Dreyfus Investment Grade Bond Funds, Inc.
Dreyfus Short Term Income Fund
Dreyfus Intermediate Term Income Fund
Investing in fixed-income securities for high current income
PROSPECTUS December 1, 1999
As revised, March 31, 2000
As with all mutual funds, the Securities and Exchange Commission has not
approved or disapproved these securities or passed upon the adequacy of this
prospectus. Any representation to the contrary is a criminal offense.
<PAGE>
Contents
THE FUNDS
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Each fund's investment approach, risks, performance, expenses and related
information
1 Introduction
2 Goal/Approach
4 Main Risks
5 Past Performance
7 Expenses
9 Management
10 Financial Highlights
YOUR INVESTMENT
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Information for managing your fund account
12 Account Policies
15 Distributions and Taxes
16 Services for Fund Investors
18 Instructions for Regular Accounts
20 Instructions for IRAs
FOR MORE INFORMATION
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Where to learn more about these and other Dreyfus funds
Back Cover
<PAGE>
The Funds
Dreyfus Short Term Income Fund
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Ticker Symbol: DSTIX
Dreyfus Intermediate Term Income Fund
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Ticker Symbol: DRITX
This combined prospectus has been prepared for your convenience so that you can
consider two investment choices in one document. Each fund is a separate entity
with a separate investment portfolio. The operations and results of one fund are
unrelated to those of the other fund.
Each fund seeks as high a level of current income as is consistent with the
preservation of capital. To pursue this goal, each fund invests primarily in a
broad range of investment grade debt securities of domestic and foreign issuers
The funds differ in their effective duration and average portfolio maturity,
which affect their level of income and degree of share price fluctuation.
INFORMATION ON EACH FUND'S RECENT PERFORMANCE CAN BE FOUND IN ITS CURRENT
ANNUAL/SEMIANNUAL REPORT (SEE BACK COVER).
What these funds are -- and aren't
These funds are mutual funds: pooled investments that are professionally managed
and give you the opportunity to participate in financial markets. They strive to
reach their stated goals, although as with all mutual funds, they cannot offer
guaranteed results.
An investment in these funds is not a bank deposit. It is not insured or
guaranteed by the FDIC or any other government agency. It is not a complete
investment program. You could lose money in these funds, but you also have the
potential to make money.
Introduction 1
<PAGE>
Dreyfus Investment Grade Bond Funds, Inc.
GOAL/APPROACH
Dreyfus Short Term Income Fund
The fund seeks as high a level of current income as is consistent with the
preservation of capital. To pursue this goal, the fund invests at least 65% of
its net assets in investment grade fixed-income securities of U.S. and foreign
issuers or the unrated equivalent as determined by Dreyfus. These securities
include: U.S. government bonds and notes, corporate bonds, municipal bonds,
convertible securities, preferred stocks, asset-backed securities,
mortgage-related securities, and foreign bonds.
Typically, the fund's portfolio can be expected to have an average maturity and
an average effective duration of three years or less.
For additional yield, the fund may invest up to 35% of its net assets in
fixed-income securities rated below investment grade ("high yield" or "junk"
bonds) and as low as Caa/CCC by the agencies rating such securities or the
unrated equivalent as determined by Dreyfus.
The fund will focus primarily on U.S. securities, but may invest up to 30% of
total assets in fixed-income securities of foreign issuers, including those of
issuers in the emerging markets.
The fund is non-diversified, which means that a relatively high percentage of
the fund's assets may be invested in a limited number of issuers. Therefore, its
performance may be more sensitive to changes in the market value of a single
issuer or a group of issuers.
The portfolio manager buys and sells fixed-income securities based on credit
quality, financial outlook and yield potential. Fixed-income Concepts to
understand
Concepts to understand
INVESTMENT GRADE SECURITIES: independent rating organizations (like Moody's and
Standard & Poor's) analyze and evaluate an issuer's credit history and ability
to repay debts. Based on their assessment, they assign letter grades that
reflect the issuer's creditworthiness. AAA or Aaa represents the highest credit
rating, AA/Aa the second highest, and so on down to D, for defaulted. Bonds
rated BBB or Baa and above are considered investment grade.
2
<PAGE 2>
securities with deteriorating credit quality are potential sell candidates,
while those offering higher yields are potential buy candidates.
