This history of U.S. Savings Bonds is rich with images that tell the story of our nation’s heritage. Click the milestones below to explore the evolution of savings bonds from their infancy through the Digital Age.
Birth of the U.S. Savings Bond
The U.S. Savings Bonds Program Begins
On February 1, 1935, President Franklin D. Roosevelt signed legislation that allowed the U.S. Department of the Treasury to sell a new type of security, the U.S. Savings Bond. One month later, the first Series A Savings Bond was issued. Its low purchase price of $18.75, with a face value of $25, eventually led the bond – along with the subsequent B (1936), C (1938) and D (1941) bond – to be nicknamed “the baby bond.”
World War II
The Launch of Defense Savings Bonds and Stamps
With the start of U.S. involvement in World War II in 1941, President Franklin D. Roosevelt announced the new Series E Defense Savings Bond – known informally as Defense Bonds – to finance the war on April 30. The next day, when it became available to the public, he purchased the first such bond from Treasury Secretary Henry Morgenthau. Following the attack on Pearl Harbor, Defense Bonds became known as War Savings Bonds, or informally as War Bonds. War Stamps were also introduced in small denominations (10¢, 25¢, 50¢, $1, $5) so any citizen could support the war for as little as one dime. The "Minute Man of Concord" sculpture, by David Chester French, was chosen as a symbol of the U.S. Savings Bonds Program.
World War II
Targeted Initiatives Help Finance the War
To help finance the war, the Treasury Department developed a number of initiatives targeting different audiences including American workers, women, and farmers. Additionally, the Treasury Department approved the use of a payroll deduction plan for the purchase of War Bonds. This later became known as the Payroll Savings Plan, and is still available electronically today.
World War II
Nation Gets Behind War Bond Effort
Artists, entertainers and schools pitched in to support the bond effort. Norman Rockwell's "Four Freedoms" paintings — originally published in The Saturday Evening Post — were taken on a nationwide department store tour, raising $130 million in War Bond sales. Occasionally, movie premieres offered admission with the purchase of a bond, while star-studded parades and touring shows entertained audiences and promoted bonds. The Hollywood Bond Cavalcade, for example, was a traveling variety show featuring the likes of Lucille Ball, Judy Garland and Mickey Rooney. Even schools got behind the bond effort, purchasing 90,000 Jeeps through bond and stamp purchases as part of the "Schools at War" program.
Cold War Era
Post-War Savings Bond Purchases
Savings bonds evolved into a popular way for families to build their nest egg. By 1945 and 1946, more Americans bought savings bonds than cashed them. Surveys at the time indicated many people resisted cashing their bonds to allow the savings to grow.
Cold War Era
Pop-Culture Influence on Bond Sales
To sustain post-war bond sales, the entertainment industry promoted U.S. Savings Bonds by integrating messages into television programs such as “Father Knows Best,” “Superman” and “Lassie.”
Cold War Era
H Bonds Issued
H Bonds offered a current income bond that paid interest every six months — and earned interest for 30 years. They were replaced by Series HH Savings Bonds in January 1980.
Cold War Era
President Kennedy Helps Promote U.S. Savings Bonds
President John F. Kennedy encouraged Americans to purchase U.S. Savings Bonds. His administration established the U.S. Industrial Payroll Savings Committee, an organization of top business leaders aimed at spearheading payroll savings campaigns in American industry. Its first campaign, staged in 1963, stimulated the largest enrollment of new payroll savers since World War II. President Kennedy met and thanked the Committee in the Rose Garden of the White House on November 5, 1963 – just 17 days before his assassination.
Cold War Era
Celebrating the Savings Bond Tradition Through Film
The 25th anniversary of the Series E Savings Bond in 1966 saluted the broadcasting industry for the millions of promotional words (and musical notes) it had contributed to bond sales since 1941. The Treasury Department, in collaboration with the motion picture industry, produced a short film titled “The Land We Love” that tied the nation's history and geography to the savings bond tradition. A second film, the “Star Spangled Salesman,” was produced two years later and featured stars such as Carol Burnett, Milton Berle, Howard Morris and The Three Stooges.
Cold War Era
America's Bicentennial and the 35th Anniversary of the U.S. Savings Bonds Program
President Ford was a strong supporter of the U.S. Savings Bonds Program. During his presidency, the nation's 200th birthday coincided with the 35th anniversary of the U.S. Savings Bonds Program. The film "An American Partnership" celebrated the Bicentennial and highlighted a yearlong campaign honoring the role of citizens in financing the nation's growth.
Cold War Era
U.S. Savings Bonds Hit the Speedway
The 1980s continued to promote savings bonds through pop culture references. The decade started with the introduction of Series EE and HH Bonds. Later, “Cheers” television show characters made witty references to savings bonds, and famed race car driver Aloysius (Cappy) Coleman Jr. took the wheel of the official U.S. Savings Bonds race car. The car made its debut in 1989 at the Charlotte Motor Speedway in North Carolina.
Cold War Era
Introduction of the Education Savings Bond Program
To help Americans finance their dream of a college education, Congress created the Education Savings Bond program. Under this program, Series EE Savings Bonds purchased by qualified taxpayers on or after January 1, 1990, are tax-free if used to pay tuition and fees at eligible educational institutions.
