AMERICAN CENTURY PREMIUM RESERVES INC
497K3B, 1999-04-28
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[front cover]

AMERICAN CENTURY

Fund Profile

[american century logo(reg. sm)]
American
Century

Premium Government Reserve Fund

This profile  summarizes key information  about the fund that is included in the
  fund's Prospectus. The fund's Prospectus includes additional information about
   the fund, including a more detailed  description of the risks associated with
         investing in the fund, that you may want to consider before you invest.

[three photos of bubble blowing woman and child,
business men, woman at computer]

                                                                  APRIL 25, 1999
                                                                  INVESTOR CLASS

 You may obtain the Prospectus and other  information  about the fund at no cost
  by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
   Investor Centers. See the back cover for additional telephone numbers and our
                                                                        address.


PREMIUM GOVERNMENT RESERVE FUND

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

    Premium  Government  Reserve is a money  market  fund that seeks to earn the
    highest  level  of  current  income  while  preserving  the  value  of  your
    investment.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

    The fund earns its income by investing in very short-term U.S. government
    securities. These securities are obligations of the U.S. government, its
    agencies and instrumentalities.

    Additional  information about Premium  Government  Reserve's  investments is
    available in its annual and  semiannual  reports.  In these reports you will
    find a discussion of the market  conditions and investment  strategies  that
    significantly  affected the fund's performance during the most recent fiscal
    period. You may get these reports at no cost by calling us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

    * An investment in the fund is not a bank deposit,  and it is not insured or
    guaranteed by the Federal Deposit Insurance  Corporation (FDIC) or any other
    government  agency.  Although  the fund seeks to preserve  the value of your
    investment at $1.00 per share,  it is possible to lose money by investing in
    the fund.

    *  Because  very  short-term  securities  are among  the  safest  securities
    available,  the  interest  they pay is among the  lowest  for  income-paying
    securities.  Accordingly,  the yield on this fund will  likely be lower than
    for funds that invest in longer-term or lower-quality securities.

    FUND PERFORMANCE

    The following bar chart shows the actual  performance of Premium  Government
    Reserve's  shares for each calendar year since the fund's inception on April
    1, 1993.  The bar chart  indicates the  volatility of the fund's  historical
    returns  from year to year.  The bar chart and the  performance  information
    below are not intended to indicate how the fund will perform in the future.

[bar chart]
    Calendar Year-By-Year Returns (1)
         1998         5.15%
         1997         5.20%
         1996         5.10%
         1995         5.63%
         1994         3.90%

         (1) As of March 31, 1999, the end of the most recent calendar  quarter,
             Premium Government Reserve's year-to-date return was 1.11%.

    The highest and lowest quarterly returns for the period reflected in the bar
    chart are:

                              Highest                 Lowest
    ---------------------------------------------------------------------------
    Premium Government
    Reserve                   1.42% (2Q 1995)         0.69% (1Q 1994)

    The following table shows the average annual return of the fund's shares for
    the periods  indicated.  The 90-Day  Treasury Bill Index, an unmanaged index
    that reflects no operating costs, is included as a benchmark for performance
    comparisons.  The index is derived from secondary  market  interest rates as
    published by the Federal Reserve Bank. For current performance  information,
    including yields, please call us or access our Web site.

                                   1 YEAR       5 YEARS       LIFE OF FUND(1)
    ---------------------------------------------------------------------------
     AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
    ---------------------------------------------------------------------------
     Premium Government Reserve    4.98%        5.08%         4.69%
     90-Day Treasury Bill Index    4.72%        5.09%         4.76%

        (1) The inception date for Premium Government Reserve is April 1, 1993.


Premium Government Reserve                    American Century Investments


4. WHAT ARE THE FUND'S FEES AND EXPENSES?

    There are no sales loads, fees or other charges

    * to buy fund shares directly from American Century

    * to reinvest dividends in additional shares

    * to exchange into the Investor Class shares of other American Century fund

    * to redeem your shares

    The following table describes the fees and expenses that you will pay if you
    buy and hold shares of the fund.

