Fraternity-Testvériség, 1963 (40. évfolyam, 1-12. szám)

1963-02-01 / 2. szám

OFFICIAL ORGAN OF THE HUNGARIAN REFORMED FEDERATION OF AMERICA Edited by the Officers of the Federation

Published monthly. — Subscription for non-members in the U. S. A. and Canada $2.00, elsewhere $3.00 a year.

Office of Publication: Expert Printing Co., 4627 Irvine St., Pittsburgh 7, Pa.

Editorial Office:

Suite 1201, Dupont Circle Bldg., 1346 Connecticut Ave., Washington 6, D. C. Volume XLI FEBRUARY 1963 Number 2

F RATERN ITY

AyW A\-XX iV. ^ ^ ^ ^ ]

ROBERT PETERSON:

WHAT’S BEST FOR RETIREES . . . BONDS OR SAVINGS ACCOUNT?

I often hear from folks along in years who want data on the relative merits of putting their nest egg into savings accounts and savings bonds. Here are some typical questions:

Q.: "We recently retired and sold our home for $20,000 and have moved to a small apartment. We would like to put this cash into a safe place. Which is best — an insured savings account at the bank or U. S. Savings Bonds?"

A.: Both offer virtually the same benefits in safety and interest. Savings banks in most areas have accounts insured up to $10,000 by the Federal Deposit Insurance Corporation and pay interest rates of 3% to 4 per cent. You and your wife may each set up such an account and thus have your funds fully protected.

There are currently only two kinds of U. S. Savings Bonds — Series E and Series H. Series E Bonds pay 3% per cent interest

when held to maturity for 7 years and 9 months. A $10,000 Series E Bond can be purchased for $7,500. You can cash these bonds after 60 days, but you won’t get the mature value unless they are held the full period.

Series H bonds also pay 3% per cent but do not mature for 10 years. You buy these bonds at various denominations, such as $10,000,

and a graduated rate of interest is mailed to you every six months.

These bonds can be cashed at the purchase price after six months

from issue date.

Q.: "If insured bank savings and U. S. Savings Bonds are equally safe and pay similar interest rates, why should one prefer one over the other?"

A.: Same reason that some prefer chocolate to vanilla. Some like to have their money in a savings account where it is readily accessible. Others prefer bonds which can be tucked away in a safety deposit box where they’ll be less tempted to cash them. Some like the fact that