income taxation can be postponed until you cash your bond or until it stops earning interest in 30 years.

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    2) BUYING SAVINGS BONDS

      2.1) How do I buy Series EE and/or Series I Savings Bonds?

      You can buy Series EE and/or Series I Savings Bonds through most local banks. Banks accept applications and payment for bonds and forward them to a Federal Reserve Bank, where the bonds are issued and mailed to the owner. Bonds are delivered within 15 business days, and the bond's issue date reflects the date of application so no interest is lost. Banks also have gift certificates that bond buyers can give to gift recipients to let them know a bond has been ordered for them. Bonds can also be bought through the Payroll Savings Plan offered by many employers and through the EasySaver Plan.

      2.2) How do I buy Series HH Savings Bonds?

      HH bonds are available -- through exchange of Series EE/E bonds and Savings Notes with a total redemption value of at least $500, or with the proceeds of a matured Series H bond -- at Federal Reserve Banks that handle Savings Bonds.

      2.3) I noticed Savings Bonds are being sold through auction sites such as eBay™, but I thought ownership was non-transferable. How does this work?

      Savings Bonds are sometimes sold as souvenir or collectors' items. The sale doesn't affect the ownership of the Savings Bond, since by regulation, a Savings Bond is a registered security and ownership is nontransferable The United States Treasury still has a contractual relationship with the owner or co-owners named on the bond, not the person who bought the bond at auction. Because of this, the person buying it at auction can't cash it--he's just purchased a piece of paper showing a bond that still belongs to the owner or co-owners named on the bond. In some cases, the bond may belong to the United States Treasury, if it's a bond that was lost and has since been replaced. Bottom line: it's not a good idea to buy a Savings Bond at an auction, because you do not acquire any title to the bond or have any ownership rights.

      ™ is a registered trademark of eBay Inc.

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    3) DUPLICATE SAVINGS BONDS

      3.1) What should I do if I receive a duplicate Savings Bond in the mail?

      Please return it to a Federal Reserve Bank that handles Savings Bond transactions or the Bureau of the Public Debt (P.O. Box 1328, Parkersburg, WV 26106-1328). It would help us if you could include a letter with the bond stating you're returning it because it was a duplicate.

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    4) CHAIN LETTERS AND SAVINGS BONDS

      4.1) I received a chain letter and am supposed to buy a Savings Bond for someone listed in the letter. Should I participate?

      No. Buying Savings Bonds as part of a chain letter or similar pyramid scheme is considered to be against the public interest and is prohibited.

      4.2) I bought a Savings Bond as part of a chain letter and now I don't want to participate. What can I do?

      If you buy a bond for someone named in a chain letter and then decide to keep the bond and not participate, you can apply for a refund of the purchase price by completing and signing Public Debt Form 2966. Send it with the bond to the nearest Federal Reserve Bank that provides Savings Bond services. You should apply for your refund quickly because, although you may be able to get your purchase price refunded, you won't receive any interest on the bond.

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    Keep in mind that these questions may not fit all situations and are only intended as guidelines. Please visit the Savings Bonds website at www.savingsbonds.gov, or see your organization's Savings Bonds contact if you have any questions.