    ---------------------------------------------------------------------------
     ANNUAL FUND OPERATING EXPENSES
     (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
    ---------------------------------------------------------------------------
         Management Fee                                   0.45%
         Distribution and Service (12b-1) Fees            None
         Other Expenses(1)                                0.00%
         Total Annual Fund Operating Expenses             0.45%

     (1) Other  expenses,  which  include  the fees and  expenses  of the fund's
         independent directors,  their legal counsel, interest and extraordinary
         expenses, were less than 0.005% for the most recent fiscal year.

           EXAMPLE

             Assuming you . . .
             * invest $10,000 in the fund
             * redeem all of your shares at the end of the periods shown below
             * earn a 5% return each year
             * incur the same operating expenses as shown above
             . . . your cost of investing in the fund would be:

        1 year            3 years          5 years            10 years
    ---------------------------------------------------------------------------
        $46               $144             $252               $566

    Of course,  actual costs may be higher or lower. Use this example to compare
    the costs of investing in other funds.

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?

    American Century Investment  Management,  Inc. provides  investment advisory
    and  management  services  for the  fund.  American  Century  uses  teams of
    portfolio  managers,  assistant  portfolio  managers  and  analysts  working
    together to manage its mutual  funds.  The  portfolio  manager who leads the
    team that manages Premium Government Reserve is identified as follows:

    DENISE  TABACCO,  Portfolio  Manager,  has  been a  member  of  the  Premium
    Government  Reserve team since November 1995. She joined American Century in
    1988,  becoming  a member  of its  portfolio  department  in  1991.  She was
    promoted  to  Portfolio  Manager  in 1995.  She has a  bachelor's  degree in
    accounting from San Diego State University and an MBA in finance from Golden
    Gate University.

6. HOW DO I BUY FUND SHARES?

    *  Complete and return the enclosed application

    *  Call us and exchange shares from another American Century fund

    *  Call us and send your investment by bank wire transfer

    Your  initial  investment  must be at  least  $100,000.  If your  redemption
    activity  causes  the  value of your  account  to fall  below  this  account
    minimum, your shares may be redeemed involuntarily.

7. HOW DO I SELL FUND SHARES?

    You may sell all or part of your fund shares on any  business day by writing
    or  calling  us. You also may  exchange  your  shares in Premium  Government
    Reserve  for shares in nearly 70 other  mutual  funds  offered  by  American
    Century.  Depending  on the options  you select when you open your  account,
    some restrictions may apply. For your protection,  some redemption  requests
    require a signature guarantee.


Fund Profile                                     Premium Government Reserve


8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

    Dividends are declared and available for redemption daily.  Because the fund
    is a money  market  fund,  its  distributions  generally  will be  taxed  as
    ordinary income. If the fund's share price were to go up or down, its annual
    distributions also could include capital gains or losses.  Distributions are
    reinvested  automatically  in additional  shares  unless you choose  another
    option.

9. WHAT SERVICES ARE AVAILABLE?

    American Century offers several ways to make it easier  for you to manage
    your account, such as

     * telephone transactions 
     * wire and electronic funds transfers 
     * 24-hour Automated Information Line transactions
     * 24-hour online Internet account access and transactions

    You will find more information  about these choices in our Investor Services
    Guide,  which you may  request  by  calling  us,  accessing  our Web site or
    visiting one of our Investor Centers.

    Information   contained  in  our  Investor   Services   Guide   pertains  to
    shareholders  who invest directly with American  Century rather than through
    an employer-sponsored retirement plan or financial intermediary.

    If  you  own  or  are   considering   purchasing   fund  shares  through  an
    employer-sponsored  retirement plan or financial intermediary,  your ability
    to purchase  shares of the fund,  exchange them for shares of other American
    Century  funds,  and  redeem  them will  depend on the terms of your plan or
    financial  intermediary.  If  you  have  questions  about  investing  in  an
    employer-sponsored retirement plan or through a financial intermediary, call
    a Service Representative at 1-800-345-3533.

