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Subject:  Re: Treasury Zero-Percent Cert of Indebtedness ? Date:  2/27/2005  2:15 PM
Author:  Mark0Young Number:  11940 of 35576

I think Paul misunderstood what C of I's are.

C of I's serve as a way to hold cash at TreasuryDirect without locking up that cash in a Savings Bond.

I can think of a couple places where a C of I may be useful:

1. The employer uses payroll withholding to fund your TreasuryDirect account. However, your employer doesn't know the details of how you want your Savings Bonds registered. So, instead of buying Savings Bonds, the money goes into C of I. Once you have at least $25 in C of I (the minimum purchase price of either an I-Bond or an EE-Bond at TreasuryDirect is $25), you can then use that to purchase your Savings Bond using whatever registration available to you (e.g., you might want to rotate beneficiaries between your children) and decide whether you want to purchase an I-Bond or an EE-Bond.

2. You want to schedule regular direct debits of your checking account, but yo