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#492443 - 02/02/06 03:42 PM Savings Bond drawing
BankerKB Offline
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BankerKB
Joined: Jan 2005
Posts: 288
If we had a drawing (open to customers and noncustomers) for a $100 savings bond would there be any issues with purchasing a $100 bond for $50? What about if we wanted to give an I Bond which we would have to purchase for $100.
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Any information posted is my opinion and not the opinion of my employer.

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#492444 - 02/02/06 04:18 PM Re: Savings Bond drawing
8675309 Offline
Diamond Poster
Joined: Jun 2004
Posts: 1,115
Where the wind comes sweeping ...
You do not have to worry about filing a 1099 unless you give away an item over $600.

The only other concern would be checking your state laws on sweepstakes and contests. Some states have a minimum age for participants.

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#492445 - 02/02/06 07:19 PM Re: Savings Bond drawing
BankerKB Offline
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BankerKB
Joined: Jan 2005
Posts: 288
It couldn't be considered deceptive if you say you're giving a $100 bond but you bought it for $50 and it won't be worth that until it hits maturity?
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Any information posted is my opinion and not the opinion of my employer.

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#492446 - 02/03/06 12:07 AM Re: Savings Bond drawing
8675309 Offline
Diamond Poster
Joined: Jun 2004
Posts: 1,115
Where the wind comes sweeping ...
A consumer may not understand that but a regulator would. It's not like you're saying $100 cash and only giving $50. I can't imagine you been accused of deceptive advertising for that, but of course all this is just my personal opinion.

Not that this makes it right, but I think all banks do it all the time. If you feel the need, you might just put something in the fine print about full value will be reached after 7 years maturity.

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