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How To Buy Paper Savings Bonds After 2011

Sunday, July 17, 2011 - 9:26 AM
As I reported in this July 13th post on the end of paper savings bonds, you will no longer be able to buy savings bonds from banks and credit unions after 2011. The Bogleheads member Angst posted an email he received from the Treasury stating that the TreasuryDirect savings bond purchase limit will remain the same. Thus, this change effectively cuts the annual I Bond purchase limit for one SSN from $10K to $5K.

HOWEVER, you will still be able to buy paper savings bonds with your IRS income tax refund. The Finance Buff blog post has a good description of a method to allow you to easily buy paper savings bonds with your tax refunds.
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
1. Sunday, July 17, 2011 - 9:43 AM
I'm not sure how u would figure it out accurately, but any refund in taxes means u loaned the US that money... for ZERO % interest. If u take that money and by a bond with it, the actual rate of return on that money would be less, if u count the time it was loaned to the govt at ZERO % interest. On the other hand, if u were to have slightly less taxes taken out than u will owe, U got to borrow the money at ZERO % interest and use it throughout the year. NOTE: be careful, because over a certain amount owed can lead to a fine. Maybe a tax expert could provide more info regarding this issue.
MikeMike327 posts since
Feb 22, 2010
Rep Points: 876