Dreyfus Intermediate Term Income Fund
The fund seeks as high a level of current income as is consistent with the
preservation of capital. To pursue this goal, the fund invests at least 65% of
its net assets in investment grade fixed-income securities of U.S. and foreign
issuers or the unrated equivalent as determined by Dreyfus. These securities
include: U.S. government bonds and notes, corporate bonds, municipal bonds,
convertible securities, preferred stocks, asset-backed securities,
mortgage-related securities, and foreign bonds.
Typically, the fund's portfolio can be expected to have an average maturity
ranging between five and ten years and an average effective duration ranging
between three and eight years.
For additional yield, the fund may invest up to 35% of its net assets in
fixed-income securities rated below investment grade ("high yield" or "junk"
bonds) and as low as Caa/CCC by the agencies rating such securities or the
unrated equivalent as determined by Dreyfus.
The fund will focus primarily on U.S. securities, but may invest up to 30% of
total assets in fixed-income securities of foreign issuers, including those of
issuers in the emerging markets.
The portfolio manager buys and sells fixed-income securities based on credit
quality, financial outlook and yield potential. Fixed-income securities with
deteriorating credit quality are potential sell candidates, while those offering
higher yields are potential buy candidates.
Concepts to understand
DURATION: an indication of an investment's "interest rate risk," or how
sensitive a bond or mutual fund portfolio may be to changes in interest rates.
Generally speaking, the longer a fund's duration, the more it will react to
interest rate fluctuations and the greater its long-term risk/return potential.
AVERAGE MATURITY: an average of the stated maturities of the securities held by
the fund, based on their dollar-weighted proportions in the fund. In general,
the longer a fund's average portfolio maturity, the more its share price will
fluctuate in response to changing interest rates.
The Funds 3
<PAGE 3>
MAIN RISKS
Prices of bonds tend to move inversely with changes in interest rates. While a
rise in rates may allow a fund to invest for higher yields, the most immediate
effect is usually a drop in bond prices and, therefore, in the fund's share
price as well. As a result, the value of your investment in a fund could go up
and down, which means that you could lose money. To the extent Dreyfus
Intermediate Term Income Fund maintains a comparatively longer duration than
Dreyfus Short Term Income Fund, its share price will react more to interest rate
movements.
Each fund may invest to a limited extent in high yield bonds which involve
greater credit risk, including the risk of default, than investment grade bonds.
They tend to be more volatile in price and less liquid and are considered
speculative. The prices of high yield bonds can fall in response to bad news
about the issuer, the issuer's industry or the economy in general.
Other risk factors could have an effect on each fund's performance, including:
* if an issuer fails to make timely interest or principal payments, or there
is a decline in the credit quality of a bond, or perception of a decline,
the bond's value could fall, potentially lowering a fund's share price
* the price and yield of foreign debt securities could be affected by factors
ranging from political and economic instability to changes in currency
exchange rates
Under adverse market conditions, each fund could invest up to all of its assets
in money market securities, which could reduce the benefit from any upswing in
the market. During such period, a fund may not achieve its investment objective
Other potential risks
Each fund may, at times, invest in derivative securities, such as options and
futures, and in foreign currencies. Derivatives can be illiquid and highly
sensitive to changes in their underlying security, interest rate or index and,
as a result, can be highly volatile. A small investment in certain derivatives
could have a potentially large impact on a fund's performance.
Each fund will engage in short-term trading, which could produce higher
brokerage costs and taxable distributions.
Each fund can buy securities with borrowed money (a form of leverage), which
could have the effect of magnifying a fund's gains or losses.
4
<PAGE 4>
PAST PERFORMANCE
Dreyfus Short Term Income Fund
The tables below show some of the risks of investing in the fund. The first
table shows the changes in the fund's performance from year to year. The second
table compares the fund's performance over time to that of the Merrill Lynch 1-5
Year Government/Corporate Index, an unmanaged performance benchmark for
investment grade corporate securities and U.S. government securities in that
maturity range. Both tables assume reinvestment of dividends. Of course, past
performance is no guarantee of future results.
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Year-by-year total return AS OF 12/31 EACH YEAR (%)
9.15 0.11 11.19 6.16 8.23 4.29
89 90 91 92 93 94 95 96 97 98
BEST QUARTER: Q2 '95 +4.15%
WORST QUARTER: Q1 '94 -0.79%
THE FUND'S YEAR-TO-DATE TOTAL RETURN AS OF 9/30/99 WAS 4.87%.
