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Through a recent Federal communication they announced, "Ending sales of paper bonds will save an estimated $70 million over the next five years and (this) is a continuation of (the) Treasury's allelectronic initiative." While State Bank of Cerro Gordo will no longer be able to submit paperwork for purchased bonds, we will be able to continue to redeem bonds. Below are some answers from the Treasury?s Frequently Asked Questions worksheet:

  • What happens to the previously issued paper bonds?
  • They are valid issues of the U.S. Treasury and will earn interest for 30 years or until redeemed. Paper bonds can be converted to electronic savings bonds in TreasuryDirect using a program called SmartExchangeŽ. There?s no charge to convert paper bonds. They won?t lose any of the interest earned, and they retain their original issue dates and interest rate terms.

  • What about customers who like to give savings bonds as gifts?
  • TreasuryDirect has a gift feature so customers can buy electronic savings bonds as gifts. The recipient of the gift must have a TreasuryDirect account (or be named on a minor linked account if under 18 years old) to receive the gift. Customers can hold bonds in their Gift Box area in TreasuryDirect until the bonds are electronically delivered.

  • What is TreasuryDirect?
  • TreasuryDirect is a secureWeb-based system that allows investors to establish accounts to purchase, hold and manage Treasury securities online. Investors can purchase Series EE and I savings bonds, Treasury bills, notes, bonds and TIPS (Treasury Inflation-Protected Securities ) through TreasuryDirect.

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For more information visit www.treasurydirect.gov.

 

 

 
 
     
                      
     
 
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