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Treasury Reduces An Incentive For Banks To Redeem Paper Savings Bonds

Wednesday, February 22, 2012 - 5:54 PM
Banks and credit unions that redeem paper savings bonds for their customers will no longer be paid by the Treasury starting in April. According to the Credit Union Times, "Savings bond agents [like banks and credit unions] are currently paid 30 cents for each redeemed savings bond submitted". This will end in April. I found the Treasury's press release about this change. One of the FAQs in the press release answered the question "Why should financial institutions continue to redeem bonds?" The answer the Treasury gave was:
Redeeming savings bonds is a valuable service for your customers. There are currently more than 679 million paper bonds worth $180 billion dollars in the hands of the public. Customers who redeem bonds have cash in hand to direct to other products and services offered by their financial institutions

Hopefully, this will be enough of a reason for banks and credit unions to continue to offer this service. Otherwise, it may get harder to find banks and credit unions that offer this service.
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Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
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