Due to new U.S. Treasury Department regulations, U.S. Savings Bands will no long be sold at RiverHills Bank or any other financial institution after December 31, 2011.
Existing U.S. Savings Bonds purchased through RiverHills Bank are still valid and will earn interest for 30 years from the issue date or until redeemed. You can continue to cash your savings bonds at RiverHills Bank.
U.S. Savings Bonds are not going away all together, just the Paper Series EE and I Savings Bonds previously available at your local bank or via mail-in orders. As of January 1, 2012, electronic savings bonds can be purchased online exclusively at www.TreasuryDirect.gov
Frequently Asked Questions
Q: Why is the U.S. Department of the Treasury ending sales of paper savings bonds?
A: Ending sales of paper savings bonds will save taxpayers an estimated $70 million over the next five years. In addition, unlike paper savings bonds, electronic savings bonds aren’t easily lost or misplaced. And with TreasuryDirect, you can manage your savings securely online, anytime.
Q: Does this change end all sales of paper bonds?
A: Yes, with the exception of the Tax Time Bond Program introduced in 2010. Tax filers can purchase paper Series I Savings Bonds with their federal tax returns. Otherwise, there will be no other way to buy paper savings bonds.
Q: I already have paper savings bonds. What will happen to them?
A: Existing paper savings bonds are valid issues of the Treasury Department and will earn interest for 30 years from the issue date or until redeemed. You can redeem paper bonds at most local financial institutions. You also can convert your paper savings bonds to electronic savings bonds in TreasuryDirect using a program called SmartExchange. There’s no charge to convert paper bonds. No earned interest will be lost, and the bonds will keep their original issue date and current interest rate terms.
Q: I’ve been buying paper bonds to pay future college expenses. Can I still do so?
A: While paper savings bonds no longer will be available, the same education tax benefit and rules apply to electronic savings bonds in TreasuryDirect.
Q: I like to give savings bonds as gifts. Can I still do so?
A: Yes. You can buy electronic savings bonds as gifts in TreasuryDirect. You can hold the bonds in your gift box area in TreasuryDirect until you’re ready to electronically deliver them to the gift recipient. The recipient must have a TreasuryDirect account (or be named on a minor linked account if under 18 years old.)
Q: Will the annual savings bond purchase limit change, in light of the decision to stop selling paper savings bonds?
A: No. Savers can continue to purchase up to $5,000 of electronic Series EE Savings Bonds and $5,000 of electronic Series I Savings Bonds. Tax Filers could purchase an additional $5,000 using their tax refund.