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Newspaper Archive of
Journal Opinion
Bradford , Vermont
Lyft
September 23, 1981     Journal Opinion
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September 23, 1981
 

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Page 4A.The Seeead Opinim4ieptember Z3. INI STRAIGHT TAL FROM BNB ii D The Facts About Tax Exempt Savings Accounts The recently announced All-Savers Certificate will be available on October 1. BNB (and most banks) will offer them. They will be one year savings certificates covered at BNB by federal deposit in- surance (up to $100,000), and available for as little as $500.00. Income will be exempt from federal taxes: up to $2,000 on a joint return, $1,000 on a single return. Certificates may be purchased from October 1, 1981 to December 31, 1982: However, your tax exemption applies to the aggregate of all interest earned on your All-Savers Cer- tificates purchased during this 15 month period, ers_ m 1981 an L 1982 purchasingcould have federally tax-free interest during 1981, 1982 and 1983--but no more than an aggregate of $2,000-$1,000. !"-I This is a life-time exemption, you can only get it once. [--J The interest rate paid will be 70 percent of the one-year treasury bill rate. This rate wzll be set penodmally (12.61 percent starting October 1.), and will be guaranteed for one year. Withdrawals made prior to maturity will result in loss of the tax exemption on that certificate. In addition, normal penalties for early with- drawal will apply.. BNB will pay the hzghest rate permRted and no bank wzll pay you more. | EJ Presently outstanding six-month Money Market Certificates. may be converted without penalty into All-Savers Cer- tificate D The All-Savers will be a reward!ng in- vestment for many savers. In parhcular, those whose federal tax bracket is 30 percent or greater (usually, taxable family income over $25,000) should be interested in this investment. The cer- tificate combines a potent!ally good rate of interest, insured principal and earn- ings, and a small minimum investment over a comparativelyshort period. In short for many it promises to give an excellent return withvirtually no risk. For those in lower tax brackets, BNB's Taxable Investment Certificates in a range of maturities and rates should be investigated. Note the examples below: Probable Family Tax Bracket Income (1982) I Ill $75,000 $60,000 $45,000 $35,000 49 percent r 44 percent 39 percent 33 percent Taxable Interest Rate Equivalent to Non- Taxable 12.61 Percent l l 24.7 percent 22.5 percent 20.7 percent 18.8 percent There is much for you to consider: When should you buy? What is your tax bracket? How much should you invest? Should you buy one or several cer- tificates? We will have the answers. Drop by any of our four full service offices where we're always happy to discuss your banking questions. We want to help you maximize the income from your savings. Bradford, Verrnon t 222-5231 Our Middle Name Is "'National" BNB - Thetford BNB - Fairlee BNB - Newbury MEMBER 785-2112 333-4379 866-5672 DEP. INSURED Page 4A.The Seeead Opinim4ieptember Z3. INI STRAIGHT TAL FROM BNB ii D The Facts About Tax Exempt Savings Accounts The recently announced All-Savers Certificate will be available on October 1. BNB (and most banks) will offer them. They will be one year savings certificates covered at BNB by federal deposit in- surance (up to $100,000), and available for as little as $500.00. Income will be exempt from federal taxes: up to $2,000 on a joint return, $1,000 on a single return. Certificates may be purchased from October 1, 1981 to December 31, 1982: However, your tax exemption applies to the aggregate of all interest earned on your All-Savers Cer- tificates purchased during this 15 month period, ers_ m 1981 an L 1982 purchasingcould have federally tax-free interest during 1981, 1982 and 1983--but no more than an aggregate of $2,000-$1,000. !"-I This is a life-time exemption, you can only get it once. [--J The interest rate paid will be 70 percent of the one-year treasury bill rate. This rate wzll be set penodmally (12.61 percent starting October 1.), and will be guaranteed for one year. Withdrawals made prior to maturity will result in loss of the tax exemption on that certificate. In addition, normal penalties for early with- drawal will apply.. BNB will pay the hzghest rate permRted and no bank wzll pay you more. | EJ Presently outstanding six-month Money Market Certificates. may be converted without penalty into All-Savers Cer- tificate D The All-Savers will be a reward!ng in- vestment for many savers. In parhcular, those whose federal tax bracket is 30 percent or greater (usually, taxable family income over $25,000) should be interested in this investment. The cer- tificate combines a potent!ally good rate of interest, insured principal and earn- ings, and a small minimum investment over a comparativelyshort period. In short for many it promises to give an excellent return withvirtually no risk. For those in lower tax brackets, BNB's Taxable Investment Certificates in a range of maturities and rates should be investigated. Note the examples below: Probable Family Tax Bracket Income (1982) I Ill $75,000 $60,000 $45,000 $35,000 49 percent r 44 percent 39 percent 33 percent Taxable Interest Rate Equivalent to Non- Taxable 12.61 Percent l l 24.7 percent 22.5 percent 20.7 percent 18.8 percent There is much for you to consider: When should you buy? What is your tax bracket? How much should you invest? Should you buy one or several cer- tificates? We will have the answers. Drop by any of our four full service offices where we're always happy to discuss your banking questions. We want to help you maximize the income from your savings. Bradford, Verrnon t 222-5231 Our Middle Name Is "'National" BNB - Thetford BNB - Fairlee BNB - Newbury MEMBER 785-2112 333-4379 866-5672 DEP. INSURED