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AUTHOR: R Quinn on 10/26/2024
I just made my annual trip to the bank to cash matured US savings bonds I purchased through payroll deduction thirty years ago.
In the olden days it was simple – fill out a form at work and when you accumulated the purchase price for the bond value you designated, you received a bond in the mail. Because of the way pay periods worked, I received 13 a year.
When I mentioned to the young teller I had accumulated the bonds through payroll deductions she didn’t understand, I briefly explained it and she said, “that sounds like a good idea.” Yeah it was. In fact, the process was supported by many employers. We were encouraged to buy bonds as a patriotic act. I once received a tie with eagles on it as a reward for being a local savings bond campaign committee chair person.
I don’t expect savings bonds are a top investment for most in the HD community. EE bonds currently pay 2.7% although mine are so old they pay 3.6% and some in the 6% range.
Apparently the simplicity of payroll deductions is no longer possible. According to Treasury Direct you have to hope your employer does direct deposit – and then:
“The amounts you have direct deposited from your pay are used to buy a Payroll Certificate of Indebtedness (C of I) which is a non-interest-bearing security that is used as the source of funds for your savings bond purchases.
Amounts you keep in your Payroll C of I earn no interest and remain there until used. The Payroll C of I can be redeemed at any time. The funds are usually deposited to your bank account within two business days. That’s all there is to it.”
That’s ALL there is too it?
Sounds like backward progress to me and certainly not user friendly.
I’m lucky, my bank – Chase – will cash my bonds given I’m a customer. However, today I was informed they will only cash a bond if the face value plus interest does not exceed $200. On the other hand, a 2023 New York Times article said Chase had imposed a $500 limit. I called the Chase customer service number and they couldn’t clarify, but told me to go to a branch. I asked if each branch had their own policy and I was told “ I have no information on that.” I called my branch but was transferred to another central customer service agent who thought there was a limit and thought it was $500, but had no information to verify. Visit a branch I was told.
If you can’t cash a bond at a bank, you need to have a Treasury Direct Account and follow their mail in process to cash bonds which is more paperwork and possibly having to have your signature certified.
Will my bonds reach the Treasury? I hope someone has a record of the bonds I own, I sure don’t. Ah, this is the time to photocopy them all.
I’m all for online transactions, leveraging technology and all that, but if you have a Treasury Direct account you better make sure your survivors know where and how to access it.
And I thought I was being patriotic. My patriotism is being tested by two bureaucracies.
QUINNSCOMMENTARY 
I was enrolled in the Payroll Savings Plan when I was in the navy. I had a pretty nice stack of savings bonds after 5+ years on active duty. I was already investing in mutual funds and figured I could do better than the savings bonds – so I decided to cash them in.
I went down to the Federal Reserve Bank in Philadelphia to cash them in. After all, they were issued by the Federal Reserve Bank. When I went up to the window they looked at my like I was crazy and told me I had to go to my local bank to cash them. I thought it would be easier to go right to the source – silly me!
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I remember buying saving stamps for 25 cents each in grade school in the 60’s. They were pasted in a book until you reached $18.75 at which point you could redeem that at any bank for a $25 bond.
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