- --------------------------------------------------------------------------------

[american century logo(reg. sm)]
American
Century

AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575

AUTOMATED INFORMATION LINE
1-800-345-8765

FAX
816-340-7962

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485

BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353

Visit our Web site at WWW.AMERICANCENTURY.COM  [link to web site with arrow]

SH-PRF-16121   9904                                   Funds Distributor, Inc.
<PAGE>
[front cover]

AMERICAN CENTURY

Fund Profile

[american century logo(reg. sm)]
American
Century

Premium Bond Fund

This profile  summarizes key information  about the fund that is included in the
  fund's Prospectus. The fund's Prospectus includes additional information about
    the fund, including a more detailed description of the risks associated with
         investing in the fund, that you may want to consider before you invest.

[three photos of bubble blowing woman and child,
business men, woman at computer]

                                                                  APRIL 25, 1999
                                                                  INVESTOR CLASS

 You may obtain the Prospectus and other  information  about the fund at no cost
  by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
   Investor Centers. See the back cover for additional telephone numbers and our
                                                                        address.


PREMIUM BOND FUND

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

    Premium Bond seeks a high level of income from  investments  in  longer-term
    bonds and other debt instruments.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

    The fund  managers  invest  in a  variety  of high-  and  medium-grade  debt
    securities  payable in both U.S. and foreign  currencies.  Generally,  bonds
    (including corporate bonds and notes,  government  securities and securities
    backed by  mortgages  or other  assets)  make up at least 65% of the  fund's
    assets. Shorter-term debt securities round out the portfolio.

    The fund managers primarily invest in investment-grade  securities, that is,
    securities  rated in the  four  highest  categories  by  independent  rating
    organizations.  However,  the fund  managers  may  invest up to 15% of their
    assets in fifth-category-rated securities. The fund managers also may invest
    in  unrated  securities  if the fund  managers  determine  that  they are of
    equivalent credit quality.

    Three  basic   principles  of  fixed-income   investing  impact  the  fund's
    management.

    *  Bond prices generally move in the opposite direction of interest rates.

    *  The longer the maturity of a debt security, the higher its yield, but the
       greater its price volatility and risk.

    *  The lower the credit  quality of a debt  security,  the higher its yield,
       but the greater its price volatility and risk.

    In light of these  principles,  the fund managers pay close attention to the
    interest  rate  sensitivity  and credit  quality  of the  fund's  portfolio.
    Adjusted  duration  is one of the tools they use to gauge how much the value
    of the fund will change if interest  rates  change.  The higher the adjusted
    duration  number,  the more the  value of the fund will  change if  interest
    rates change. The weighted average adjusted duration of the fund's portfolio
    must be 3.5 years or longer.  During periods of rising interest  rates,  the
    fund managers may adopt a shorter portfolio  duration in order to reduce the
    effect of bond price  declines on the fund's value.  When interest rates are
    falling  and bond  prices  are  rising,  they may  adopt a longer  portfolio
    duration.

    Additional  information about Premium Bond's investments is available in its
    annual and semiannual  reports.  In these reports you will find a discussion
    of the  market  conditions  and  investment  strategies  that  significantly
    affected the fund's  performance  during the most recent fiscal period.  You
    may get these reports at no cost by calling us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

    * When  interest  rates  change,  the fund's  share value will be  affected.
    Generally,  when interest  rates rise,  the fund's share value will decline.
    The opposite is true when interest rates decline. This interest rate risk is
    higher for Premium  Bond than for funds that have shorter  weighted  average
    adjusted durations, such as money market and short-term bond funds.

    * The lowest  rated  bonds in which the fund may invest,  BBB- and  BB-rated
    bonds, contain some speculative  characteristics.  Having these bonds in the
    fund's  portfolio  means the fund's value may go down more if interest rates
    or  other  economic  conditions  change  than  if the  fund  contained  only
    higher-rated bonds.

