ALEXANDRIA, Va. – NCUA notified credit unions this morning of the U.S. Treasury’s termination of the sale of savings bonds through credit unions and banks at year-end.
“However, electronic savings bonds will remain available to customers for purchase through TreasuryDirect, a secure web-based system operated by the (Treasury's) Bureau of Public Debt,” NCUA said in a new letter to CUs.
Credit unions may still redeem savings bonds for their members, and reissue paper bonds not yet matured that have been lost, stolen or destroyed.
NCUA urged credit unions to educate their members that they will no longer be able to buy paper savings bonds at their credit union or by mail order and that the drop-dead date for selling savings bonds at their credit union is Dec. 31.
The Treasury Department is offering a free toolkit that includes fliers, messages for account statements, Web banners, frequently asked questions and articles for newsletters to help communicate the changes.
The elimination of paper savings bonds is projected to save the Treasury $120 million over the next five years in printing, mailing, storage and fees paid to credit unions and banks for processing bond applications.
