BANKING & FINANCE - Nov. 2, 1993

Interest Rate on Savings Bonds Drops: U.S. Savings Bonds will earn interest at a rate of 4.25% for the next six months, the lowest since the government began selling variable-rate bonds in 1982. The new rate, in effect through April 30, is down from 4.78% during the past six months. Rates are adjusted every May 1 and Nov. 1 to reflect changes in market-based rates. Newly purchased bonds held for five years or more earn an average of the market-based rates for the period or the minimum guaranteed rate, currently 4%, whichever is greater. The guaranteed rate on bonds purchased before last March 1 is 6%.