WASHINGTON — More than 100,000 accounts have been opened in the first year of their availability that allow people to buy and hold savings bonds over the Internet — without receiving paper bonds, the Treasury Department saidlast week.
The accounts hold about $700 million worth of electronic securities, as of the 12 months ending in October, the department said.
Treasury has been working to make it easier for people to buy savings bonds online as part of a larger plan to someday stop selling new savings bonds in their paper form.
Even so, most people still buy their savings bonds from banks, in person .
"We understood that after decades of buying a paper bond, people were going to take some time to change old habits," said Paul Vogelzang, executive director of investor education and communications at Treasury’s Bureau of Public Debt.
"But acceptance of the electronic system has been steadily growing, with more than 7,000 new accounts opened in the most recent week, compared to a rate of less than 5,000 a week just a few months ago," he added.
People who set up "TreasuryDirect" accounts over the Internet can buy, hold, cash and manage regular EE savings bonds and inflation-indexed bonds, called I bonds, any time during the week.
To set up an account, a person must be 18 or older and must choose a bank from which funds would be withdrawn. Other information, including the person’s Social Security number and mailing address, must be provided. After the government verifies the information, an account can be opened.
"From start to finish, the secure application process takes less than 10 minutes, and once completed and an account is open, consumers don’t have to handle or keep track of paper bonds or other paperwork," Vogelzang said.
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