Freedom Shares

What are Freedom Shares?

Freedom shares, otherwise called savings notes, are original issue discount bonds issued by the U.S. Treasury between May 1967 and October 1970 with a 30-year maturity.

Understanding Freedom Shares

Freedom shares were sold in sections of $25, $50, $75 and $100. They were issued on a discount basis at 81% of face value. For instance, a $100 face value bond would have been purchased for $81. Freedom shares arrived at last maturity 30 years from the issue date.

At the point when they were presented in 1967, Freedom shares were sold through payroll savings plans or "bond-a-month" plans offered by means of banks. They were not accessible for lump sum purchases over the counter. Moreover, Freedom shares must be bought with a simultaneous purchase of Series E Bonds, and purchasers were limited to purchasing $1,350 in maturity value every year. Freedom shares paid a higher interest rate than Series E Bonds. By connecting the two programs, treasury authorities looked to try not to take advantage of money that was at that point bound for other government savings programs.

The original term to maturity was four and a half years. Discretionary extensions of maturity of two 10-year periods and an extra five-and-a-half-year period were conceded, making the total interest-procuring life span 30 years.

Savings note interest is reportable for federal income tax purposes for the year in which the note is redeemed, arrives at definite maturity, or is generally discarded, whichever happens first. The note owner might report interest every year as it builds. In any case, such an election must apply to an owner's all's accumulation type securities. Freedom shares can be redeemed at any Federal Reserve Bank or branch, or any financial institution designated as a paying agent of government savings bonds.

Freedom Shares and Series E Bonds

The U.S. Treasury sold Series E Bonds between 1941 and 1980. They were presented in the midst of rising defense expenditures and developing national debt in the lead up to U.S. contribution in World War II. The bonds were sold by means of a national volunteer program that enrolled help from financial institutions, community leaders, volunteer committees, and advertising and communications media. Bankers, business executives, paper distributers, and Hollywood performers additionally advanced the bonds.

Like the Series E Bond, the sale of Freedom shares were tied to U.S. war efforts. President Lyndon B. Johnson announced the program in the midst of the U.S. heightening of its war in Vietnam.

Numerous Fortune 500 company executives served on the U.S. Savings Bonds Volunteer Committee, which advanced the purchase of savings bonds through payroll deductions between 1963 and 2003.

The U.S. Treasury department claims the Series E bond turned into the world's most widely held security. It was sold as a "defense bond" in 1941, a "war bond" during U.S. participation in World War II, and a customary U.S. savings bond soon after. In 1980, Series E Bonds were supplanted by Series EE Savings Bonds.

Features

• Freedom shares were just accessible for purchase by means of a payroll savings plan or a "bond-a-month" plan offered through a bank.
• The U.S. Treasury sold Freedom shares from May 1967 to October 1970.
• Likewise, purchasers could purchase Freedom shares simultaneously with Series E Bonds.
• Freedom shares were issued at 81% of face value and sold in divisions of $25, $50, $75 and $100 with a 30-year maturity.