End of Over-the-Counter Sales of Paper U.S. Savings Bonds

On the following slides Overview of the end of over-the-counter sales of paper

U.S. Savings Bonds How to help customers make the transition to digital

bonds

What changed?

The U.S. Department of the Treasury ended over-the-counter sales of paper savings bonds at financial institutions

Savings bonds are not going away Digital savings bonds can still be

purchased online at www.treasurydirect.gov

Why did the Treasury Department make this

change? Ending sales of paper savings bonds will save

taxpayers $70 million over the next five years

Digital savings bonds eliminate the possibility of bonds being lost, stolen or destroyed

With TreasuryDirect, you can manage your savings securely online, anytime

Increased preference for electronic options – 2010 J.D. Power’s survey indicates 51% of bank customers

prefer online banking

Financial institutions and savings bonds

Financial institutions have been instrumental in savings bond sales:

It has been a tradition to purchase paper savings bonds at financial institutions

For many years, employees at financial institutions have been viewed as a trusted source for information on savings bonds and other Treasury securities

New applications no longer accepted The Federal Reserve Bank of Minneapolis no longer

accepts applications for paper savings bonds

The final December paper savings bond orders had to be to the FRB by January 9, 2012

Applications received after Jan. 9 Applications that were not received on time have

been rejected and returned

It is your responsibility to return the funds to the customer

Normally, the Treasury Department would simply assess a penalty and process the late applications – that is not an option as the paper program has ended

Processing reissue requests FRB Minneapolis will no longer contact you to resolve

application errors because new applications are not being accepted

We will continue to process reissue requests to correct errors with bonds ordered in prior months (i.e., wrong name or SSN#)

Financial institution checklist

Do not accept applications for paper savings bonds – paper savings bonds are no longer available

Continue to redeem existing paper savings bonds as a service for customers

Helping customers with digital savings bonds

Your customers may have questions for your staff about the change to how savings bonds are sold

So…

Inform customers about the change and direct customers to the Treasury Department’s TreasuryDirect site at www.treasurydirect.gov

Facts about TreasuryDirectTreasuryDirect is a secure, online system that allows users to set up an account to safely and securely:

Buy, manage and redeem digital savings bonds

Convert paper savings bonds to digital

Purchase other Treasury securities, including bills, notes, bonds and TIPS (Treasury Inflation-Protected Securities)

Facts about TreasuryDirect

A safe and convenient alternative for your customers:

Takes about 10 minutes to sign up

Free of charge to open and maintain an online account

Proven track record for safety and security

Visit www.treasurydirect.gov to download:

An FAQ to help your employees answer customer questions about the change to how savings bonds are sold and about TreasuryDirect

An article for employee newsletters or your Intranet, explaining what employees can do to help customers with the transition

What tools are available?

What tools are available?To help with your customer communications, visit www.treasurydirect.gov to download:

Customer fliers noting the change and providing information about TreasuryDirect

Handouts explaining how customers can open a TreasuryDirect account or buy a savings bond as a gift

Short messages you can include with account statements, reminding customers of the change

Sample social media messages reminding customers of the change

Web banners for your website

What can you do? Educate your tellers and other front-line staff:

– Include updates on intranet/employee newsletter– Distribute employee FAQ

Let customers know of the change:

– Use web banners and statement messages– Distribute fliers to customers inquiring about savings

bonds Let customers know about TreasuryDirect

– Provide information on how to access TreasuryDirect– Ideally, please go the extra mile for customers and help

them learn how to sign up for a TreasuryDirect account