    * As with all funds,  at any given time, the value of your shares of Premium
    Bond may be worth  more or less than the  price  you paid.  If you sell your
    shares when the value is less than the price you paid, you will lose money.

    * An investment in the fund is not a bank deposit,  and it is not insured or
    guaranteed by the Federal Deposit Insurance  Corporation (FDIC) or any other
    government agency.

    In summary, Premium Bond is designed for investors who want a bond fund with
    the  potential  for a higher level of income than is  generally  provided by
    money  market  or  short-term  bond  funds.  Investors  in the fund  must be
    prepared,  however,  to  weather  the  generally  greater  price  volatility
    associated with the longer-term bonds that the fund buys.

    FUND PERFORMANCE

    The  following  bar chart  shows the actual  performance  of Premium  Bond's
    shares for each calendar  year since the fund's  inception on April 1, 1993.
    The bar chart indicates the volatility of the fund's historical returns from
    year to year. The bar chart and the  performance  information  below are not
    intended to indicate how the fund will perform in the future.


Premium Bond                                  American Century Investments


[bar chart]
    Calendar Year-By-Year Returns (1)
         1998         7.85%
         1997         8.85%
         1996         2.73%
         1995        20.10%
         1994        -4.10%


        (1) As of March 31, 1999, the end of the most recent  calendar  quarter,
            Premium Bond's year-to-date return was -0.36%.

    The highest and lowest quarterly returns for the period reflected in the bar
    chart are:

                              Highest                 Lowest
    ---------------------------------------------------------------------------
    Premium Bond              6.82% (2Q 1995)         -3.47% (1Q 1994)

    The following table shows the average annual return of the fund's shares for
    the periods  indicated.  The Lehman Aggregate Bond Index, an unmanaged index
    that reflects no operating costs, is included as a benchmark for performance
    comparisons.  It consists of the Lehman  Government/Corporate  Index and the
    Lehman Mortgage-Backed  Securities Index and reflects the price fluctuations
    of Treasury  securities,  U.S. government agency securities,  corporate bond
    issues and mortgage-backed  securities. For current performance information,
    including yields, please call us or access our Web site.

                             1 YEAR         5 YEARS          LIFE OF FUND(1)
    ---------------------------------------------------------------------------
     AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
    ---------------------------------------------------------------------------
       Premium Bond          5.88%          7.47%            6.35%
       Lehman Aggregate
          Bond Index         6.44%          7.79%            6.87%

        (1) The inception date for Premium Bond is April 1, 1993.

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

    There are no sales loads, fees or other charges

    * to buy fund shares directly from American Century

    * to reinvest dividends in additional shares

    * to exchange into the Investor Class shares of other American Century fund

    * to redeem your shares

    The following table describes the fees and expenses that you will pay if you
    buy and hold shares of the fund.

    ---------------------------------------------------------------------------
     ANNUAL FUND OPERATING EXPENSES
     (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
    ---------------------------------------------------------------------------
         Management Fee                                 0.45%
         Distribution and Service (12b-1) Fees          None
         Other Expenses(1)                              0.00%
         Total Annual Fund Operating Expenses           0.45%

    (1) Other  expenses,  which  include  the fees and  expenses  of the  fund's
        independent directors,  their legal counsel,  interest and extraordinary
        expenses, were less than 0.005% for the most recent fiscal year.

           EXAMPLE

             Assuming you . . .
             * invest $10,000 in the fund
             * redeem all of your shares at the end of the periods shown below
             * earn a 5% return each year
             * incur the same operating expenses as shown above
             . . . your cost of investing in the fund would be:

         1 year            3 years          5 years            10 years
    ---------------------------------------------------------------------------
         $46               $144             $252               $566

             Of course, actual costs may be higher or lower. Use this example to
             compare the costs of investing in other funds.

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?

