Why is Treasury discontinuing the issuance of paper bonds through payroll savings plans?
With TreasuryDirect, Treasury can continue to offer employees the convenience of payroll savings while reducing the cost of the savings bond program. Employees have the benefit of regularly investing in savings bonds or using their payroll contributions to purchase a broader range of securities. Savings bonds in TreasuryDirect are electronic securities in an account; they have all of the benefits of paper bonds but can’t be misplaced or destroyed. Printing fewer paper bonds reduces the cost of the savings bond program and fits with our long-term goal of one day issuing all of our securities electronically. Technology makes it possible for us to sell and maintain savings bonds and other Treasury securities electronically, which lowers the expense to the taxpayer.
