The Treasury Department is searching for a bank to support the government's new retirement savings bond program.
Lenders interested in becoming a financial agent for the program must submit applications by March 31, according to the Treasury's Thursday press release. The Treasury plans to select just one financial agent to open and maintain the Treasury-branded Roth IRAs, or myRAs, and to provide related administrative, custodial recordkeeping, accounting and back office services.
The myRA program aims to provide Americans with a low-risk, affordable way to build a nest egg by investing in no-fee savings bonds backed by the government. President Obama announced the proposed program in his State of the Union address in January.
Together with the Treasury's Bureau of the Fiscal Service, the designated financial agent will work with employers and industries to enroll workers in the myRA program, according to the release. The Treasury plans to initially offer the program only to workers eligible for payroll deduction, although it may allow workers to fund their accounts through other means in the future.
Employees will make a minimum initial investment of $25, with minimum contributions of $5 thereafter. The retirement savings bond will stop earning interest after 30 years or when the account balance reaches $15,000, at which point the account will be closed, according to the release.