SACRAMENTO, Calif. — It’s the end of an era. As of Saturday, it’ll no longer be possible to walk into a bank or credit union and buy a U.S. savings bond in paper form. Starting Monday, savings bonds can only be purchased online.
The paperless shift is designed to save the U.S. Treasury an estimated $120 million in the next five years, as well as help protect consumers against loss or theft of their paper bonds.
It ends a 76-year-old tradition of paper savings bonds, which made their first appearance in 1935 under President Franklin D. Roosevelt. But going electronic-only doesn’t change the basics of buying or redeeming savings bonds, says the Treasury. Buyers can still purchase annually up to $5,000 of new Series EE and Series I bonds. Savings bonds can be bought as gifts (but are held electronically until ready to be gifted).
Existing paper bonds can still be redeemed at financial institutions and will continue to earn interest for up to 30 years from date of issue.
The only exception to the new rule is for tax filers, who can purchase paper Series I savings bonds using their federal tax refunds.
The switch follows last year’s move by the federal government to eliminate paper Social Security checks for new recipients and instead deposit them electronically into bank accounts.
To purchase and redeem bonds electronically, you’ll need to set up a TreasuryDirect account, using your Social Security number and a savings or checking account where funds can be deposited.
For details, go to www.treasurydirect.gov.
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