U.S. Savings Bonds Going Paperless

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14th Apr 2012

Did you know that starting this year, paper savings bonds will no longer be sold at banks and other financial institutions?   

Series EE and I electronic savings bonds can be purchased in “TreasuryDirect” accounts.  If you currently hold paper savings bonds, you are able to redeem them as usual at financial institutions.  Bonds that have not matured, but were lost, stolen, or destroyed, can be reissued in either paper or electronic form.

You should review your bond holdings to ensure that they are still earning interest.  All Series E bonds have reached final maturity and are no longer earning interest.  Series EE Bonds were first issued in 1980, and reach their final maturity 30 years from date of issue.  This means that all Series EE Bonds issued in 1980 and 1981 are fully matured, and not earning interest going forward.

Most financial experts agree that you should cash in any Savings Bonds that no longer earn interest.  However, check with your CPA or qualified tax advisor, as cashing in old bonds is usually a taxable event.

The U.S. Treasury Department has online tools for evaluating U.S. Savings Bonds at http://savingsbonds.gov/indiv/tools/tools.htm  

Dwight Edward Tompkins
Estate Planning Attorney

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