US paper savings bonds sale to end in 2012, online transaction to save money

By Angel Cuala on Jul 14, 2011 in Finance, United States • No comments

Buying of paper savings bonds from US banks and credit unions will end starting 2012, and will be replaced by online transaction which the government said can save a lot of money.

US paper savings bonds
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According to a press release at TreasuryDirect.gov on Wednesday, July 13, 2011, the US Bureau of the Public Debt said paper savings bonds will no longer be sold at financial institutions starting January 1, 2012.

As noted in the report, the move is a big help to the goal of the country’s Department of the Treasury to save money, as online transaction means an approximate $70-million savings over the first five years.

Apparently, the US Treasury has been noted to have stopped the sale of paper savings bonds through traditional payroll plans, effective December 31, 2010.

However, the agency noted that the 75-year old savings bonds will not be obsolete but will be sold online 24/7 via TreasuryDirect.gov, as being operated by the Public Debt bureau since 2002.

“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,” Public Debt Commissioner Van Zeck was quoted on the report.

“It’s time for us to take a 1935 model and make it a 21st century investment tool.” Zeck added, noting that investors will now have an easier way to but and manage their bonds, free of charge.

“Through TreasuryDirect, investors will no longer have to worry about misplacing, losing or storing paper savings bonds.” Zeck explained further.