No longer can cash Savings bonds in bank branches?

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Faith20879
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No longer can cash Savings bonds in bank branches?

Post by Faith20879 » Mon Feb 04, 2019 10:29 am

Has anyone cashed a Savings Bond at a local bank branch lately?

We bank at CapitalOne Bank and have cashed some bonds there before. Friday we tried to cash one and was told by the clerk that "Treasury has changed its policy and now requires the paper bonds be sent directly to them and can no longer be cashed at any bank." I made the clerk repeat it one more time to make sure that she meant Treasury has changed policy and not CapitalOne.

This was news to me. Before I bring the question to Treasury or verify it with another bank... has anyone heard of this too?

Thank you!
Last edited by Faith20879 on Mon Feb 04, 2019 10:45 am, edited 1 time in total.

smallpotato
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Re: No longer can cash Savings bonds in bank branches?

Post by smallpotato » Mon Feb 04, 2019 10:34 am

Yep. Saturday.

Oops, you ask two questions - Yes, I cashed EE bonds at a bank branch Saturday.

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Faith20879
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Re: No longer can cash Savings bonds in bank branches?

Post by Faith20879 » Mon Feb 04, 2019 10:43 am

smallpotato wrote:
Mon Feb 04, 2019 10:34 am
Yep. Saturday.
Thanks for confirming that. So... cashing in bank is still allowed. Hmm I am wondering if I have been lied to.

cas
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Re: No longer can cash Savings bonds in bank branches?

Post by cas » Mon Feb 04, 2019 11:09 am

Faith20879 wrote:
Mon Feb 04, 2019 10:29 am

We bank at CapitalOne Bank and have cashed some bonds there before. Friday we tried to cash one and was told by the clerk that "Treasury has changed its policy and now requires the paper bonds be sent directly to them and can no longer be cashed at any bank." I made the clerk repeat it one more time to make sure that she meant Treasury has changed policy and not CapitalOne.

This was news to me.
Apparently this would be news to treasurydirect.com as well:
You can cash paper EE and E bonds at most local financial institutions. This is the easiest way to cash bonds and the quickest way to get access to your money.
https://www.treasurydirect.gov/indiv/re ... redeem.htm

and (the Guide referred to on the first page)

https://www.treasurydirect.gov/indiv/re ... redeem.htm

That said, I don't think any particular financial institution is required to cash in EE savings bonds. I've seen people write on the Boglehead's forum about that before. (Although it could also be an uncooperative (young?) cashier who has never seen a paper EE savings bonds and just didn't know what to do. The manager might or might not have a different opinion.)

(My parents, who have been cashing in EE bonds in recent years, although not in the last year, have not had any problems with their local (small) bank (where they have an account) cashing their bonds, although "cashing" = put in checking account. I think there is a restriction on getting actual cash.)

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alpenglow
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Re: No longer can cash Savings bonds in bank branches?

Post by alpenglow » Mon Feb 04, 2019 11:34 am

My Mom has been cashing one a month at Chase for years now. No problems.

wm631
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Re: No longer can cash Savings bonds in bank branches?

Post by wm631 » Mon Feb 04, 2019 11:53 am

This would be eye-opening, and media news to a lot of us. But, fortunately not true (young, inexperienced tellers again, who don't have U.S. Savings Bonds - sigh). That said: (1) not all banks cash them - call ahead (2) most still will - but only if you have an account. Start with the official government site, first, for more information: "Treasury Direct". Another excellent site for questions and answers - now, discontinued since 2015 but still on-line - is "U.S. Savings Bond Advisor.com"

I last cashed at my local TD branch - December, 2018.
Last edited by wm631 on Mon Feb 04, 2019 12:14 pm, edited 1 time in total.

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Watty
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Re: No longer can cash Savings bonds in bank branches?

Post by Watty » Mon Feb 04, 2019 11:57 am

It was a while back but I had a clerk at a bank branch in a grocery store tell me that I had to go to main branch to cash one.

The person at the main branch said that was not true. They also got the details of where I was told that I suspect that person got into trouble.

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CABob
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Re: No longer can cash Savings bonds in bank branches?

Post by CABob » Mon Feb 04, 2019 12:02 pm

I cashed some about a year ago at my local bank. They had to take the information, fill out some form, and send it along with the bonds to their central office. The deposit to my account occurred a few days later.
I get the impression that they would prefer not to provide this service so I may look into redeeming through Treasury Direct.

Edit: I just took a look at the Form 1522 that Treasury Direct indicates is needed to cash bonds and it looks like the form that was filled out at my bank when I cashed some previously. the form requires a Certifying approval of ones signature which sounds like a pain to get. Sort of of like a Medallion signature.
Last edited by CABob on Mon Feb 04, 2019 12:22 pm, edited 1 time in total.
Bob

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Re: No longer can cash Savings bonds in bank branches?

Post by bearcub » Mon Feb 04, 2019 12:06 pm

Yep. I give them to my teller in my local bank all the time. She puts it right into my savings account. I just leave her a filled out deposit slip with the bonds + she does the rest.

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Faith20879
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Re: No longer can cash Savings bonds in bank branches?

Post by Faith20879 » Mon Feb 04, 2019 12:21 pm

I always knew that not all banks cash them. Banks do it as a service to the customers. I know CaptialOne used to. But when the clerk said it is a Treasury policy then that's different.

Thanks for your input!

AlwaysaQ
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Re: No longer can cash Savings bonds in bank branches?

