Farewell Paper I-Bonds: Savings Bonds Are Going Online-Only
Buying paper I-bonds with your income tax refund won't be possible from January 2025. Tax filers will still be able to buy I-bonds online, however.
Since 2012, when banks stopped selling paper savings bonds, buyers have been limited to making their purchases electronically, with one exception: You could buy up to $5,000 in paper series I savings bonds (I-bonds) with your IRS tax refund each year.
But starting January 1, 2025, that option will no longer be available.
Why are paper I-bonds being ditched?
The Tax Time Savings Bonds (TTSB) program was launched in 2010 to give tax filers the ability to buy paper I-bonds using their tax refunds. However, on average, only 35,000 people used this program to buy paper bonds each year, according to the IRS.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
That represented just 0.03% of all tax filers, and less than 10% of I-bond purchasers. The IRS says that running the program is costly and mailing paper bonds leaves them open to fraud, theft, loss and delays.
Can I still buy paper I-bonds if I haven’t filed my 2023 tax return yet?
Before the program ends, there’s still a chance to buy paper I-bonds if you received an extension to file your 2023 tax return with a deadline of October 15, 2024.
You’ll need to fill in IRS Form 8888, and your bonds will be mailed to you once your tax return has been processed.
What should I do with my existing paper I-bond(s)?
While there’s no obligation to do so, you can convert paper I-bonds to electronic bonds using TreasuryDirect. It’s free to do, and you’ll need to set up an account if you don’t already have one.
Be warned, however: TreasuryDirect can be hard to navigate. And if you’re not ready to go electronic, you can hold onto your paper I-bonds until you’re ready to cash them.
Should I buy electronic I-bonds in future?
At TreasuryDirect.gov, you can buy up to $10,000 in electronic I-bonds each year, and also $5,000 in I-bonds if you use your tax return to buy them. Bonds issued from May through October 2024 have a composite yield of 4.28%, including a fixed rate of 1.3% and an inflation rate (which adjusts every six months) of 1.48%.
In November, the Treasury Department will set a new semiannual inflation rate based on the consumer price index, as well as a fixed rate for bonds issued from November 2024 through April 2025.
While rates may not compare especially well to the best high-yield savings accounts and the best CD rates, which are giving returns over 5%, bonds are still considered a stable and low-risk option for growth.
Note: A version of this item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Lisa has been the editor of Kiplinger Personal Finance since June 2023. Previously, she spent more than a decade reporting and writing for the magazine on a variety of topics, including credit, banking and retirement. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.
- Charlotte GorboldKiplinger Contributor
-
Need More Money for Retirement? You May Have Already Saved It.
Over 29 million lost 401(k) accounts worth almost $1.65 trillion have been forgotten by their owners. Here are eight ways you can locate your account.
By Donna LeValley Published
-
Five Ways to Save for Retirement in 2025
If you did a poor job saving for retirement last year, don't despair. There are ways to build your nest egg in the new year.
By Donna Fuscaldo Published
-
The Wrong Money Question to Ask After Trump's Election
If you're wondering what moves to make with a new president moving into the White House, you're being dangerously shortsighted. Here's what to do instead.
By George Pikounis Published
-
An Investing Plan for This Year: Doing Less Can Lead to More
Achieve more when investing in 2025 by planning to work smarter, not harder. These three strategies can help put you on the right track and keep you there.
By David Booth Published
-
All About Six Types of Auto Insurance Coverage
Do you know what your auto insurance policy covers? Here's a primer on some coverage categories, along with examples of how each type of coverage works.
By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS Published
-
The Cheapest Places To Retire in the US
When you're trying to balance a fixed income with an enjoyable retirement, cost of living is a crucial factor to consider.
By Stacy Rapacon Published
-
The Best Bank ETFs to Buy
The best bank ETFs can offer above-average yields and reduce the complexities of investing in financial stocks.
By Tony Dong, MSc Published
-
Should You Use Add-On CDs?
Add-on CDs can be opened with as little as $100, offer a fixed interest rate and allow you to make deposits throughout the term. But what are the trade-offs?
By Ella Vincent Published
-
Social Security and Medicare Funding: Is the Sky Falling?
Social Security and Medicare are slowly running out of money, but what does that mean for the retirees counting on them? Actually, it's not all bad news.
By Jared Elson, Investment Adviser Published
-
What We Need to Do to Protect Retirees' Financial Security
Cognitive decline and aging in general put older retirees at risk of losing their financial security when they're the most vulnerable. What can be done?
By Margaret Franklin, CFA Published