Commandant (G-PS)
2100 Second Street, S.W.
United States Coast Guard
Washington, DC 20593-0001
(202) 267-1649
COMDTINST 5120.2J
17 MAY 1988
COMMANDANT INSTRUCTION 5120.2J
Subj:
U.S. Savings Bond Program
1.
PURPOSE. This Instruction solicits support for the U.S. Savings Bond Program and provides
an updated directory of Savings Bond Offices.
2.
CANCELLATION. Commandant Instruction 5120.2I is hereby cancelled.
3.
BACKGROUND.
a.
Purchasing U.S. Savings Bonds through the Payroll Savings Plan is a patriotic way for
citizens to help the Federal Government finance its debt. Additionally, this is a
convenient and systematic method for individuals to accumulate savings while earning
competitive interest rates on their investment. Series EE Savings Bonds pay an interest
rate based on marketable Treasury securities that is adjusted every 6 months, with a
guaranteed minimum yield of 6 percent if held for at least 5 years. All the interest is
exempt from state and local taxes and can be deferred from Federal tax reporting until
the bonds are redeemed. These features make Savings Bonds an attractive alternative
to other investments opportunities, and help sell the program on its own merits.
b.
Although the success of any Servicewide program depends largely upon high level
involvement and support, it is imperative that participation in the Savings Bond
Program be entirely voluntary. It is the responsibility of each command to ensure that
participation is a result of an informed, constructive, and personal decision. While
personnel should be strongly encouraged to buy Savings Bonds on a recurring basis
beginning with the new personnel arriving on board, no form of coercion or high-
pressure tactics shall be used. The procedures for acquainting personnel with the
advantages of the program cannot be misunderstood as being other than voluntary.