Posted on Wednesday, June 27, 2012
The U.S. Department of the Treasury is ending sales of paper savings bonds. Paper Series EE and I Savings Bonds will no longer be sold through financial institutions or mail-in orders after December 31, 2011. Savings bonds aren’t going away, though. You can purchase electronic savings bonds online through TreasuryDirect at www.treasurydirect.gov.
Why end sales of paper savings bonds?
Ending sales of paper savings bonds will save taxpayers an estimated $70 million over the next five years. In addition, unlike paper savings bonds, electronic bonds aren’t easily lost or misplaced. And with TreasuryDirect, you can manage your savings securely online, anytime.
What will happen to the paper savings bonds I already have?
Existing paper savings bonds are valid issues of the Treasury Department and will earn interest for 30 years from the issue date or until redeemed. You can continue to redeem paper bonds at Ossian State Bank. You also can convert your paper savings bonds to electronic savings bonds in TreasuryDirect using a program called SmartExchange. There’s no charge to convert paper bonds. No earned interest will be lost, and the bonds will keep their original issue dates and current interest rate terms.
Can I still give savings bonds as gifts?
Yes. You can buy electronic savings bonds as gifts in TreasuryDirect. The recipient must have a TreasuryDirect account (or be named on a minor linked account if under 18 years old).
What is TreasuryDirect
TreasuryDirect is a secure web-based system through which you can establish accounts to purchase, hold, and manage Treasury securities online, anytime. In TreasuryDirect, you can purchase Series EE and I Savings Bonds, Treasury bills, notes, bonds and TIPS (Treasury Inflation-Protected Securities).
How do I sign up for a TreasuryDirect account?
You can apply for a TreasuryDirect account in just three steps at www.treasurydirect.gov. You will need your social security number, e-mail address and bank account and routing number.
How can I learn more?
To learn more about electronic savings bonds, Treasury securities or TreasuryDirect, visit www.treasurydirect.gov.