A bill to protect funds invested in series E U.S. savings bonds from inflation and to encourage persons to provide for their own security.

Provides, under the Internal Revenue Code, that gross income does not include the interest received on the redemption of any series E United States savings bonds where the purchasing power of the aggregate of such interest and the price paid for such bond is less than the purchasing power of the price paid for such bond. (Amends 26 U.S.C. 121)