Paperless Savings Bonds

The Treasury is launching a conversion from paper bonds to an online format. You'll be able to set up an account through the Treasury website. The account, known as Treasury Direct, will allow you to buy your bonds online and keep track of their value anytime you'd like. But, there are some other changes you should be aware of.

Treasury Direct

Buying Bonds
You can still buy bonds through a bank, but now you can also purchase them online. The Treasury website will walk you through the steps required to set up an account online and buy the bonds.

Tracking Bonds
Your account will allow you to log onto the Treasury website at any time, day or night, and check into your investments.

Redeeming Bonds
Currently, you can redeem your bonds whenever you want. Often, people hold onto them longer than they should, after they've matured and are no longer earning interest. If you set up a Treasury account, the government will redeem your bonds for you the day they mature, and deposit the money into your online account. Your taxes on your investment will become due at the end of the year.

Dollar Amounts Vary
Currently, you must buy bonds in fixed denominations, because they are printed up in advance. With the online accounts, the amount can vary, and need not be a round amount.

Not ready for the changes yet? It's ok. The plan is to phase out the paper documents, but it's not happening right away. For at least a little while, you have the option of buying the bond at the bank or through the Internet. If you're still not sold on the idea of making your investment a bond, we have some more information, which may help you decide.

Bond Benefits

Here are some reasons to think about investing in U.S. Savings Bonds:

Safety

You'll never have to worry about the security of your investment. They're backed by the United States government. Also, U.S. Savings Bonds can be replaced if they're lost, stolen, or destroyed.

Easy to buy

They're one of the easiest ways to invest. You can purchase U.S. Savings Bonds at any bank, or online.

Retirement

Savings Bonds can be an excellent asset in your retirement portfolio, especially bonds with an interest-earning life of 30-years.

Liquidity

If you need fast money, you can cash your bonds anytime after six months. However, there is a penalty if you cash a bond before holding it for five years.

Tax Benefits

The interest earned on U.S. Saving Bonds is exempt from all state and local income taxes.

Types of Bonds

Some information on the types of savings bonds available, at SavingsBonds.com.

Did You Know?

More than 55 million Americans have U.S. Savings Bonds.

Federal Consumer Information Center

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54% of parents say their children have U.S. Savings Bonds.

American Savings Education Council

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