You Can No Longer Buy Paper Inflation Bonds With Your Tax Refund
Published On Jan 31, 2025, 9:00 AM
The U.S. Treasury Department has discontinued the option of purchasing paper I bonds through tax refunds, effective January 1, 2025. This program, which allowed taxpayers to buy up to $5,000 in extra I bonds using their tax refunds, was aimed at helping low and moderate-income individuals save. With this change, all savings bonds will now need to be purchased digitally through the TreasuryDirect platform. The decision comes as the program was underused, with only about 35,000 tax filers participating each year and concerns over fraud and inefficiency with mailing paper bonds.
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The elimination of the tax-time savings bond program may lead to a reduction in immediate demand for I bonds, as this option was a preferred method for some taxpayers. However, given that all purchases will now be digital, this may streamline the process and could eventually support growth in digital bond purchases. Overall, it appears that the bond market may stabilize as transition occurs.
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