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T. ROWE PRICE
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TAXABLE FIXED INCOME FUNDS
Supplement to Prospectuses dated October 1, 1995
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Effective July 15, 1996, the following paragraph will be added
under the section "Transaction Procedures and Special
Requirements" of each Prospectus.
Small Account Fee
Because of the disproportionately high costs of servicing
accounts with low balances, a $10 fee, paid to T. Rowe Price
Services, the fund's transfer agent, will automatically be
deducted from nonretirement accounts with balances falling below
a minimum level. The valuation of accounts and the deduction are
expected to take place during the last five business days of
September. The fee will be deducted from accounts with balances
below $2,000, except for UGMA/UTMA accounts, for which the limit
is $500. The fee will be waived for any investor whose aggregate
T. Rowe Price mutual fund investments total $25,000 or more.
Accounts employing automatic investing (e.g., payroll deduction,
automatic purchase from a bank account, etc.) are also exempt
from the charge. The fee will not apply to IRAs and other
retirement plan accounts. (A separate custodial fee may apply to
IRAs and other retirement plan accounts.)
The Taxable Fixed Income Funds consist of the following:
Corporate Income (prospectus dated October 30, 1995), GNMA, High
Yield, New Income, Personal Strategy, Prime Reserve, Short-Term
Bond, Short-Term U.S. Government, and U.S. Treasury Funds.
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The date of this Supplement is July 15, 1996.
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