BANKING & FINANCE - May 3, 1994

Savings Bond Rate Rises: The interest rate on U.S. savings bonds for the next six months will be 4.7%, up from 4.25%, the Treasury Department said. The rate, adjusted twice yearly for market conditions, took effect Sunday and will continue through Oct. 31 for Series EE bonds. When held for five years, the yield at redemption is the average of semiannual interest rates during the period or the guaranteed minimum rate, whichever is higher. Series EE bonds issued since March 1, 1993, pay a minimum 4% when redeemed within five years.