I AM TODAY announcing an increase, to become effective June 1, 1968, on the interest rates for both United States savings bonds and Freedom Shares.
The new rate on both series E and H savings bonds will move from 4.15 to 4.25 percent--the maximum permitted by law. This higher rate will apply not only to newly purchased bonds but also proportionately to all outstanding E and H bonds for their remaining period to next maturity. Thus, present bond-owners will be rewarded for investing in America and will not have to cash in their present bonds to take advantage of the higher rates.
The rate on Freedom Shares will be increased from the present 4.74 percent to a full 5 percent when held to maturity of 4 1/2 years. Since these are savings notes, rather than savings bonds, there is no provision in the law for applying this increase to Freedom Shares which are outstanding. I am assured, however, that because of the rising scale of Freedom Share interest accruals, most of these outstanding shares will earn a comparably high rate for their remaining period of maturity.
Limitations on the combination purchase of bonds and Freedom Shares will also be relaxed so that any American, at any time, may buy this attractive savings package over the counter at his bank rather than only through a "bond-a-month" plan.
Savings bonds and Freedom Shares now become a more attractive investment than ever before.
As a direct obligation of the United States they are the ultimate in safety--a solid and secure base on which any family's savings and investment program might well be founded. They pay a good, and absolutely guaranteed, return. They are ideally suited for any important long-range goal, such as education, home-ownership, or retirement. But aside from these practical benefits, these securities offer much more. They offer an opportunity for the citizen to participate in America's goals and dreams--to become involved in the achievement of all the things to which we aspire as a free people.
The savings bonds program offers a partnership in which we should all be members. I extend my warmest invitation to every family to join.