P.M. BRIEFING : U.S. Will Halt Sale of $50-$75 EE Bonds by Payroll Deductions
The Treasury Department said today that beginning next Oct. 1, it will not issue $50 and $75 Series EE savings bonds through payroll savings plans, making $100 bonds the minimum denomination for plan participants.
“This step is one of several initiatives that will assure the long-term strength of the savings bonds program by reducing administrative costs,” Richard L. Gregg, commissioner of the public debt, said in a statement.
The change does not affect over-the-counter sales at financial institutions where $50 and $75 bonds will still be available.
The Treasury said employees who currently buy $50 and $75 bonds will not be required to complete new bond authorizations. Instead, current allotments will automatically be applied to the purchase of $100 bonds.
The Treasury began phasing out $50 and $75 bonds from payroll savings in February, 1988, by no longer offering them to new enrollees.
Payroll savings allows employees to buy savings bonds on the installment plan through regular payments withheld from their paychecks. Bonds are issued when the price of a bond is accumulated.
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