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Average annual total return AS OF 12/31/98
<TABLE>
<CAPTION>
Since
inception
1 Year 5 Years (8/18/92)
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<S> <C> <C> <C>
FUND 4.29% 5.93% 6.21%
MERRILL LYNCH
1-5 YEAR
GOVERNMENT/
CORPORATE INDEX 7.68% 6.28% 6.22%
The Funds 5
</TABLE>
<PAGE 5>
PAST PERFORMANCE (CONTINUED)
Dreyfus Intermediate Term Income Fund
The tables below show some of the risks of investing in the fund. The first
table shows the changes in the fund's performance from year to year. The second
table compares the fund's performance over time to that of the Merrill Lynch
Domestic Master Index, an unmanaged performance benchmark for U.S. government
securities and investment grade corporate securities with maturities greater
than or equal to one year. Both tables assume reinvestment of dividends. Of
course, past performance is no guarantee of future results.
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Year-by-year total return AS OF 12/31 EACH YEAR (%)
14.62 7.83
89 90 91 92 93 94 95 96 97 98
BEST QUARTER: Q3 '97 +5.40%
WORST QUARTER: Q3 '98 +0.50%
THE FUND'S YEAR-TO-DATE TOTAL RETURN AS OF 9/30/99 WAS
3.11%.
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Average annual total return AS OF 12/31/98
Since
inception
1 Year (2/2/96)
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FUND 7.83% 10.43%
MERRILL LYNCH
DOMESTIC MASTER
INDEX 8.87% 7.35%
6
<PAGE 6>
EXPENSES
Dreyfus Short Term Income Fund
As an investor, you pay certain fees and expenses in connection with the fund,
which are described in the following table. Annual fund operating expenses are
paid out of fund assets, so their effect is included in the share price. The
fund has no sales charge (load) or Rule 12b-1 distribution fees.
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Fee table
ANNUAL FUND OPERATING EXPENSES
% OF AVERAGE DAILY NET ASSETS
Management fees 0.50%
Shareholder services fee 0.20%
Other expenses 0.17%
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TOTAL 0.87%
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<TABLE>
<CAPTION>
Expense example
1 Year 3 Years 5 Years 10 Years
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<S> <C> <C> <C>
$89 $278 $482 $1,073
</TABLE>
This example shows what you could pay in expenses over
time. It uses the same hypothetical conditions other
funds use in their prospectuses: $10,000 initial
investment, 5% total return each year and no changes in
expenses. The figures shown would be the same whether
you sold your shares at the end of a period or kept
them. Because actual return and expenses will be
different, the example is for comparison only.
Concepts to understand
MANAGEMENT FEE: the fee paid to Dreyfus for managing the fund's portfolio and
assisting in all aspects of the fund's operations.
SHAREHOLDER SERVICES FEE: a fee of up to 0.25% paid to the fund's distributor
for shareholder account service and maintenance.
OTHER EXPENSES: fees paid by the fund for miscellaneous items such as transfer
agency, custody, professional and registration fees.
The Funds 7
<PAGE 7>
EXPENSES (CONTINUED)
Dreyfus Intermediate Term Income Fund
As an investor, you pay certain fees and expenses in connection with the fund,
which are described in the following table. Annual fund operating expenses are
paid out of fund assets, so their effect is included in the share price. The
fund has no sales charge (load) or Rule 12b-1 distribution fees.
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Fee table
ANNUAL FUND OPERATING EXPENSES
% OF AVERAGE DAILY NET ASSETS
Management fees 0.55%
Shareholder services fee 0.25%
Other expenses 0.44%
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TOTAL 1.24%
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<TABLE>
<CAPTION>
Expense example
1 Year 3 Years 5 Years 10 Years
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<S> <C> <C> <C>
$126 $393 $681 $1,500
</TABLE>
This example shows what you could pay in expenses over
time. It uses the same hypothetical conditions other
funds use in their prospectuses: $10,000 initial
investment, 5% total return each year and no changes in
expenses. The figures shown would be the same whether
you sold your shares at the end of a period or kept
them. Because actual return and expenses will be
different, the example is for comparison only.
Concepts to understand
MANAGEMENT FEE: the fee paid to Dreyfus for managing the fund's portfolio and
assisting in all aspects of the fund's operations.
For the fiscal year ended July 31, 1999, Dreyfus waived a portion of its fee so
that the effective management fee paid by the fund was 0.04%, reducing total
expenses from 1.24% to 0.73%. This waiver was voluntary.
SHAREHOLDER SERVICES FEE: a fee paid to the fund's distributor for shareholder
account service and maintenance.
OTHER EXPENSES: fees paid by the fund for miscellaneous items such as transfer
agency, custody, professional and registration fees.
