Treasury ends sale of paper U.S. savings bonds
Starting next year, you'll no longer be able to buy paper savings bonds at any financial institution, including Hutchinson Credit Union.
Paper savings bonds have been around since 1935, however starting Jan. 1, 2012, they will be replaced with electronic bonds. This is a decision made by the Treasury and, according to them, this decision will save taxpayers $70 million over the first five years alone!
"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 said in a statement. "It's time for us to take a 1935 model and make it a 21st century investment tool."
In 2012, you will only be able to buy electronic savings bonds in Series EE and I through TreasuryDirect, a free online bond-buying portal that has been available since 2002. The only exception is that you will still be able to use your tax refund to purchase Series I paper savings bonds.
If you hold a paper savings bond, do NOT put them in the shredder. The bonds can still be redeemed at financial institutions. Lastly, Paper bonds that have yet to reach their maturity date and have been lost, stolen or destroyed, may also be converted to electronic form.