"United States Payroll Savings Plan"
By U.S. Department of the Treasury

What is U.S. Payroll Savings Plan ?

Payroll Savings Plan enables employees to buy US savings bonds through payroll deductions. Each participant sets away money from their wage & employer buys a bond on their behalf.

How Payroll Savings Plan Works ?

Under Plan employees can invest a portion of their paycheck in Series EE and Series I. These bonds earn interest over time & can be redeemed for their face value plus accrued interest.

Who is Eligible US Payroll Savings Plan ?

US Payroll Savings Plan is available to any individual who is a United States citizen, a resident or a U.S. government employee, regardless of their citizenship status.


Tax on U.S. Savings Bond Plan

The interest earned on savings bonds is exempt from state and local taxes, and may also be exempt from federal taxes, if the bonds are used to pay for qualified higher education expenses.

How is a Savings Bond Cashed ?

After holding a savings bond for a year, you can cash it in at any time, but if you do so before five years have passed, you will lose the final three months' interest.

Benefits of Payroll Savings Plan

Payroll Savings Plan is the convenience of automatic payroll deductions. By investing a small amount each paycheck, employees can build up a significant savings over time.

How to Enroll in a U.S. Payroll Savings Plan ?

click here to enroll

Employees can enroll in the Payroll Savings Plan through their employer, and contributions can be adjusted or stopped at any time.