Can You Convert Paper Savings Bonds to Electronic?

Years ago nearly all forms of documentation were completed by hand and stored away in files. With the advent of computer technology and systems that store data electronically, the world around us changed. Bonds were previously issued on paper as a sole document that contained the information to prove ownership. In the modern age, a more efficient and safer way to document ownership became digital documents and bonds that are now issued in digital form. There are still a lot of savings bonds out there that are issued on paper, and you can still purchase paper bonds, but the digital format appears to be the safest and more convenient way to go.

Can you convert paper savings bonds to electronic?

If you own paper savings bonds, you can convert them into an electronic format. According to Treasury Direct, the process is called making a SmartExchange. Savings bondholders may trade paper savings bonds that are held in TreasuryDirect for electronic savings bonds. The name of the process indicates that it's a recommended method for keeping savings bonds information more secure.

What are the benefits of digitalizing savings bonds?

Savings bonds that are held in a digital format through the US Treasury Department are recorded in a secure location that so far, has been kept safe from hackers. You may access the online system for access to your treasury securities 24 hours a day and 7 days a week. All of the vital information that you need is stored in your online account. There is no longer a threat of losing the paper bonds through damage, theft, or other loss.

How do you make the SmartExchange?

Converting your paper savings bonds into electronic is a five-step process, but it's not difficult to complete. The first step is to open a personal account with TreasuryDirect. Use the online application to set up your account. After you've set up your TreasuryDirect account, log in to your account. You will find an area that says "ManageDirectSM." There is a link under this heading that says "Establish a Conversion Linked Account under the "Manage My Linked Accounts" menu. Click on the link to arrive at a page that gives you information and a button to click. Click on the button and create a Conversion Linked Account. An information page will be displayed containing facts about your account. There will be a "ManageDirect" tab. Click on the tab to bring up the page where you will find a menu titled "Manage My Conversions." Within this menu, you'll find a link that is titled "How to Convert my paper bonds." Click on the link for step-by-step instructions to convert your paper savings bonds to electronic. You should have the paper bonds on hand in case you need to retrieve information from them to complete the conversion process.

Can you still buy paper savings bonds?

Although some firms issue paper bonds, the US Treasury Department made the decision not to print their bonds in a paper format, according to Wikihow. All US Treasury backed securities now come in the form of e-Bonds. These are all presented in a digital format. Investors are provided with the relevant information through their online accounts in digital form.

Important information about converting paper bonds to electronic

You will need to have your paper bonds on hand when you complete the conversion process. You will need to provide the series type, either E, EE, or I, the serial numbers, the issue dates, and the face value amounts. When you convert them to digital form, you are not redeeming the bonds, so do not sign the back of them. When it is time to cash in the bonds, you may do so digitally. You will not be required to sign them.

Near the end of the completion of your conversion, you will create a manifest. This document is a component of the paperwork that is required to complete the conversion of paper bonds to ebonds. You will need to print out the documents, complete them, and send it to TreasuryDirect at the address that is provided. A signature page is provided in the documentation. This is the only document that you will need to sign. Again, do not sign the bonds. You must include the paper bonds along with the paperwork that you printed out to the US Treasury Dept, but they must be unsigned. When you're ready to redeem your saving bonds, you may log into your account with TreasuryDirect. Instructions are provided to redeem the bonds and have the funds sent to your bank account.

Final thoughts

Converting paper bonds into electronic is something you may want to consider. Electronic storage and tracking of your investments is a more secure way to keep them. It's possible to have paper bonds stolen, lost, or damaged. It's a hassle to have them replaced. Converting them to an electronic platform is a simple process that just takes a few minutes, a printout, and a stamp to mail in the necessary paperwork. Once you have completed the process, you won't need to worry about keeping track of your paper bonds. Paper bonds are quickly becoming a thing of the past. In a digital age where most vital documents are stored electronically, with all associated information in one safe place, it makes sense to take the steps necessary to keep your investment safe. If you don't have a TreasuryDirect account, it's easy to set up and you will find step by step instructions about how to set up an account, then how to convert paper bonds into electronic. Once your account is established, you can even opt for special features that are offered by the US treasury. You may redeem your bonds for cash or you can opt to purchase more bonds with the proceeds, and it can all be done easily online.