State About to Sell More ‘College Saver’ Bonds : Investing: Another $50 million of the popular tax-free bonds are expected to go on sale Sept. 17. But interest rates are lower than at the last sale.

State Treasurer Kathleen Brown is expected to announce today that the second sale of the popular, tax-free “college saver” state bonds will be held Sept. 17.

State construction bonds valued at $50 million will be sold on a first-come, first-served basis through 17 brokerage houses throughout the state. Presale orders will be accepted at the brokerages from Sept. 11 through Sept. 13.

The bonds will be sold in denominations of $1,000 in value at maturity, with a maximum purchase of $15,000 per person. Maturity dates will vary from eight years to 22 years. Interest rates carried by the bonds will be set the day of the sale.

Despite their name, the bonds, which were sold for the first time last October, do not have to be used to finance a child’s college education. In fact, the bonds carry no restrictions on their use, a fact that has made the bonds especially popular among taxpayers looking for a tax-free shelter for their retirement funds.

For all practical purposes, the college saver bonds are no different from traditional zero-coupon state and municipal bonds. All are exempt from state and federal taxes and all pay interest only upon maturity. However, because the bonds will be sold in minimum $1,000 increments, these bonds have proven especially attractive to savers who cannot afford the typical $5,000 minimum investment required for regular state and municipal bonds.

Last year’s sale was sold out within days of issue. However, analysts said this year’s sale may prove less attractive to investors because interest rates have dropped considerably in the last several months and taxpayers may be reluctant to tie up their money for a minimum of eight years at lower rates.