The federal government's TreasuryDirect.gov website is the only place online where you can buy and redeem U.S. savings bonds. You can also use TreasuryDirect to purchase securities such as Treasury bills, notes and bonds, as well as Treasury inflation-protected securities (TIPS).
Recently, TreasuryDirect introduced changes to how its users access their online accounts. Last year, it discontinued a tool for tracking down unredeemed bonds. And those who request certain services may face a months-long wait for the Treasury to complete the task.
Here's what you should know.
A new way to log in.
As of late October, TreasuryDirect is requiring customers to log in to their accounts with ID.me, a digital identity-verification service. You may already have an ID.me account to log in to other government or business websites; taxpayers use it to access records with the IRS, for example. Those who have an ID.me account may need to take some additional identity-verification steps before using it to access TreasuryDirect.
If you need to create an ID.me account, you'll provide information including your Social Security number and a photo of government-issued identification, such as your driver's license or passport. You may also have to submit a photo of yourself taken with your smartphone's camera.
Tracking down unclaimed bonds.
Last year, TreasuryDirect discontinued its online Treasury Hunt tool, which customers could use to search for missing or unredeemed savings bonds. The service ended because a provision in the SECURE 2.0 Act called for the Treasury to share information on some unredeemed, matured bonds with the states, which can include them in their unclaimed-property databases. But the program is still in the works, and you can't yet count on using these databases to find bonds.
If any of your bonds have been lost, stolen or destroyed, you can fill out and mail FS Form 1048 to request a claim. Provide any details about the bonds that you have on hand, including the purchaser's Social Security number as well as bond serial numbers and issue dates.
Significant delays.
Prepare for a long wait if you submit a form by mail. Requests for lost, stolen or missing savings bonds take 11 months or more to process, according to the TreasuryDirect website. Converting paper savings bonds to an electronic format may take nine months or longer, and cashing in paper bonds could take at least three to five months. A high volume of requests is causing the delays, according to the Treasury.
If you're planning to cash in paper bonds, send the request (using FS Form 1522) several months before you need the money, suggests David Enna, founder of Tipswatch.com. If the total redemption value of the bonds is more than $1,000, you'll have to sign the form in the presence of a notary or another certifying officer. Send the request via certified mail to the address listed on the form, with a return receipt requested, Enna advises.
Alternatively, you may be able to cash in paper savings bonds at a local bank or credit union. But many limit the service to customers who have an account with the institution.
If you're counting on savings bonds to cover a major expense, timing matters. A financial adviser can help you evaluate your options, plan for potential delays and determine how your savings bonds fit into your broader financial strategy.
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Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.