If you’ve ever received a paper savings bond as a gift or stumbled upon an old one tucked away in a drawer, you might wonder: What should I do with this? Paper savings bonds can be a great way to save or grow money, but managing them properly is essential. In this blog, we’ll cover the basics of paper savings bonds, how to transfer them electronically, and how to keep them safe.

What Are Paper Savings Bonds?

Savings bonds are a low-risk way to save money, backed by the U.S. government. Paper savings bonds, once a common way to invest, are no longer issued, as the U.S. Treasury moved to an electronic system in 2012. However, millions of Americans still hold these valuable paper assets. Common types of paper savings bonds include Series EE and Series I bonds, which earn interest over time. They are often given as gifts or used for long-term savings goals like education or retirement.

Step 1: Decide What to Do With Your Paper Savings Bonds

There are three main options for your paper savings bonds:

  1. Hold onto them: If your bond hasn’t reached maturity, it will continue to earn interest until it matures or reaches its maximum earning potential (usually 30 years).
  2. Cash them in: If your bond has matured and stopped earning interest, it’s time to redeem it.
  3. Transfer them to an electronic account: For safety and convenience, consider converting your paper bonds into electronic form through the U.S. Treasury’s secure platform, TreasuryDirect.

Step 2: Transfer Your Paper Bonds to TreasuryDirect

Transferring your bonds electronically has several benefits:

  • Security: Electronic bonds can’t be lost, stolen, or damaged.
  • Ease of management: Track your bonds and interest earnings online.
  • Convenience: Cash them out or manage them without mailing or visiting a bank.

Here’s how to transfer your paper savings bonds to TreasuryDirect:

  1. Set Up a TreasuryDirect Account
    • Visit TreasuryDirect.gov and create an account. It’s free, and you’ll need your Social Security number, email address, and bank account information for transactions.
  2. Log In and Navigate to the Transfer Tool
    • Once logged in, look for the “ManageDirect” tab. Under this, select “How Do I Convert Paper Bonds?”
  3. Complete the Conversion Process
    • Print and complete the “SmartExchange” form provided on the website. This form authorizes the Treasury to convert your paper bonds into electronic ones.
    • Mail your completed form and the original paper bonds to the address specified by TreasuryDirect.
  4. Track Your Bonds Online
    • Once your bonds are converted, you can log into your account to view them and monitor interest earnings.

Step 3: Safeguard Your Paper Bonds If You’re Keeping Them

If you prefer to hold onto your paper bonds instead of transferring them electronically, keeping them safe is critical. Here are a few tips:

  1. Store Them in a Secure Location
    • Use a fireproof and waterproof safe at home, or consider storing them in a safe deposit box at a bank.
  2. Create Digital Backups
    • Scan or photograph your bonds and save the images in a secure cloud storage or on an external hard drive. This won’t replace the bonds but will make it easier to recover their details if lost.
  3. Keep Track of Maturity Dates
    • Savings bonds stop earning interest after a set period. Write down the maturity dates or set reminders to cash them in when they stop growing.
  4. Replace Lost, Stolen, or Damaged Bonds
    • If your bonds are lost or damaged, you can request a replacement by filling out Form FS 1048, available on TreasuryDirect.

Step 4: Cashing In Your Bonds

When you’re ready to redeem your bonds, you have two options:

  • At a bank: For paper bonds, many banks can cash them for you. Bring valid identification and the bond itself.
  • Through TreasuryDirect: If your bond is electronic, cashing it in is a simple process that transfers the money directly to your linked bank account.

Final Thoughts

Paper savings bonds may seem old-fashioned, but they’re still a valuable asset. Whether you decide to hold onto them, cash them in, or transfer them to an electronic account, managing your bonds properly ensures they stay safe and continue to work for you. By converting them to electronic form, you can simplify the process and protect your investment. And if you decide to keep the paper versions, taking steps to secure and track them will ensure they remain a solid part of your financial plan.

Have any savings bond success stories or questions? Share them in the comments!