Uncle Sam Defends Bonds In Inflation Debate
Uncle Sami’s spokesman Jesse Adams outlines three main reasons for buying U S Savings Bonds safety, rate and tax deferral, and patriotism. Bonds backed by full faith and credit carry no defaults and can’t lose value below purchase price with 6 percent semiannual compounding at five years. Tax deferral applies federal only until cash in or maturity, while many savers buy through banks or payroll plans, promoting regular saving and debt stability for the country.