8
<PAGE 8>
MANAGEMENT
The investment adviser for each fund is The Dreyfus Corporation, 200 Park
Avenue, New York, New York 10166. Founded in 1947, Dreyfus manages more than
$118 billion in over 160 mutual fund portfolios. For the past fiscal year,
Dreyfus Short Term Income Fund and Dreyfus Intermediate Term Income Fund each
paid Dreyfus a management fee at the annual rate of 0.50% and 0.04%,
respectively, of the fund's average daily net assets. Dreyfus is the primary
mutual fund business of Mellon Financial Corporation, a global financial
services company with approximately $2.5 trillion in assets under management,
administration or custody, including approximately $450 billion under
management. Mellon provides wealth management, global investment services and a
comprehensive array of banking services for individuals, businesses and
institutions. Mellon is headquartered in Pittsburgh, Pennsylvania.
The Dreyfus taxable fixed income team makes investment decisions for the fund.
No individual team member is primarily responsible for making these investment
decisions. The portfolio managers comprising the team are identified in the
Statement of Additional Information.
Dreyfus has a personal securities trading policy (the "Policy") which restricts
the personal securities transactions of its employees. Its primary purpose is to
ensure that personal trading by Dreyfus employees does not disadvantage any
Dreyfus-managed fund. Dreyfus portfolio managers and other investment personnel
who comply with the Policy's preclearance and disclosure procedures may be
permitted to purchase, sell or hold certain types of securities which also may
be or are held in the fund(s) they advise.
Concepts to understand
YEAR 2000 ISSUES: these funds could be adversely affected if the computer
systems used by Dreyfus and the funds' other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
Dreyfus is working to avoid year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which a fund invests may be
adversely affected by year 2000-related problems. This could have an impact on
the value of a fund's investments and its share price.
9
<PAGE 9>
FINANCIAL HIGHLIGHTS
The following tables describe each fund's performance for the fiscal periods
indicated. "Total return" shows how much your investment in a fund would have
increased (or decreased) during each period, assuming you had reinvested all
dividends and distributions. These figures have been independently audited by
Ernst & Young LLP, whose report for each fund, along with each fund's financial
statements, is included in the annual report.
<TABLE>
<CAPTION>
Dreyfus Short Term Income Fund
YEAR ENDED JULY 31,
1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C>
PER-SHARE DATA ($)
Net asset value, beginning of period 12.12 12.03 11.86 11.89 11.94
Investment operations:
Investment income -- net .76 .84 .86 .78 .85
Net realized and unrealized
gain (loss) on investments (.47) .08 .17 (.04) (.05)
Total from investment operations .29 .92 1.03 .74 .80
Distributions:
Dividends from investment
income -- net (.78) (.83) (.86) (.77) (.85)
Net asset value, end of period 11.63 12.12 12.03 11.86 11.89
Total return (%) 2.52 7.92 8.95 6.42 7.05
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RATIOS/SUPPLEMENTAL DATA
Ratio of expenses
to average net assets (%) .87 .87 .80 .80 .61
Ratio of interest expense
to average net assets (%) .00* .02 .02 -- --
Ratio of net investment income
to average net assets (%) 6.54 7.01 7.28 6.52 7.26
Decrease reflected in above expense ratios
due to actions by Dreyfus (%) -- .00* .11 .14 .34
Portfolio turnover rate (%) 204.98 185.77 292.99 291.35 511.62
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Net assets, end of period ($ x 1,000) 358,444 358,726 279,142 189,693 210,524
* AMOUNT REPRESENTS LESS THAN .01%.
</TABLE>
10
<PAGE 10>
<TABLE>
<CAPTION>
Dreyfus Intermediate Term Income Fund
YEAR ENDED JULY 31,
1999 1998 1997 1996(1)
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<S> <C> <C> <C> <C>
PER-SHARE DATA ($)
Net asset value, beginning of period 13.38 13.23 12.22 12.50
Investment operations:
Investment income -- net .87 .91 .95 .46
Net realized and unrealized
gain (loss) on investments (.36) .47 1.01 (.28)
Total from investment operations .51 1.38 1.96 .18
Distributions:
Dividends from investment income -- net (.88) (.89) (.95) (.46)
Dividends from net realized gain on investments (.58) (.34) -- --
Total distributions (1.46) (1.23) (.95) (.46)
Net asset value, end of period 12.43 13.38 13.23 12.22
Total return (%) 4.18 10.93 16.70 3.05(2)
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RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average net assets (%) .65 .80 .52 --
Ratio of interest expense to average net assets (%) .08 .34 .06 --
Ratio of net investment income
to average net assets (%) 6.79 6.81 7.45 7.70(2)
Decrease reflected in above expense ratios
due to actions by Dreyfus (%) .51 .49 .98 2.50(2)
Portfolio turnover rate (%) 166.80 170.52 321.59 139.38(3)
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Net assets, end of period ($ x 1,000) 37,831 22,977 21,944 9,756
(1) FROM FEBRUARY 2, 1996 (COMMENCEMENT OF OPERATIONS) TO JULY 31, 1996.
