The Treasury Department Ends Paper US Savings Bonds
December 2nd, 2011 by David Waring
Until 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.
Opening an account with Treasury Direct is free and once established, investors can:
- Convert Series EE and I paper bonds to electronic ones.
- Purchase, manage and sell Series EE and I savings bonds.
- Enroll in an automated payroll savings plan for purchasing bonds.
- Invest in all other U.S. Treasury securities.
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.
Frank
December 12, 2011
The website is actually http://www.TreasuryDirect.gov, NOT http://www.TreasuryDirect.com
Learn Bonds
December 12, 2011
Thank you for pointing that out, this has been corrected.
Dave
Charles
December 28, 2011
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
February 24, 2012
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.
KC
May 10, 2012
A very valid point and one that I bet is being counted on!
Lily
March 4, 2012
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.
KC
May 10, 2012
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!
jane
June 3, 2012
this way of purchasing saving bonds is ridiculous! i will not ever give bonds again as gifts
Lois
February 3, 2013
If some one that has saving bonds and die who can cash the bonds?
David Waring
February 4, 2013
Hi,
If the owner of the bond has died, then the bond goes to the beneficiary listed when the bond was purchased. If there is not a beneficiary listed, the bond passes to the estate of the deceased owner.
You can read more here:
http://www.learnbonds.com/how-to-cash-in-savings-bonds/
Hope that helps. Let us know if there are any other questions.
Best Regards,Dave
Aldl935
February 3, 2013
who can cash your bonds if you die?