Farewell Paper I-Bonds: Savings Bonds Are Going Online Only

closeup of Series I government savings bonds — (Image credit: Getty Images)

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.

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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.

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.

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