End of payroll deductions for paper U.S. Savings Bonds approaching

Deadlines are drawing near for feds and military servicemembers who now buy paper U.S. Savings Bonds through payroll deductions to transition to the new, all-electronic system.

The Treasury Department announced in April that it would end the payroll deduction savings program for paper bonds. The paper bonds will continue to be available through financial institutions.

Current participants in the paper bond program should first contact their payroll officer to get copies of the necessary paperwork to handle the transition. Participants then can continue to purchase savings bonds — as well as other Treasury securities — by creating an account on TreasuryDirect.gov, and arranging for regular payroll contributions via direct deposit.

Military service members and retirees have until July 31 to arrange the changeover. Civilians paid by the Defense Finance and Accounting Service have until Aug. 31. All other government employees are required to complete the transition by Sept. 30. The program will cease in the private sector at the end of the year.

A complete question-and-answer page on the transition is available on the TreasuryDirect Web site.