The Treasury Department Ends Paper US Savings Bonds

the end of paper savings bondsUntil the beginning of 2012, you have the option of purchasing US Savings Bonds in both paper form and electronically.  There are some slight differences between the two, including the denominations sold and at what value.  Purchasing paper bonds however is about to be a thing of the past.

As of January 1st, 2012, you will not be able to buy paper savings bonds.

Ending over-the-counter (OTC) sale of paper bonds at financial institutions is part of the Treasury’s initiative to go electronic in an effort to cut costs in areas such as printing, mailing, storing and processing fees paid to financial institutions.  In fact, it is estimated that ending the sales of OTC bonds and converting old paper bonds to electronic ones will save a total of $120 million over the next five years.

Going electronic means investors will no longer have to worry about storing or losing paper bonds.  In order to purchase U.S. Savings Bonds electronically, an account must be opened through TreasuryDirect.gov.

Opening an account with Treasury Direct is free and once established, investors can:

If you currently have paper savings bonds you can either convert them to electronic ones or continue to redeem that at financial institutions.  If a bond which has not yet matured has been lost or destroyed, you may have them reissued in either paper or electronic form.

Want to check the value of your savings bonds? Try Our US Savings Bonds Calculator

 

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Comments

  1. Charles says

    I think this is a boondoggle by the government. I was Executor of an estate and would not have known about any bonds if I had not found the Paper Bonds in her effects. How many estates will lose the value of the Bonds if no one knows they are there. There should be some Paper Trail such as a certificate for those left behind to find.

    • BL says

      Dont’ agree. Today you NEED to review and document your online affairs.
      How many of us have signed up for electronic statements from banks, brokers, credit cards etc. The days of shoe boxes full of paper statements are over.

  2. Lily says

    Credit cards should never be used as a loan! In aiddtion to that $24 fee, you’ll pay monthly interest on that debt that will ratchet up your debt quickly. The interest on a savings account is pretty measley right now if you have no other cash, that is probably your best option.

  3. KC says

    This is insanity! I notice an area for reporting “login porblems”. when the feathers hit the fan will it all just get unplugged? To heck with this I will no longer be purchasing bonds which are only in cyberspace- yet another vehicle for savings lost to the average investor. I thought it had all gone nuts when they stopped printing pass books. HORRIBLE!

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