(2) ANNUALIZED.
(3) NOT ANNUALIZED.
The Funds 11
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<PAGE 11>
Your Investment
ACCOUNT POLICIES
Buying shares
YOU PAY NO SALES CHARGES to invest in these funds. Your price for fund shares is
the net asset value per share (NAV), which is generally calculated as of the
close of trading on the New York Stock Exchange (usually 4:00 p.m. Eastern time)
every day the exchange is open. Your order will be priced at the next NAV
calculated after your order is accepted by the fund's transfer agent or other
authorized entity. The funds' investments are valued generally by using
available market quotations or at fair value, which may be determined by one or
more pricing services approved by each fund's board.
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Minimum investments
Initial Additional
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REGULAR ACCOUNTS $2,500 $100; $500 FOR
TELETRANSFER INVESTMENTS
TRADITIONAL IRAS $750 NO MINIMUM
SPOUSAL IRAS $750 NO MINIMUM
ROTH IRAS $750 NO MINIMUM
EDUCATION IRAS $500 NO MINIMUM
AFTER THE FIRST YEAR
DREYFUS AUTOMATIC $100 $100
INVESTMENT PLANS
All investments must be in U.S. dollars. Third-party checks cannot be accepted.
You may be charged a fee for any check that does not clear. Maximum TeleTransfer
purchase is $150,000 per day.
Concepts to understand
NET ASSET VALUE (NAV): a mutual fund's share price on a given day. A fund's NAV
is calculated by dividing the value of its net assets by the number of existing
shares.
THIRD-PARTY INVESTMENTS: If you invest through a third party (rather than
directly with Dreyfus), the policies and fees may be different than those
described here. Banks, brokers, 401(k) plans, financial advisers and financial
supermarkets may charge transaction fees and may set different minimum
investments or limitations on buying or selling shares. Consult a representative
of your plan or financial institution if in doubt.
12
<PAGE 12>
Selling shares
YOU MAY SELL (REDEEM) SHARES AT ANY TIME. Your shares will be sold at the next
NAV calculated after your order is accepted by the fund's transfer agent or
other authorized entity. Any certificates representing fund shares being sold
must be returned with your redemption request. Your order will be processed
promptly and you will generally receive the proceeds within a week.
BEFORE SELLING OR WRITING A CHECK FOR RECENTLY PURCHASED SHARES, please note
that if the fund has not yet collected payment for the shares you are selling,
it may delay sending the proceeds for up to eight business days or until it has
collected payment.
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Limitations on selling shares by phone
Proceeds
sent by Minimum Maximum
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CHECK NO MINIMUM $150,000 PER DAY
WIRE $1,000 $250,000 FOR JOINT
ACCOUNTS
EVERY 30 DAYS
TELETRANSFER $500 $250,000 FOR JOINT
ACCOUNTS
EVERY 30 DAYS
Written sell orders
Some circumstances require written sell orders along with signature guarantees.
These include:
* amounts of $1,000 or more on accounts whose address has been changed within
the last 30 days
* requests to send the proceeds to a different payee or address
Written sell orders of $100,000 or more must also be signature guaranteed.
A SIGNATURE GUARANTEE helps protect against fraud. You can obtain one from most
banks or securities dealers, but not from a notary public. For joint accounts,
each signature must be guaranteed. Please call us to ensure that your signature
guarantee will be processed correctly.
Your Investment 13
<PAGE 13>
ACCOUNT POLICIES (CONTINUED)
General policies
UNLESS YOU DECLINE TELEPHONE PRIVILEGES on your application, you may be
responsible for any fraudulent telephone order as long as Dreyfus takes
reasonable measures to verify the order.
