When each of my three children were born, a thick envelope arrived in the mail from my grandma. Inside was a carefully selected card welcoming the new addition to the family, and a $500 Series EE savings bond.
Come Jan 1, great grandmas around the country won't have that option.
The U.S. Treasury announced Wednesday that it will cease issuing paper savings bonds at the end of this year.
Bonds will be available in electronic form through payroll purchase programs at work and through Treasurydirect.gov.
Officials estimate that ending the sale of paper bonds will save taxpayers $70 million in the first five years. Add that to the savings from ending the purchase of paper bonds at work the total amount saved jumps to $120 million. The savings comes from not having to print, mail, or store bonds, or pay financial institutions for processing bond applications.
While it's great that the government is finding ways to streamline and reduce costs, it makes savings bonds out of reach for my Grandma, who has opted out of the digital revolution. I'm sure there are plenty of others like her who don't have, or can't afford internet access. And I certainly wouldn't reserve my e-commerce for the public computers at my library.
USA Today personal finance columnist Sandra Block notes that just 11 percent of the $1.2 billion in Savings Bonds purchased from October 2010 to June 30, 2011 were purchased online. Makes you wonder how many consumers will forgo savings bonds for another option once this change goes into effect.