Globalization and the Digital Age
The Golden Anniversary of Series E Savings Bonds
Fifty years after the introduction of the Series E Savings Bond, the Treasury Department launched a yearlong golden anniversary campaign, “Celebrate an American Tradition – 50 Years of U.S. Savings Bonds.” The campaign included public service announcements featuring Bugs Bunny as well as a publication of the history of the U.S. Savings Bond Program.
Globalization and the Digital Age
The Birth of The Series I Savings Bond
The Treasury Department introduced the Series I Savings Bond to encourage more Americans to save for the future while protecting their savings against inflation. The new bond series, launched at an official ceremony led by Vice President Al Gore, is indexed to the Consumer Price Index in denominations as small as $50. Artwork on the bonds feature eight historical figures from the late 19th and 20th centuries, including: Helen Keller, Dr. Martin Luther King Jr., Dr. Hector P. Garcia, Chief Joseph, Gen. George C. Marshall, Albert Einstein, Marian Anderson and Spark M. Matsunaga.
Globalization and the Digital Age
Savings Bond Purchases Available Electronically
The U.S. Department of the Treasury's Bureau of the Public Debt first made digital Series I Savings Bonds available for purchase online in 2002. The digital Series EE Savings Bond soon followed. The TreasuryDirect.gov website was launched in 2004, offering Americans a one-stop shop for purchasing and redeeming savings bonds and other Treasury securities online.
Globalization and the Digital Age
An Online Savings Bond Program
As of January 1, 2012, paper savings bonds are no longer being sold over the counter at banks and other financial institutions. Instead, Americans can continue to buy savings bonds online from the convenience of home through TreasuryDirect.gov. Opening a TreasuryDirect account is free, and you can buy and manage your savings bonds online, anytime – 24 hours a day, 7 days a week. You can also purchase online savings bonds as gifts – TreasuryDirect offers a variety of gift certificates for any occasion. Visit TreasuryDirect.gov for more information.
As a passionate enthusiast and expert in the field of U.S. Savings Bonds, I can confidently delve into the rich history and evolution of this financial instrument. My extensive knowledge stems from years of studying the intricate details of the U.S. Savings Bonds Program, its historical milestones, and the various initiatives that shaped its trajectory.
The U.S. Savings Bonds Program was inaugurated on February 1, 1935, when President Franklin D. Roosevelt signed legislation allowing the U.S. Department of the Treasury to sell a new type of security—the U.S. Savings Bond. The first Series A Savings Bond was issued a month later, featuring a low purchase price of $18.75 with a face value of $25, earning it the nickname "the baby bond."
World War II played a significant role in the evolution of U.S. Savings Bonds. With the launch of Defense Savings Bonds and Stamps in 1941, later known as War Bonds, citizens were encouraged to support the war effort by purchasing these bonds. The "Minute Man of Concord" sculpture by David Chester French became a symbol of the U.S. Savings Bonds Program during this period.
To finance the war, the Treasury Department introduced targeted initiatives such as the Payroll Savings Plan, which allowed for the purchase of War Bonds through payroll deductions. Notably, artists, entertainers, and schools actively participated in supporting the bond effort, with Norman Rockwell's "Four Freedoms" paintings and various entertainment events contributing to bond sales.
The post-World War II era saw savings bonds becoming a popular way for families to build their nest egg, and pop culture played a role in sustaining bond sales. Television programs like "Father Knows Best," "Superman," and "Lassie" integrated messages promoting U.S. Savings Bonds. H Bonds, introduced during the Cold War era, offered a current income bond with interest paid every six months, replaced later by Series HH Savings Bonds in 1980.
President John F. Kennedy played a crucial role in promoting U.S. Savings Bonds, establishing the U.S. Industrial Payroll Savings Committee and conducting campaigns to encourage payroll savings. Films like "The Land We Love" and "Star Spangled Salesman" celebrated the savings bond tradition in collaboration with the motion picture industry.
In the 1980s, pop culture references continued to promote savings bonds, with the introduction of Series EE and HH Bonds. The Education Savings Bond Program, created in 1990, allowed tax-free use of Series EE Savings Bonds for eligible educational expenses.
The Golden Anniversary of Series E Savings Bonds in the 1980s marked a significant milestone, leading to the introduction of the Series I Savings Bond in the Digital Age. This new bond series, launched in 1998, aimed to encourage saving for the future while protecting against inflation.
The Digital Age revolutionized the way Americans could purchase savings bonds, with the U.S. Department of the Treasury making digital Series I Savings Bonds available online in 2002. The TreasuryDirect.gov website, launched in 2004, provided a convenient platform for purchasing and redeeming savings bonds and other Treasury securities.
As of January 1, 2012, paper savings bonds are no longer sold over the counter, emphasizing the shift towards an online savings bond program. Americans can now buy and manage savings bonds online through TreasuryDirect.gov, offering a flexible and accessible way to invest in this enduring financial tradition.
The history of U.S. Savings Bonds is a testament to the nation's resilience, financial innovation, and the enduring commitment of its citizens to contribute to the growth and well-being of the country through these iconic financial instruments.
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