PAPER SAVINGS BONDS TO BE DISCONTINUED
TreasuryDirect Press Release | July 13, 2011
The Bureau of the Public Debt has announced that as of January 1, 2012, paper savings bonds will no longer be sold at financial institutions. This action, which supports the U.S. Department of the Treasury's goal to increase the number of electronic transactions with citizens and businesses, will save American taxpayers approximately $70 million over the first five years.
BONDS STILL HAVE A FUTURE
Savings bonds are not going away. Electronic bonds in Series EE and I will remain available for purchase at TreasuryDirect, a secure, web-based system operated by Public Debt. "Savings bonds are very much a part of this country's history and culture, and will remain a part of America's future but in electronic form," said Public Debt Commissioner Van Zeck. Ending over-the-counter (OTC) sales is a continuation of Treasury's all-electronic initiative announced in April 2010. As part of the initiative, Treasury stopped the sale of paper bonds through traditional payroll plans, effective December 31, 2010. It is estimated that ending OTC bond sales will save a total of $120 million over the next five years.
TREASURYDIRECT PROVIDES MANAGEMENT OPTIONS
"Through TreasuryDirect, investors have an easy and convenient way to purchase and manage their bonds free of charge," Commissioner Zeck said. "Investors will no longer have to worry about misplacing, losing or storing paper savings bonds." Opening a TreasuryDirect account is free, and, once it's established, investors can: Buy, manage, and redeem Series EE and I electronic savings bonds. Convert Series EE and I paper savings bonds to the electronic format 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, bonds, and TIPS (Treasury Inflation-Protected Securities). Those currently holding paper savings bonds can still 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
For more information about the elimination of paper savings bonds and how to enroll in TreasuryDirect, visit www.treasurydirect.gov.
HERE TO HELP
Remember, you can still order and redeem bonds at Flanagan State Bank through the end of 2011. Bonds are a secure investment that make great gifts for new parents, childrens birthdays, weddings, etc. Stop by your local branch in Flanagan , El Paso, Benson, Bloomington, or Le Roy to order a savings bond or to assess the status of your current bonds, today.
FLANAGAN EL PASO BENSON BLOOMINGTON LE ROY
