Savings Bonds: 4 Reasons to Prefer Electronic over Paper

If you are considering purchasing savings bonds, you will have to decide whether you want to purchase electronic or paper bonds. Here are a few reasons to prefer electronic over paper savings bonds.

1. Destruction

If you have electronic savings bonds, they are not going to be able to be destroyed, as paper bonds can. A paper bond could be destroyed in a house fire, flood or other type of disaster. 

2. Tracking

You can easily track an electronic bond and make investment changes online. With a paper bond, of course, you have to keep track of a piece of paper, which can be difficult.

3. Variable Purchase Amounts

With a paper bond, you have to make purchases in fixed amounts. When you purchase an electronic bond, you can make a purchase in any amount between $25 and $30,000. This gives you more flexibility when it comes to investing your money in bonds.

4. Partial Redemptions

If you want to partially redeem your investment, this is possible with savings bonds. If you have paper savings bonds, this process is going to be much more complicated. With an electronic bond, you will more easily be able to make a partial redemption.

blog comments powered by Disqus
Scottrade