As of December 31, 2011, the U.S. Department of Treasury will eliminate over-the-counter sales of paper savings bonds. After December 31, paper bonds will no longer be sold at credit unions and all other financial institutions. Electronic savings bonds will continue to be available for purchase by consumers through TreasuryDirect, a secure web based system.
NCUA issued a letter to Federally insured credit unions in September 2011 with guidance to assist the credit union and members through the transition. The letter discusses educating members about the upcoming changes, directives to cease acceptance of applications for savings bonds after December 31, 2011, and how to continue redeeming savings bonds. Click here to view the NCUA letter.
To assist credit unions in this transition, the Treasury Department is offering a free toolkit to help communicate this change to your members. The toolkit is available for download at www.treasurydirect.gov. The link provides the following tools:
• Fliers for members
• Messages for account statements
• Web banners
• Frequently Asked Questions for employees
• Article for employee newsletter or Intranet
The NCUA estimates ending the sale of paper bonds will save approximately $120 million over the next five years in printing, mailing, storing bond stock, and fees paid to financial institutions for processing bond applications.