As of January 1, 2012, paper savings bonds will no longer be sold at financial institutions. According to the U.S. Treasury Department, this will save taxpayers approximately $70 million over the first five years.
Savings Bonds, introduced in 1935, are not going away. Electronic savings bonds in Series EE and I will remain available through purchase in Treasury Direct, a secure, web- based system where some investors have been purchasing savings bonds since 2002.
Through Treasury Direct, customers have an easy and convenient way to purchase and manage their bonds. They will no longer have to worry about misplacing, losing or storing paper savings bonds.
Opening a Treasury Direct account is free, and, once it is established, investors can:
- Buy, manage, and redeem Series EE and I electronic savings bonds.
- Convert Series EE and I paper savings bonds to electronic through the Smart Exchange feature.
- Purchase electronic savings bonds as a gift.
- Enroll in a payroll savings plan for purchasing electronic bonds.
- Invest in other Treasury securities such as bills, notes and bonds.
Those currently holding paper savings bonds can continue to redeem them at financial institutions. Bonds, which have not matured, but were lost, stolen or destroyed, can be reissued in paper or electronic form.
For more information about the elimination of paper savings bonds and how to enroll in Treasury Direct, you can go to www.treasurydirect.gov.