    American Century Investment  Management,  Inc. provides  investment advisory
    and  management  services  for the  fund.  American  Century  uses  teams of
    portfolio  managers,  assistant  portfolio  managers  and  analysts  working
    together to manage its mutual  funds.  The  portfolio  manager who leads the
    team that manages Premium Bond is identified follows:

    JEFFREY L. HOUSTON,  Vice President and Portfolio Manager, has been a member
    of the Premium Bond team since June 1995. He joined American Century in 1990
    as an Investment Analyst and was promoted in 1994 to Portfolio  Manager.  He
    has a  bachelor  of arts from the  University  of  Delaware  and an MBA from
    Syracuse University. He is a Chartered Financial Analyst.


Fund Profile                                                        Premium Bond


6. HOW DO I BUY FUND SHARES?

    *  Complete and return the enclosed application

    *  Call us and exchange shares from another American Century fund

    *  Call us and send your investment by bank wire transfer

    Your  initial  investment  must be at  least  $100,000.  If your  redemption
    activity  causes  the  value of your  account  to fall  below  this  account
    minimum, your shares may be redeemed involuntarily.

7. HOW DO I SELL FUND SHARES?

    You may sell all or part of your fund shares on any  business day by writing
    or calling us. You also may exchange  your shares in Premium Bond for shares
    in nearly 70 other mutual funds  offered by American  Century.  Depending on
    the options you select when you open your  account,  some  restrictions  may
    apply.  For your  protection,  some redemption  requests require a signature
    guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

    Dividends of net income are declared and  available  for  redemption  daily.
    They will be paid  monthly on the last  Friday of each month.  Premium  Bond
    pays  distributions of realized capital gains, if any, once a year,  usually
    in December.  Distributions may be taxable as ordinary income, capital gains
    or a  combination  of the two.  Capital  gains are taxed at different  rates
    depending on the length of time the fund held the securities that were sold.
    Distributions  are reinvested  automatically in additional shares unless you
    choose another option.

9. WHAT SERVICES ARE AVAILABLE?

    American Century offers several ways to make it easier  for you to manage
    your account, such as

    * telephone transactions 
    * wire and electronic funds transfers 
    * 24-hour Automated Information Line transactions
    * 24-hour online Internet account access and transactions

    You will find more information  about these choices in our Investor Services
    Guide,  which you may  request  by  calling  us,  accessing  our Web site or
    visiting one of our Investor Centers.

    Information   contained  in  our  Investor   Services   Guide   pertains  to
    shareholders  who invest directly with American  Century rather than through
    an employer-sponsored retirement plan or financial intermediary.

    If  you  own  or  are   considering   purchasing   fund  shares  through  an
    employer-sponsored  retirement plan or financial intermediary,  your ability
    to purchase  shares of the fund,  exchange them for shares of other American
    Century  funds,  and  redeem  them will  depend on the terms of your plan or
    financial  intermediary.  If  you  have  questions  about  investing  in  an
    employer-sponsored retirement plan or through a financial intermediary, call
    a Service Representative at 1-800-345-3533.

- --------------------------------------------------------------------------------

[american century logo(reg. sm)]
American
Century

AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575

AUTOMATED INFORMATION LINE
1-800-345-8765

FAX
816-340-7962

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485

BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353

Visit our Web site at WWW.AMERICANCENTURY.COM  [link to web site with arrow]

SH-PRF-16122   9904                                   Funds Distributor, Inc.
<PAGE>
[front cover]

AMERICAN CENTURY

Fund Profile

[american century logo(reg. sm)]
American
Century

Premium Capital Reserve Fund

This profile  summarizes key information  about the fund that is included in the
  fund's Prospectus. The fund's Prospectus includes additional information about
    the fund, including a more detailed description of the risks associated with
         investing in the fund, that you may want to consider before you invest.

[three photos of bubble blowing woman and child,
business men, woman at computer]

                                                                  APRIL 25, 1999
                                                                  INVESTOR CLASS

 You may obtain the Prospectus and other  information  about the fund at no cost
  by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
   Investor Centers. See the back cover for additional telephone numbers and our
                                                                        address.


