Come 2012, paper savings bonds will be a thing of the past. YNN's Tara Lynn Wagner filed the following "Money Matters" report.

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The new year will usher in a new era for a very old investment tool. After more than 75 years, Series EE savings bonds will no longer be available for purchase in paper form. In a recent statement, Commissioner of the Public Debt Van Zeck explained:

"Savings bonds are very much a part of this country's history and culture, and will remain a part of America's future - but in electronic form. It's time for us to take a 1935 model and make it a 21st century investment tool."

"It's just a more efficient way to issue and administer the securities. It's going to save the government and ultimately taxpayers money," says Bankrate.com Senior Financial Analyst Greg McBride.

The change is expected to save the government an estimated $70 million over the first five years. But beyond that, McBride says individual bondholders won't notice much a difference.

"Everything is the same from the standpoint that it's still backed by the full faith and credit of the U.S. government. They do continue to earn interest for up to a 30-year period and they do convey the same tax advantages that they always have," explains McBride.

What is different is that previously, when you purchased a paper savings bond at a bank, you paid half the face value. For example, one would pay $25 for a $50 bond. It could then take up to 20 years to mature to its full amount.

Electronic EE bonds, on the other hand, are sold at face value, i.e. $50 equals a $50 bond and it's worth its full value as soon as it's available for redemption.

Lastly, there's simply the matter of convenience. Bondholders will no longer have to worry about forgetting where they stored the bonds, and no paper means no trip to the bank to buy or cash them in.

"You'll be buying them in electronic form and all your redemption can be done with the click of a mouse," says McBride.

If you have previously issued paper bonds, a program called SmartExchange will allow you to convert them to electronic bonds if you would like, although it's not mandatory.

For more information about how to purchase or convert Series EE savings bonds, visit www.treasurydirect.gov.