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Money & Company

Last holiday season for paper savings bonds

By Tiffany Hsu
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This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.

Making their final appearance in Christmas stockings this season: paper U.S. savings bonds.

A popular and colorful gift for children, the securities will no longer be available at banks and other financial institutions or through mail-in orders after this year. Instead, starting in 2012, the Treasury Department will only offer Series EE or I bonds online through www.treasurydirect.gov.

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The move to electronic versions is projected to save $70 million over five years in printing, storage and processing fees, the government said. Last year, about 4.7 million people bought 9.4 million savings bonds over the counter.

The bond program originated during the Depression in 1935 as a way for the government to tamp down the federal debt.

Officials have already phased out sales of paper bonds through traditional employee payroll plans. Current holders will still be able to redeem their bonds, and lost ones can be reissued.

RELATED:

U.S. to Sell Series EE Bonds Via the Web

Treasury hacks interest rates on new savings bonds

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-- Tiffany Hsu

Money & Company
Tiffany Hsu

Tiffany Hsu is a former staff writer for the Los Angeles Times. Previously, she wrote about the California economy, fast food, restaurants, retail and alternative energy for the Business section. A Bay Area native, UC Berkeley graduate and eternal Nor-Cal fan, she once worked for the San Francisco Bay Guardian. She also did a stint at the Richmond Times-Dispatch, where she developed a passion for sweet tea. She still has faith that someday she’ll find two economists who agree.

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