Spring Lake, New Jersey (PRWEB) June 27, 2012
Effective January 1, 2012, Americans are no longer able to purchase US savings bonds at their local banks or financial institutions. The web site, http://www.BringBackPaperSavingsBonds.com, created by SavingsBonds.com, encourages all Americans to sign a petition that will be forwarded onto government officials and the President of the United States, requesting the decision to eliminate the paper bonds be reversed, once 100,000 signatures are reached. SavingsBonds.com hopes the patriotic Fourth of July holiday will encourage Americans to tap into their patriotism and sign the petition to bring back the option to purchase paper bonds. SavingsBonds.com encourages those who sign the petition to spread the word about the elimination of the paper bonds to family, friends, neighbors and co-workers. You do not have to be a savings bond owner to sign the petition.
Since January, 2012, SavingsBonds.com has received a lot of negative feedback as a result of the U.S. Treasury's cost savings decision to eliminate the paper bonds. According to the U.S. Treasury Department, by eliminating the paper bonds, Americans will save $70 million over the next five years. According to Marc Prosser, Founder of LearnBonds.com and co-sponsor of the petition, "This relatively meager savings by government standards does not come close to the loss of numerous benefits to approximately 50 million Americans who currently hold paper bonds." Prosser continues, "They (bonds) play an important role in teaching young people about saving money, earning interest and American patriotism."
According to Public Debt Commissioner Van Zeck, "It's time for us to take a 1935 model and make it a 21st century investment tool." However, in 2011 nearly 87% of US savings bonds purchased were in paper format. Only 13% were purchased electronically. Electronic bonds have been available for years.
Many feel the decision to eliminate the paper bond is also stripping away a part of an American tradition. Paper bonds are viewed as something that is financially attainable, and easy to purchase for most people. Traditionally, savings bonds have met the needs of lower and middle-class Americans as a way to save. Many also purchased savings bonds as gifts for children and grandchildren.
The decision to eliminate the paper bond option may turn out to be a financial disaster for Uncle Sam. "The government has made it financially invasive to purchase bonds, and much less convenient," according to SavingsBonds.com Marketing Director Jackie Brahney. She adds, "The government's decision may turn out to be a typical case of being penny wise and pound foolish regarding the elimination of the paper bond." The government is not factoring in that they currently save an estimated $300 million per year in interest payments due to paper savings bonds. These interest payment savings will likely disappear over the years by offering only the electronic bond. Many predict the government will see an overall reduction in sales of US savings bonds over the years by only offering the electronic bond. Only time will tell if the cost savings attempt by the Treasury Department was a smart idea.
Go to http://www.BringBackPaperSavingsBonds.com to learn more about the elimination of the paper savings bond and sign the petition.
About The Savings Bond VIP Club:
SavingsBonds.com VIP Club Members have 24/7 access to current bond values, interest rates, timing, taxation and maturity issues displayed on an easy to understand, color-coded, bond-by-bond, personal Bond Inventory Report. Members also receive monthly emailed summary statements with up to date values, interest earnings, along with emailed alerts and strategies about current and upcoming financial events, including maturity and taxation issues. Optional, periodic informative Bond Tips are included along with discounts on lost bond and re-issue services. This pro-active, investor friendly approach helps bond owners avoid possible forfeiture of interest, double taxation and IRS situations, and helps investors maximize their savings bond investment.
SavingsBonds.com offers a free savings bond calculator with a complimentary, personalized, color-coded, printed Bond Inventory Report, an extensive savings bond information center. The site also provides current series EE and I bond rates, lost bond services and re-issue services, as well as links to purchase savings bonds online and popular government forms.