PREMIUM CAPITAL RESERVE FUND

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

    Premium  Capital  Reserve  is a money  market  fund  that  seeks to earn the
    highest  level  of  current  income  while  preserving  the  value  of  your
    investment.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

    The fund  earns its income by  investing  in  high-quality,  cash-equivalent
    securities.   These   securities  are   short-term   obligations  of  banks,
    governments and corporations that are payable in U.S. dollars.

    Additional  information  about  Premium  Capital  Reserve's  investments  is
    available in its annual and  semiannual  reports.  In these reports you will
    find a discussion of the market  conditions and investment  strategies  that
    significantly  affected the fund's performance during the most recent fiscal
    period. You may get these reports at no cost by calling us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

    * An investment in the fund is not a bank deposit,  and it is not insured or
    guaranteed by the Federal Deposit Insurance  Corporation (FDIC) or any other
    government  agency.  Although  the fund seeks to preserve  the value of your
    investment at $1.00 per share,  it is possible to lose money by investing in
    the fund.

    *  Because  cash-equivalent  securities  are  among  the  safest  securities
    available,  the  interest  they pay is among the  lowest  for  income-paying
    securities.  Accordingly,  the yield on this fund will  likely be lower than
    for funds that invest in longer-term or lower-quality securities.

    FUND PERFORMANCE

    The  following  bar chart shows the actual  performance  of Premium  Capital
    Reserve's  shares for each calendar year since the fund's inception on April
    1, 1993.  The bar chart  indicates the  volatility of the fund's  historical
    returns  from year to year.  The bar chart and the  performance  information
    below are not intended to indicate how the fund will perform in the future.

[bar chart]
    Calendar Year-By-Year Returns (1)
         1998         5.29%
         1997         5.31%
         1996         5.16%
         1995         5.70%
         1994         3.97%


       (1) As of March 31, 1999,  the end of the most recent  calendar  quarter,
           Premium Capital Reserve's year-to-date return was 1.15%.

    The highest and lowest quarterly returns for the period reflected in the bar
    chart are:

                              Highest                 Lowest
    ---------------------------------------------------------------------------
    Premium Capital
    Reserve                   1.43% (2Q 1995)         0.72% (1Q 1994)

    The following table shows the average annual return of the fund's shares for
    the periods  indicated.  The 90-Day  Treasury Bill Index, an unmanaged index
    that reflects no operating costs, is included as a benchmark for performance
    comparisons. It is derived from secondary market interest rates as published
    by the Federal Reserve Bank. For current performance information,  including
    yields, please call us or access our Web site.


                                   1 YEAR        5 YEARS       LIFE OF FUND(1)
    ---------------------------------------------------------------------------
     AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED MARCH 31, 1999)
    ---------------------------------------------------------------------------
     Premium Capital Reserve       5.14%         5.18%         4.78%
     90-Day Treasury Bill Index    4.72%         5.09%         4.76%

        (1) The inception date for Premium Capital Reserve is April 1, 1993.

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

    There are no sales loads, fees or other charges

    * to buy fund shares directly from American Century

    * to reinvest dividends in additional shares

    * to exchange into the Investor Class shares of other American Century fund

    * to redeem your shares


Premium Capital Reserve                       American Century Investments


    The following table describes the fees and expenses that you will pay if you
    buy and hold shares of the fund.

    ---------------------------------------------------------------------------
     ANNUAL FUND OPERATING EXPENSES
     (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
    ---------------------------------------------------------------------------
         Management Fee                                   0.45%
         Distribution and Service (12b-1) Fees            None
         Other Expenses(1)                                0.00%
         Total Annual Fund Operating Expenses             0.45%


     (1) Other  expenses,  which  include  the fees and  expenses  of the fund's
         independent directors,  their legal counsel, interest and extraordinary
         expenses, were less than 0.005% for the most recent fiscal year.

