Effective January 1, 2012, paper savings bonds ceased being sold at DATCU and all other financial institutions. The U.S. Treasury department made this decision in an effort to increase the number of electronic transactions resulting in millions of dollars in savings for the American taxpayer. According to Public Debt Commissioner Van Zeck, “Savings bonds are very much a part of this country’s history and culture, and will remain a part of America’s future ‘ but in an electronic form.”
The first step, if you already have paper savings bonds, is to convert them to electronic. SmartExchange allows TreasuryDirect account owners to convert their Series E, EE and I Bonds to electronic securities in a special Conversion Linked Online Account. Once you create your online account, you\’ll have 24-hour online access to manage your investments, without having to keep track of paper securities / bonds.
If you’re a TreasuryDirect account owner, you can exchange paper savings bonds on which you are the owner, co-owner, or the owner with a beneficiary. As an account owner, you can also convert paper savings bonds purchased as gifts for someone else, or bonds you have obtained through inheritance or other source.
The process is very user-friendly and very simple. Just follow these simple steps:
The great news is that as an investor, you won’t have to be concerned about losing or keeping track of your paper savings bonds.
For more information about the elimination of paper savings bonds and how to enroll in TreasuryDirect, visit www.treasurydirect.gov .