EACH FUND RESERVES THE RIGHT TO:
* refuse any purchase or exchange request including those from any individual
or group who, in the fund's view, is likely to engage in excessive trading
(usually defined as more than four exchanges out of the fund within a
calendar year)
* refuse any purchase or exchange request in excess of 1% of the fund's total
assets
* change or discontinue its exchange privilege, or temporarily suspend this
privilege during unusual market conditions
* change its minimum investment amounts
* delay sending out redemption proceeds for up to seven days (generally
applies only in cases of very large redemptions, excessive trading or
during unusual market conditions)
Each fund also reserves the right to make a "redemption in kind" -- payment in
portfolio securities rather than cash -- if the amount you are redeeming is
large enough to affect fund operations (for example, if it represents more than
1% of the fund's assets).
Small account policies
To offset the relatively higher costs of servicing smaller accounts, each fund
charges regular accounts with balances below $2,000 an annual fee of $12. The
fee will be imposed during the fourth quarter of each calendar year.
The fee will be waived for: any investor whose aggregate Dreyfus mutual fund
investments total at least $25,000; IRA accounts; accounts participating in
automatic investment programs; and accounts opened through a financial
institution.
If your account falls below $500, your fund may ask you to increase your
balance. If it is still below $500 after 45 days, the fund may close your
account and send you the proceeds.
14
<PAGE 14>
DISTRIBUTIONS AND TAXES
EACH FUND USUALLY PAYS ITS SHAREHOLDERS dividends from its net investment income
once a month, and distributes any net capital gains it has realized once a year.
Your dividends and distributions will be reinvested in your fund unless you
instruct the fund otherwise. There are no fees or sales charges on
reinvestments.
FUND DIVIDENDS AND DISTRIBUTIONS ARE TAXABLE to most investors (unless your
investment is in an IRA or other tax-advantaged account). The tax status of any
distribution is the same regardless of how long you have been in the fund and
whether you reinvest your distributions or take them in cash. In general,
distributions are federally taxable as follows:
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Taxability of distributions
Type of Tax rate for Tax rate for
distribution 15% bracket 28% bracket or above
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INCOME ORDINARY ORDINARY
DIVIDENDS INCOME RATE INCOME RATE
SHORT-TERM ORDINARY ORDINARY
CAPITAL GAINS INCOME RATE INCOME RATE
LONG-TERM
CAPITAL GAINS 10% 20%
The tax status of your dividends and distributions will be detailed in your
annual tax statement from the fund.
Because everyone's tax situation is unique, always consult your tax professional
about federal, state and local tax consequences.
Taxes on transactions
Any sale or exchange of fund shares, including through the checkwriting
privilege, may generate a tax liability.
The table at right also can provide a guide for your potential tax liability
when selling or exchanging fund shares. "Short-term capital gains" applies to
fund shares sold or exchanged up to 12 months after buying them. "Long-term
capital gains" applies to shares sold or exchanged after 12 months.
Your Investment 15
<PAGE 15>
SERVICES FOR FUND INVESTORS
Automatic services
BUYING OR SELLING SHARES AUTOMATICALLY is easy with the services described
below. With each service, you select a schedule and amount, subject to certain
restrictions. You can set up most of these services with your application or by
calling 1-800-645-6561.
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For investing
DREYFUS AUTOMATIC For making automatic investments
ASSET BUILDER((reg.tm)) from a designated bank account.
DREYFUS PAYROLL For making automatic investments
SAVINGS PLAN through a payroll deduction.
DREYFUS GOVERNMENT For making automatic investments
DIRECT DEPOSIT from your federal employment,
PRIVILEGE Social Security or other regular
federal government check.
DREYFUS DIVIDEND For automatically reinvesting the
SWEEP dividends and distributions from
one Dreyfus fund into another
(not available for IRAs).
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For exchanging shares
DREYFUS AUTO- For making regular exchanges
EXCHANGE PRIVILEGE from one Dreyfus fund into
another.
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For selling shares
DREYFUS AUTOMATIC For making regular withdrawals
WITHDRAWAL PLAN from most Dreyfus funds.
Dreyfus Financial Centers
Through a nationwide network of Dreyfus Financial Centers, Dreyfus offers a full
array of investment services and products. This includes information on mutual
funds, brokerage services, tax-advantaged products and retirement planning.
Experienced financial consultants can help you make informed choices and provide
you with personalized attention in handling account transactions. The Financial
Centers also offer informative seminars and events. To find the Financial Center
nearest you, call 1-800-499-3327.
16
<PAGE 16>
Checkwriting privilege
YOU MAY WRITE REDEMPTION CHECKS against your account in amounts of $500 or more.
