Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, March 25, 1992                   TAG: 9203250101
SECTION: BUSINESS                    PAGE: A-7   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

SAVINGS BOND DRIVE UNDER WAY

U.S. Savings Bonds held five years or longer pay a guaranteed minimum interest rate of 6 percent.

Sometimes they pay more, depending on the market.

Long-term bonds, for instance, now yield 6.38 percent, although that rate will drop May 1.

Bond rates, however, lag the market going both down and up.

Earnings from U.S. Savings Bonds are exempt from state income tax, while federal taxes are deferred until they care cashed in.

And, for middle- and lower-income families, bonds used to pay the direct costs of college education, such as tuition, can be cashed in tax free. - Staff report