a205  1008  18 Sep 81
AM-Savings, Bjt,530
Consumer Scorecard: Options for Your Money
By LOUISE COOK
Associated Press Writer
    If you think saving money is hard these days, try figuring out how
to invest it once you've got it. The possibilities seem endless and
the choices are complicated.
    Among the things to consider are: Is there a minimum deposit? Can
you take your money out at any time or is there a penalty? Is the
deposit insured? Is interest compounded? Is it interest taxable?
    Up to $200 in interest and dividends - $400 for married couples - is
exempt from federal income tax this year. The general interest
exemption is a one-time break only, however. If you want an interest
exemption in 1982, you'll need a new All Savers Certificate.
    Here are some of the current savings options:
    Passbook account: Interest is 5.5 percent annually at commercial
banks and 5.75 percent at savings and loan institutions. You generally
can take out your money at any time. Minimum balances of $100 or more
may be required.
    U.S. Savings Bonds: Series EE bonds are available in denominations
as low as $25. They pay 9 percent annual interest if held for at least
eight years. Interest is exempt from state and local income taxes;
payment of federal ax can be deferred until bonds are cashed.
    All Savers Certificates: There is no minimum investment required by
law, but the certificates must be offered in denominations as low as
$500. The annual yield is 70 percent of the interest on one-year U.S.
Treasury Bills - 12.61 percent as of right now. Up to $1,000 of
interest for individuals and $2,000 for married couples is exempt from
federal tax. (In some places, where there is no state or local income
tax on items not subject to federal tax, the interest from All Savers
also may be exempt from local levies.) The certificates go on sale
Oct. 1, will be available until Dec. 31, 1982 and have a maturity of
one year. If you withdraw money early, you pay a penalty equal to
three months' interest and you lose the tax exemption.
    Six-month certificates of deposit: They cost $10,000 and pay a
maximum interest rate one-fourth of a percentage point higher than the
interest on 26-week U.S. Treasury Bills. The current certificate rate
is 14.907 percent. There is a penalty for early withdrawal - you
forfeit three months' interest - but regulators have made an
exception: You can cash in a six-month certificate of deposit and
invest in an All Savers Certificate without penalty.
    Small Savers Certificates: These certificates have a term of from 2 1/2
to 4 years. Federal law does not require a minimum deposit. Thrift
institutions pay a maximum interest rate equal to the yield on
Treasury Bills of comparable terms - currently 16.55 percent;
commercial banks pay one-fourth of a percentage point less. The
penalty for early withdrawal is a loss of six months' interest.
    Money-market funds: Minimum deposits vary, but generally start at
$1,000. You usually can withdraw money at any time in fixed increments
without penalty. Funds may be invested in government securities, bank
certificates, etc. Interest rates fluctuate; they have been averaging
around 17 percent a year, but are not guaranteed for any set period
of time. Deposits are not insured, but you can pick a fund that
invests only in low-risk items like Treasury bills.
    All the investments except money-market funds are available at banks
and thrift institutions. You have to contact a broker or fund
representative directly for a money-market fund. Check your newspaper
for fund advertisements, or ask a brokerage house for information.
    
ap-ny-09-18 1300EDT
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a234  1410  18 Sep 81
AM-Digest Advisory,
    All budgets for Saturday AMs have moved. Here is a listing with
Laserphoto numbers:
    
    UNDATED - Savings. a205.
    NEW YORK - Focus-Croquet. a212.
    DENVER - Reagan, a213
    SAN LUIS OBISPO, Calif. - Diablo Canyon. a217; Laserphotos XSLO1-3.
    BERLIN - Hijack. a218; Laserphoto BER2.
    WASHINGTON - Solidarity Day. a220.
    TOLEDO, Ohio - Toledo Shooting. a222.
    TOPSHAM, Maine - Girlie Show. a224.
    WARSAW, Poland - Poland. a225.
    MOSCOW - Soviet-Poland. a226.
    GRAND RAPIDS, Mich. - Ford Museum. a232. Laserphotos GS2,3,4,7,8,
others.
    UNDATED - Economy Rdp. a233. Laserphoto Chart NY28.
    
ap-ny-09-18 1701EDT
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