31 C.F.R. Subpart B—Definitive Series I Savings Bonds
Title 31 - Money and Finance: Treasury
Definitive bonds are issued in denominations of $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000. These bonds are sold at par; that is, the purchase price is the same as the denomination (face value). A definitive bond is validly issued when it is registered as provided in part 360, and when it bears an issue date and the validation indicia of an authorized issuing agent. The issue date of a definitive bond is the first day of the month in which an authorized issuing agent receives payment of the issue price. The registration of a definitive Series I savings bond must include the TIN of the owner or first-named coowner. If the bond is being purchased as a gift or award and the owner's TIN is not known, the TIN of the purchaser must be included in the registration of the bond. [71 FR 46857, Aug. 15, 2006] The principal amount of definitive bonds that may be purchased in the name and TIN of any person, in any calendar year, is limited to $30,000. We compute the purchases of bonds in the name of any person in an individual capacity separately from purchases in a fiduciary capacity (for instance, as representative for the estate of an individual). In computing the purchases for each person, we include the following outstanding definitive bonds purchased in that calendar year: (a) All bonds registered in the name of and bearing the taxpayer identification number (TIN) of that person alone or as co-owner; (b) All bonds registered in the name of the representative of the estate of that person and bearing that person's TIN; and (c) All gift bonds registered in the name of that person but bearing the TIN of the purchaser. In computing the purchases for each person, the following are excluded: (a) Bonds on which that person is named as beneficiary; (b) Bonds to which that person has become entitled upon the death of the registered owner; (c) Bonds to which that person has become entitled by virtue of the termination of a trust or the occurrence of a similar event; and (d) Bonds that are purchased and redeemed within the same calendar year. If you have bonds issued during any one calendar year in excess of the prescribed maximum amount, we reserve the right to take any action we deem necessary to adjust the excess. You should obtain instructions for adjustment of the excess from the Bureau of the Public Debt, Parkersburg, WV 26106–1328, or e-mail at [email protected]. You may purchase definitive bonds over-the-counter through any participating issuing agent.4 4 However, an organization serving as an issuing agent because of its status as an employer or an organization operating an employer's payroll savings plan under §317.2(c) may sell bonds only through payroll savings plans.
Title 31: Money and Finance: Treasury
PART 359—OFFERING OF UNITED STATES SAVINGS BONDS, SERIES I
Subpart B—Definitive Series I Savings Bonds
§ 359.25 What are the denominations and prices of definitive Series I savings bonds?
§ 359.26 When are definitive Series I savings bonds validly issued?
§ 359.27 What is the issue date of a definitive Series I savings bonds?
§ 359.28 Are taxpayer identification numbers (TINs) required for the registration of definitive Series I savings bonds?
§ 359.29 What amount of definitive Series I savings bonds may I purchase per year?
§ 359.30 Are definitive Series I savings bonds purchased in the name of an individual computed separately from bonds purchased in a fiduciary capacity?
§ 359.31 What definitive Series I savings bonds are included in the computation?
§ 359.32 What definitive Series I savings bonds are excluded from the computation?
§ 359.33 What happens if I purchase definitive Series I savings bonds in excess of the maximum amount?
§ 359.34 May I purchase definitive Series I savings bonds over-the-counter?
§ 359.35 May I purchase definitive Series I savings bonds through a payroll savings plan?
You may purchase definitive bonds through deductions from your pay if your employer maintains a payroll savings plan. An authorized issuing agent must issue the bonds.
§ 359.36 May I purchase definitive Series I savings bonds through employee thrift, savings, vacation, and similar plans?
You may purchase bonds registered in the names of employee plans in authorized denominations through a designated Federal Reserve Bank, as provided in part 360 of this chapter.
§ 359.37 How are definitive Series I savings bonds delivered?
We deliver definitive bonds by mail to your address. If your address is within the United States, its territories or possessions, or the Commonwealth of Puerto Rico, we will deliver bonds at our risk. Bonds delivered elsewhere will be delivered at your risk; however, at our discretion, we may require delivery to an address within the United States, or refuse delivery to addresses in countries referred to in part 211 of this chapter.
§ 359.38 How is payment made when definitive Series I savings bonds are redeemed?
A financial institution qualified as a paying agent under the provisions of part 321 will pay the current redemption value of a definitive Series I bond presented for payment. The bond must meet the requirements for payment specified in part 360. You must establish your identity and entitlement to redemption to the satisfaction of the agent, in accordance with our instructions and identification guidelines, and must sign and complete the request for payment.
§ 359.39 How are redemption values calculated for definitive Series I savings bonds?
We determine the redemption value of a definitive savings bonds for the accrual date (the first day of each month) by first determining the composite rate as defined in §359.13. If the result of the composite rate calculation is a negative value, zero will be the assumed composite rate in the redemption value calculation. Redemption values are calculated using the following formula (For examples of the calculation, see Appendix A to part 359):
FV = PV × {[1 + (CR ÷ 2)] (m÷6)}
Where: FV (future value) = redemption value on the accrual date rounded to the nearest cent without consideration of penalty. PV (present value) = redemption value at the beginning of the semiannual rate period calculated without consideration of penalty. For bonds that are older than five years, PV will equal the redemption value at the start of the semiannual rate period. CR = composite rate converted to decimal form by dividing by 100. m = number of full calendar months elapsed during the semiannual rate period.
§ 359.40 How can I find out what my definitive Series I savings bonds are worth?
(a) Redemption values. Redemption values are available for definitive bonds in various formats and media.
(1) You may determine the redemption value for definitive bonds on the Internet at www.savingsbonds.gov.
(2) You may download savings bonds calculators from the Internet at www.savingsbonds.gov.
(3) You may obtain paper tables from the Bureau of the Public Debt, Parkersburg, West Virginia 26106–1328. We reserve the right to cease making paper tables of redemption values available.
(b) Redemption penalty. Redemption values published in the tables reflect the three-month interest penalty applied to bonds redeemed prior to five years from the date of issue.