These checks are free; however, a fee will be charged if you request a stop
payment or if the transfer agent cannot honor a redemption check due to
insufficient funds or another valid reason. Please do not postdate your checks
or use them to close your account.
Exchange privilege
YOU CAN EXCHANGE SHARES worth $500 or more from one Dreyfus fund into another
(no minimum for retirement accounts). You can request your exchange in writing
or by phone. Be sure to read the current prospectus for any fund into which you
are exchanging. Any new account established through an exchange will have the
same privileges as your original account (as long as they are available). There
is currently no fee for exchanges, although you may be charged a sales load when
exchanging into any fund that has one.
Dreyfus TeleTransfer privilege
TO MOVE MONEY BETWEEN YOUR BANK ACCOUNT and your Dreyfus fund account with a
phone call, use the Dreyfus TeleTransfer privilege. You can set up TeleTransfer
on your account by providing bank account information and following the
instructions on your application.
24-hour automated account access
YOU CAN EASILY MANAGE YOUR DREYFUS ACCOUNTS, check your account balances,
transfer money between your Dreyfus funds, get price and yield information and
much more -- when it's convenient for you.
Retirement plans
Dreyfus offers a variety of retirement plans, including traditional, Roth and
Education IRAs. Here's where you call for information:
* for traditional, rollover, Roth and Education IRAs, call 1-800-645-656
* for SEP-IRAs, Keogh accounts, 401(k) and 403(b) accounts, call
1-800-358-0910
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INSTRUCTIONS FOR REGULAR ACCOUNTS
TO OPEN AN ACCOUNT
In Writing
Complete the application.
Mail your application and a check to:
The Dreyfus Family of Funds
P.O. Box 9387, Providence, RI 02940-9387
By Telephone
WIRE Have your bank send your investment to The Bank of New York, with
these instructions:
* ABA# 021000018
* Dreyfus Short Term Income Fund DDA# 8900117028
* Dreyfus Intermediate Term Income Fund DDA# 8900275944
* your Social Security or tax ID number
* name(s) of investor(s)
Call us to obtain an account number. Return your application.
Automatically
WITH AN INITIAL INVESTMENT Indicate on your application which automatic
service(s) you want. Return your application with your investment.
WITHOUT ANY INITIAL INVESTMENT Check the Dreyfus Step Program option on your
application. Return your application, then complete the additional materials
when they are sent to you.
Via the Internet
COMPUTER Visit the Dreyfus Web site http://www.dreyfus.com and follow the
instructions to download an account application.
TO ADD TO AN ACCOUNT
Fill out an investment slip, and write your account number on your check.
Mail the slip and the check to:
The Dreyfus Family of Funds
P.O. Box 105,
Newark, NJ 07101-0105
WIRE Have your bank send your investment to The Bank of New York, with these
instructions:
* ABA# 021000018
* Dreyfus Short Term Income Fund DDA# 8900117028
* Dreyfus Intermediate Term Income Fund DDA# 8900275944
* your account number
* name(s) of investor(s)
ELECTRONIC CHECK Same as wire, but insert "1111" before your account number.
TELETRANSFER Request TeleTransfer on your application. Call us to request your
transaction.
ALL SERVICES Call us to request a form to add any automatic investing service
(see "Services for Fund Investors"). Complete and return the forms along with
any other required materials.
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TO SELL SHARES
Write a redemption check OR letter of instruction that includes:
* your name(s) and signature(s)
* your account number
* the fund name
* the dollar amount you want to sell
* how and where to send the proceeds
Obtain a signature guarantee or other documentation, if required (see "Account
Policies -- Selling Shares").
Mail your request to:
The Dreyfus Family of Funds
P.O. Box 9671, Providence, RI 02940-9671
WIRE Be sure the fund has your bank account information on file. Call us to
request your transaction. Proceeds will be wired to your bank.
TELETRANSFER Be sure the fund has your bank account information on file. Call
us to request your transaction. Proceeds will be sent to your bank by electronic
check.
CHECK Call us to request your transaction. A check will be sent to the address
of record.
DREYFUS AUTOMATIC WITHDRAWAL PLAN Call us to request a form to add the plan.
Complete the form, specifying the amount and frequency of withdrawals you would
like.
Be sure to maintain an account balance of $5,000 or more.
To reach Dreyfus, call toll free in the U.S.
1-800-645-6561
Outside the U.S. 516-794-5452
Make checks payable to:
THE DREYFUS FAMILY OF FUNDS
You also can deliver requests to any Dreyfus Financial Center. Because
processing time may vary, please ask the representative when your account will
be credited or debited.
