Annual Purchase Limit For Savings Bonds Set at $5,000

FOR IMMEDIATE RELEASE

December 3, 2007

Theannual limitation on purchases of United States Savings Bonds will beset at $5,000 per Social Security Number, effective January 1, 2008.The limit applies separately to Series EE and Series I savings bonds,and separately to bonds issued in paper or electronic form. Under thenew rules, an individual can buy a maximum of $5,000 worth ofelectronic and paper bonds of each series in a single calendar year, ora total of $20,000, in single ownership form. If paper bonds are issuedin co-ownership form, the limit applies to the first-named co-owner.All limits are based on the issue price of the securities.

The reduction from the $30,000 annual limit in effect for bothseries since 2003 was made to refocus the savings bond program on itsoriginal purpose of making these non-marketable Treasury securitiesavailable to individuals with relatively small sums to invest.Approximately 98 percent of all annual purchases of savings bonds byindividuals are for $5,000 or less. The minimum purchase price forSeries EE bonds is $25, whether purchased electronically or in paperform; the I bond minimum purchase is $25 for bonds issued in electronicform and $50 for those in paper form.

Savings bond purchases have been subject to an annual limit sinceSeries E Bonds were first issued in 1941. Over the years, limits havebeen adjusted by the Treasury Department several times and have rangedfrom a low of $3,750 (at issue price) for Series E bonds from 1941through 1947 to the $30,000 (issue price) limit that most recentlyapplied to both Series EE and Series I bonds. The limit was last set at$5,000 (issue price) in 1973.