The U.S. Department of Treasury phased out the issuance of paper savings bonds through traditional employer-sponsored payroll savings plans. As of September 30, 2010, federal employees are no longer able to purchase paper savings bonds through payroll deduction. The end date for all other (non-federal) employees is January 1, 2011.

Why is Treasury discontinuing the issuance of paper bonds through payroll savings plans?

With TreasuryDirect, Treasury can continue to offer employees the convenience of payroll savings while reducing the cost of the savings bond program. Employees have the benefit of regularly investing in savings bonds or using their payroll contributions to purchase a broader range of securities. Savings bonds in TreasuryDirect are electronic securities in an account; they have all of the benefits of paper bonds but can’t be misplaced or destroyed. Printing fewer paper bonds reduces the cost of the savings bond program and fits with our long-term goal of one day issuing all of our securities electronically. Technology makes it possible for us to sell and maintain savings bonds and other Treasury securities electronically, which lowers the expense to the taxpayer.

How does the change affect me?

To continue your payroll savings, you’ll need to open a TreasuryDirect account. You can continue purchasing savings bonds (or other Treasury securities) and hold them electronically in TreasuryDirect. You will not be able to purchase paper bonds through a payroll savings plan after the applicable end date.

What happens to the paper bonds I already own?

The bonds you own are valid issues of the U.S. Treasury. Treasury will continue to provide service and support to bond holders.

For More Information you can visit the following link:  ( Please note you will be leaving the Park State Bank & Trust Website)

http://www.treasurydirect.gov/news/news_elimination_paperpayrollqa.htm#changing

NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE
COVERAGE FOR TRANSACTION ACCOUNTS