Concepts to understand
WIRE TRANSFER: for transferring money from one financial institution to another.
Wiring is the fastest way to move money, although your bank may charge a fee to
send or receive wire transfers. Wire redemptions from the fund are subject to a
$1,000 minimum.
ELECTRONIC CHECK: for transferring money out of a bank account. Your transaction
is entered electronically, but may take up to eight business days to clear.
Electronic checks usually are available without a fee at all Automated Clearing
House (ACH) banks.
Your Investment 19
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INSTRUCTIONS FOR IRAS
TO OPEN AN ACCOUNT
In Writing
Complete an IRA application, making sure to specify the fund name and to
indicate the year the contribution is for.
Mail your application and a check to:
The Dreyfus Trust Company, Custodian
P.O. Box 6427, Providence, RI 02940-6427
Automatically
WITHOUT ANY INITIAL INVESTMENT Call us to request a Dreyfus Step Program
form. Complete and return the form along with your application.
Via the Internet
COMPUTER Visit the Dreyfus Web site http://www.dreyfus.com and follow the
instructions to download an account application.
TO ADD TO AN ACCOUNT
Fill out an investment slip, and write your account number on your check.
Indicate the year the contribution is for.
Mail in the slip and the check (see "To Open an Account" at left).
By Telephone
WIRE Have your bank send your investment to The Bank of New York, with these
instructions:
* ABA# 021000018
* Dreyfus Short Term Income Fund DDA# 8900117028
* Dreyfus Intermediate Term Income Fund DDA# 8900275944
* your account number
* name of investor
* the contribution year
ELECTRONIC CHECK Same as wire, but insert "1111" before your account number.
TELEPHONE CONTRIBUTION Call to request us to move money from a regular Dreyfus
account to an IRA (both accounts must be held in the same shareholder name).
ALL SERVICES Call us to request a form to add an automatic investing service
(see "Services for Fund Investors"). Complete and return the form along with any
other required materials. All contributions will count as current year.
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TO SELL SHARES
Write a letter of instruction that includes:
* your name and signature
* your account number
* the fund name
* the dollar amount you want to sell
* how and where to send the proceeds
* whether the distribution is qualified or premature
* whether the 10% TEFRA should be withheld
Obtain a signature guarantee or other documentation, if required.
Mail in your request (see "To Open an Account" at left).
DREYFUS AUTOMATIC WITHDRAWAL PLAN Call us to request instructions to establish
the plan.
To reach Dreyfus, call toll free in the U.S.
1-800-645-6561
Outside the U.S. 516-794-5452
Make checks payable to:
THE DREYFUS TRUST COMPANY, CUSTODIAN
You also can deliver requests to any Dreyfus Financial Center. Because
processing time may vary, please ask the representative when your account will
be credited or debited.
Concepts to understand
WIRE TRANSFER: for transferring money from one financial institution to another.
Wiring is the fastest way to move money, although your bank may charge a fee to
send or receive wire transfers. Wire redemptions from the fund are subject to a
$1,000 minimum.
ELECTRONIC CHECK: for transferring money out of a bank account. Your transaction
is entered electronically, but may take up to eight business days to clear.
Electronic checks usually are available without a fee at all Automated Clearing
House (ACH) banks.
Your Investment 21
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For More Information
Dreyfus Short Term Income Fund
Dreyfus Intermediate Term Income Fund
-------------------------------------
SEC file number: 811-6718
More information on these funds is available free upon
request, including the following:
Annual/Semiannual Report
Describes a fund's performance, lists portfolio holdings
and contains a letter from the fund's manager discussing
recent market conditions, economic trends and fund
strategies that significantly affected the fund's
performance during the last fiscal year.
Statement of Additional Information (SAI)
Provides more details about a fund and its policies. A
current SAI is on file with the Securities and Exchange
Commission (SEC) and is incorporated by reference (is
legally considered part of this prospectus).
To obtain information:
BY TELEPHONE
Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to [email protected]
ON THE INTERNET Text-only versions of fund documents can be viewed online or
downloaded from:
SEC
http://www.sec.gov
DREYFUS
http://www.dreyfus.com
You can also obtain copies by visiting the SEC's Public Reference Room in
Washington, DC (phone 1-800-SEC-0330) or by sending your request and a
duplicating fee to the SEC's Public Reference Section, Washington, DC
20549-6009.
(c) 2000 Dreyfus Service Corporation 082-083P0300
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