RAO Davao City

United States Military Retiree Activities Office Davao City, Philippines

U.S. Savings Bond Update 15 Feb 2008

Posted by Service Officer on February 15th, 2008

Retirees can buy U.S. Savings Bonds in electronic form and hold them directly with the U.S. Treasury over the Internet. They can even convert their paper savings bonds into electronic form and hold them in an account with the government. Both are possible when people open a TreasuryDirect account, according to Defense Finance and Accounting Service officials.

TreasuryDirect allows people to open an online account and buy savings bonds either through a payroll allotment or with money debited directly from a bank or credit union account. Once the bonds are eligible for redemption, people can go online and schedule payment directly into a bank or credit union account.

Electronic savings bonds carry the same interest rates and maturity periods as paper bonds, but, unlike paper bonds, people do not have to wait to receive them in the mail. Instead, all people need is access to the Internet.

With a TreasuryDirect account, people can convert any paper bonds they own into electronic securities. If the DFAS is holding the bonds, people can request the bonds and DFAS will mail them. People can then send them, along with any paper bonds they may have at home, to the U.S. Treasury for addition to a TreasuryDirect account.

Because the U.S. Treasury requires people to submit the bonds with a signed manifest, DFAS cannot mail the bonds directly to the treasury. To learn more about converting bonds into electronic form, visit SmartExchange at http://www.treasurydirect.gov/indiv/research/indepth/smartexchangeinfo.htm. For more information, visit www.treasurydirect.gov. [Source: Afterburner Feb 08 ++]

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