Catalyst News

Know your Member: CUs Now Have Option to Say ‘No’ to Some Savings Bond Redemptions

by Catalyst Corporate | Jan 18, 2022

The U.S. Department of the Treasury has made a key change to its guidelines for cashing savings bonds at financial institutions. The change, a response to the recent uptick in savings bond fraud, gives financial institutions greater discretion in deciding whether to cash savings bonds for new members or non-members.  

Recent FRB Services correspondence on behalf of the Treasury stated: “We have created the option for financial institutions to not cash savings bonds for both non-customers or new customers. Our Secret Service partners recommend that a customer be established for 12 months before cashing bonds at a financial institution. Where prior guidance directed financial institutions to cash bonds in both situations, the updated guide leaves this choice up to the financial institution.”

Financial institutions are still required to cash savings bonds or notes that are eligible for payment for an established account holder who presents the proper identification and who seems worthy of trust. Payment is now optional, however, to a person who doesn’t hold an account or who only recently opened an account at your institution.

If credit unions choose not to cash a bond, the Guide states that you may refer the member to Treasury Retail Securities Services at FRB Minneapolis or forward the transaction to Minneapolis on behalf of the member.

For more information, view the updated guide here or visit for additional details on how to cash savings bonds.