03-P-034 Savings Bonds Holding Periods

DATE:	January 23, 2003
SUBJECT:	Savings Bonds Holding Periods
EFFECTIVE DATE:	February 1, 2003
CONTACT:	Janice Wolfley	(785) 296-3699	Janice.Wolfley@da.state.ks.us
APPROVAL:
SUMMARY:	Minimum Holding Period for Series EE and I Savings Bonds is being extended to 12 months

The Federal Reserve Bank of Kansas City has notified Payroll Services that effective February 1, 2003 the holding period for newly issued Series EE and I U.S. Savings Bonds will be extended from six months to 12 months. Therefore, Series EE and I Savings Bonds with a February 2003 or later issue date cannot be redeemed until they are at least 12 months old. In addition, Series EE Savings Bonds with a February 2003 or later issue date cannot be exchanged for Series HH Savings Bonds until they are 12 months old. Although the extension of the holding period pertains to both Series EE and I Savings Bonds, agencies are reminded that only Series EE Savings Bonds are available through payroll deduction for State of Kansas employees. The information concerning the I Bonds is being shared for those employees who purchase I Bonds through some other mechanism.

Employees who have questions concerning this change are encouraged to visit the www.savingsbonds.gov web site or to contact the Kansas City Savings Bond Department at (800) 333-2919.

DB:JJM: rdb