           EXAMPLE

             Assuming you . . .
             * invest $10,000 in the fund
             * redeem all of your shares at the end of the periods shown below
             * earn a 5% return each year
             * incur the same operating expenses as shown above
             . . . your cost of investing in the fund would be:

          1 year           3 years         5 years           10 years
    ---------------------------------------------------------------------------
          $46              $144            $252              $566

             Of course, actual costs may be higher or lower. Use this example to
             compare the costs of investing in other funds.

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?

    American Century Investment  Management,  Inc. provides  investment advisory
    and  management  services  for the  fund.  American  Century  uses  teams of
    portfolio  managers,  assistant  portfolio  managers  and  analysts  working
    together to manage its mutual  funds.  The  portfolio  manager who leads the
    team that manages Premium Capital Reserve is identified as follows:

    JOHN F. WALSH, Portfolio Manager, has been a member of the team that manages
    Premium  Capital  Reserve  since May 1997.  He joined  American  Century  in
    February 1996 as an Investment  Analyst,  a position he held until May 1997.
    At that time he was promoted to Portfolio Manager. Prior to joining American
    Century,  Mr.  Walsh served as an Assistant  Vice  President  and Analyst at
    First Interstate Bank, Los Angeles,  California.  He has a bachelor's degree
    in marketing  from Loyola  Marymount  and an MBA in finance  from  Creighton
    University.

6. HOW DO I BUY FUND SHARES?

    *  Complete and return the enclosed application

    *  Call us and exchange shares from another American Century fund

    *  Call us and send your investment by bank wire transfer

    Your  initial  investment  must be at  least  $100,000.  If your  redemption
    activity  causes  the  value of your  account  to fall  below  this  account
    minimum, your shares may be redeemed involuntarily.

7. HOW DO I SELL FUND SHARES?

    You may sell all or part of your fund shares on any  business day by writing
    or calling us. You also may exchange your shares in Premium  Capital Reserve
    for shares in nearly 70 other  mutual  funds  offered by  American  Century.
    Depending  on the  options  you  select  when you open  your  account,  some
    restrictions  may  apply.  For your  protection,  some  redemption  requests
    require a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

    Dividends are declared and available for redemption daily.  Because the fund
    is a money  market  fund,  its  distributions  generally  will be  taxed  as
    ordinary income. If the fund's share price were to go up or down, its annual
    distributions also could include capital gains or losses.  Distributions are
    reinvested  automatically  in additional  shares  unless you choose  another
    option.


Fund Profile                                        Premium Capital Reserve


9. WHAT SERVICES ARE AVAILABLE?

    American Century offers several ways to make it easier  for you to manage
    your account, such as

    * telephone transactions 
    * wire and electronic funds transfers 
    * 24-hour Automated Information Line transactions
    * 24-hour online Internet account access and transactions

    You will find more information  about these choices in our Investor Services
    Guide,  which you may  request  by  calling  us,  accessing  our Web site or
    visiting one of our Investor Centers.

    Information   contained  in  our  Investor   Services   Guide   pertains  to
    shareholders  who invest directly with American  Century rather than through
    an employer-sponsored retirement plan or financial intermediary.

    If  you  own  or  are   considering   purchasing   fund  shares  through  an
    employer-sponsored  retirement plan or financial intermediary,  your ability
    to purchase  shares of the fund,  exchange them for shares of other American
    Century  funds,  and  redeem  them will  depend on the terms of your plan or
    financial  intermediary.  If  you  have  questions  about  investing  in  an
    employer-sponsored retirement plan or through a financial intermediary, call
    a Service Representative at 1-800-345-3533.

- --------------------------------------------------------------------------------

[american century logo(reg. sm)]
American
Century

AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575

AUTOMATED INFORMATION LINE
1-800-345-8765

FAX
816-340-7962

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485

BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353

Visit our Web site at WWW.AMERICANCENTURY.COM  [link to web site with arrow]

SH-PRF-16123   9904                                   Funds Distributor, Inc.


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