Spring Lake, New Jersey (PRWEB) May 29, 2014
Purchasing electronic U.S. Savings Bonds, especially as gifts, is too much of a hassle, says SavingsBonds.com. Since January 2012, the company has received numerous requests to bring back paper savings bonds as an alternative purchasing option to electronic bonds. Customers say purchasing digital bonds for another individual is too complicated.
With graduation and wedding season in full swing, savings bonds used to be a staple, quick and easy gift to obtain at a local bank or financial institution. Purchasing digital savings bonds as gifts now requires several steps; the purchaser must have an online Treasury account, the gift recipient has to set up an account online (if they dont already have one), the purchaser must provide his or her savings or checking account information, ask for personal information from the recipient, such as social security number or tax ID, deliver the digital bond to the recipient's online account, and (the option of) printing out a gift certificate from the Treasury website.
I am still bent out of shape about not being able to purchase savings bonds anymore without all of the hassle one would have to do to purchase one. It is just ridiculous about how the savings bonds are set up now, says J. Arrar. He adds, "I had for years purchased savings bonds for my children and grandchildren. It was a great gift for them but I am no longer doing it because of the big hassle about purchasing one. I never thought savings bonds would be put on the back burner and they didn't care whether people purchased them or not.
Electronic Series EE and I Bonds have been available for purchase since 2002. However, according to David Starck of the Treasury Department, for the calendar year 2011 (the last year savings bonds were sold at financial institutions), sales of paper and electronic bonds were $1,927,554,313 and $299,407,767, respectively. Clearly paper bonds sales were favored even though electronic bonds had been available for almost 10 years. Additionally, the number of electronic bonds sold in 2012 was 1,242,115 and dropped to 1,073,770 bonds in 2013.
While the Treasurys claim that the move to electronic bond sales (effective January 2012) will save taxpayers $70 million over the first five years, its too early to determine if Americans will embrace digital bond purchases, or will move to alternative gift ideas and investments. Only time will tell if going digital was a good financial decision.
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