Banks to no longer sell paper U.S. savings bonds

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Thank cost-cutting for this change to the U.S. savings bond program:

Starting next year, you won’t be able to buy paper savings bonds at banks and other financial institutions. Getting rid of this paper work is expected to save taxpayers more than $70 million in the next five years, the Bureau of Public Debt announced today.

You will still be able to buy savings bonds — but only an electronic version via TreasuryDirect.gov.

The government has been moving toward electronic bonds. Late last year, it stopped selling paper bonds through payroll deductions. Altogether this drive is expected in the next five years to save $120 million in printing, mailing, storage of bond stock and fees to financial institutions to process applications, the government said.

The Bureau of the Public Debt talks up the advantages to electronic transactions via TreasuryDirect. For instance, you don’t have to worry about losing paper bonds. You can still invest through payroll deductions, although it will be electronically. And you can invest in other types of Treasury securities through the site.

Copyright © 2014, Los Angeles Times
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