Saturday, July 16, 2011

No more paper U.S. Savings bonds starting in 2012

Do you own savings bonds or even buy them occasionally as gifts?  Starting January 1, you'll need to give up the idea of going to a bank to buy them in paper format.  Instead, they'll be electronic only, a move that is reported by CNN Money to save $70-120 million dollars over the next 5 years (their article wasn't entirely clear on that point).  The one exception:  You can still use your tax refund to buy paper bonds, which in my humble opinion defeats the purpose of going all electronic.

Have paper bonds now?  Hold on to them because you'll still be able to redeem them at banks.  You can also convert lost bonds into electronic ones if you've misplaced them.

I can appreciate the cost-saving measures, but I wish they'd still allow an easy way to buy a paper bond.  Granted, if you bought one as a gift at a bank, it took a few weeks for the actual bond to show up in the gift recipient's mail box.  As a gift now, I just don't see it as an easy, viable option.

What do you think of this move?  Are you comfortable with the idea of not having an actual piece of paper to redeem when mature? 
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