BANKING & FINANCE - April 14, 1993

Sales of Savings Bonds Plummet 30.5%: Sales of U.S. savings bonds in March plunged 30.5% from February, as the government cut the guaranteed minimum rate on the securities. Sales totaled $1.41 billion last month, down from $2.03 billion in February and the lowest in eight months. Savings bonds held for five years or longer earn the guaranteed minimum rate or the average of market-based rates for the period, whichever is greater. Effective March 1, the Treasury Department cut the minimum guaranteed rate from 6% to 4%. Sales in March still represented a jump of 23% from a year ago. It was the highest March total in the 52-year history of the savings bond program.