Modern technology can sometimes be the best advancements we have made (such as the internet) or the creation of nuclear bombs. If you are someone who is a bit shy of technology you can still have your choice of contemporary or old school when it comes to purchasing US Savings Bonds. These securities can be issued either as an Electronic or Paper Savings Bonds.
Savings Bonds were developed as a way for citizens to loan money to the US Government. Investor would convert their hard earned cash into a paper document that has a face dollar amount, serial numbers, and earns interest. These Paper Savings Bonds matured over a period of decades and then could be cashed in at financial institutions, such as banks when they mature. Although most transactions are done via the internet, Paper Savings Bonds still exist.
Not too long ago, the US government launched a website called TreasuryDirect where investors can purchase either new Electronic Bonds or convert their Paper Savings Bonds into the new system. The Electronic Bonds are the same as Paper Savings Bonds but with many added benefits and conveniences courtesy of the electronic age. Some key differences between Electronic and Paper Savings Bonds are:
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Really, there are no differences on the investment principles, rateof return or safety of the two bond types. However, the major difference between Electronic and Paper Savings Bonds is the convenience.
