Statement on Interest Rates for United States Series EE Savings Bonds

October 27, 1982

I have today announced that beginning November 1, a new market-based interest rate formula will be effective for Series EE U.S. Savings Bonds.

All Series EE bonds purchased on and after November 1, 1982, and held at least 5 years, will earn at least 85 percent of the average yield during the holding period on outstanding Treasury marketable securities with approximately 5 years remaining to maturity. New bonds held less than 5 years will continue to earn interest on a fixed, graduated scale.

This major change in the way Savings Bonds interest is computed will help return bonds to the forefront of savings instruments. Savings Bonds will now be able to keep pace with other investments, and their owners are guaranteed a competitive return regardless of market conditions. This is another important step in our effort to encourage added savings, which are a key to our country's economic growth.

Note: In an Oval Office ceremony on October 27, the President met with Angela Buchanan, Treasurer of the United States, James Robinson, 1983 Chairman of the U.S. Industrial Payroll Savings Committee, and members of the Committee. At the meeting, the President purchased the first bond sold under the new program.