A bill to amend the Internal Revenue Code of 1954 to exclude from gross income the interest on deposits in certain savings institutions.

Amends the Internal Revenue Code to exclude from gross income up to $500 ($1,200 for joint returns) of the interest earned on savings accounts in banks, savings and loan associations, or credit unions. Provides that such exclusion shall be limited to $600 for heads of households and $1,200 for individuals entitled to more than one personal exemption.