Savings bonds to go paperless

It's the end of an era. As of Monday, it will no longer be possible to walk into a bank or credit union and buy a U.S. savings bond in paper form. Savings bonds will only be available for purchase online.

The paperless shift is designed to save the U.S. Treasury an estimated $120 million over the next five years.

It ends a 76-year-old tradition of paper savings bonds, which made their first appearance in 1935 under President Franklin D. Roosevelt. But going electronic-only doesn't change the basics of buying or redeeming savings bonds, says the Treasury.

At Teachers Federal Credit Union headquarters in Farmingville, Mark Eberharth, senior vice president of operations, said not many people buy the paper bonds nowadays -- probably a few dozen a month at his 23 branches. "It's really a gift transaction," he said. Still, "there's been some sadness" among customers about the pending change.

Joe Perri, president and chief executive of Islandia-based Gold Coast Bank, sees value in something tangible like a bond or a savings book to introduce young people to the practice of saving money. "It's nice to have the younger generation look at these bonds and hold them," he said.

Existing paper bonds can still be redeemed and will continue to earn interest for up to 30 years from date of issue.

With Tom Incantalupo