Savings Bond Bounceback

When children reached into Christmas stockings and ripped open presents last week, thousands of youngsters probably found a thin, crisp gift that represented an investment in their future: a U.S. savings bond. After a four-year slide in popularity, Uncle Sam's bonds are staging a comeback. The Treasury Department reports that sales of the notes totaled $3.9 billion during the past twelve months, up 20% from the previous year.

The surge stems from the Government's decision in November 1982 to offer variable rates of interest on savings bonds. When bond sales slumped in the early 1980s, they carried fixed interest rates as low...

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