Post by AlwaysaQ » Mon Feb 04, 2019 1:47 pm

Last year one bank I asked about cashing paper I bonds gave me an answer that they did but only up to a limit of $5000. If I wanted to cash more I should let them know in advance.

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HueyLD
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Re: No longer can cash Savings bonds in bank branches?

Post by HueyLD » Mon Feb 04, 2019 2:03 pm

I ran into similar problems four years ago and could not do anything with large denomination I bonds.

So, I converted all my paper to plastic and redemption is now just a click away.

I understand that a lot of people don't like having to deal with TD, myself included. But the alternative is worse.

Again, this issue is very much location specific. Based on many prior threads, I think one will have better luck with local credit unions at some locations.

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BL
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Re: No longer can cash Savings bonds in bank branches?

Post by BL » Mon Feb 04, 2019 2:35 pm

Yes, did it on Dec 31,2018 at a small local bank with no problem. They sold them to us in 2011, I think.

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Watty
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Re: No longer can cash Savings bonds in bank branches?

Post by Watty » Mon Feb 04, 2019 2:47 pm

AlwaysaQ wrote:
Mon Feb 04, 2019 1:47 pm
Last year one bank I asked about cashing paper I bonds gave me an answer that they did but only up to a limit of $5000. If I wanted to cash more I should let them know in advance.
That may be if you wanted the money in cash, and were not going to deposit it into your account.

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nisiprius
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Re: No longer can cash Savings bonds in bank branches?

Post by nisiprius » Mon Feb 04, 2019 2:52 pm

Faith20879 wrote:
Mon Feb 04, 2019 10:29 am
...Friday we tried to cash one and was told by the clerk that "Treasury has changed its policy and now requires the paper bonds be sent directly to them and can no longer be cashed at any bank." ...
No, they were lying.

This came up just a few months ago in a local Facebook group for my home town and--just as I thought--the small bank that used to cash them still does. That was according to an assistant bank manager who posted in the Facebook group. Actually, to be precise, she said that they only cash them up to a maximum total of $1,000 for non-customers, but without limit for customers.

Let me be careful here. I think your bank was lying. Since I don't have any paper bonds I want to cash, I am not going to pester the local bank right now by asking whether they've stopped accepting savings bonds within the last couple of months because of a change in Treasury policy.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

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Re: No longer can cash Savings bonds in bank branches?

Post by Rupert » Mon Feb 04, 2019 3:15 pm

nisiprius wrote:
Mon Feb 04, 2019 2:52 pm
Faith20879 wrote:
Mon Feb 04, 2019 10:29 am
...Friday we tried to cash one and was told by the clerk that "Treasury has changed its policy and now requires the paper bonds be sent directly to them and can no longer be cashed at any bank." ...
No, they were lying.

This came up just a few months ago in a local Facebook group for my home town and--just as I thought--the small bank that used to cash them still does. That was according to an assistant bank manager who posted in the Facebook group. Actually, to be precise, she said that they only cash them up to a maximum total of $1,000 for non-customers, but without limit for customers.

Let me be careful here. I think your bank was lying. Since I don't have any paper bonds I want to cash, I am not going to pester the local bank right now by asking whether they've stopped accepting savings bonds within the last couple of months because of a change in Treasury policy.
It was probably just ignorance on the part of the teller. Banks no longer sell savings bonds but did up until 2012. Maybe that's where she got confused. That is a Treasury policy.

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Re: No longer can cash Savings bonds in bank branches?

Post by EyeYield » Mon Feb 04, 2019 3:25 pm

One reason I’m leaving Bank of America is that they changed their policy and now will only redeem 7 EE Bonds at a time, which means unnecessarily waiting in line several times a year.

Chase will redeem as many as I want. Chase told me there are only 20 spaces for bonds per screen, but that opening multiple screens is not a problem.

I don’t know for sure, but I suspect that the restrictions we’re seeing at some banks is due to increasing fraud with paper bonds in some locations.
"The stock market is a giant distraction from the business of investing." - Jack Bogle

badger42
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Re: No longer can cash Savings bonds in bank branches?

Post by badger42 » Mon Feb 04, 2019 3:31 pm

I suspect you're hitting a generation gap here.

Generation X: What's a savings bond?
Millennials: What's a bank branch?

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laughlinlvr
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Re: No longer can cash Savings bonds in bank branches?

Post by laughlinlvr » Mon Feb 04, 2019 5:31 pm

No problem cashing in series EE bonds at Wells Fargo on Monday afternoon.
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Faith20879
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Re: No longer can cash Savings bonds in bank branches?

Post by Faith20879 » Wed Feb 06, 2019 11:23 am

This...
nisiprius wrote:
Mon Feb 04, 2019 2:52 pm
Faith20879 wrote:
Mon Feb 04, 2019 10:29 am
...Friday we tried to cash one and was told by the clerk that "Treasury has changed its policy and now requires the paper bonds be sent directly to them and can no longer be cashed at any bank." ...
No, they were lying.

This came up just a few months ago in a local Facebook group for my home town and--just as I thought--the small bank that used to cash them still does. That was according to an assistant bank manager who posted in the Facebook group. Actually, to be precise, she said that they only cash them up to a maximum total of $1,000 for non-customers, but without limit for customers.

Let me be careful here. I think your bank was lying. Since I don't have any paper bonds I want to cash, I am not going to pester the local bank right now by asking whether they've stopped accepting savings bonds within the last couple of months because of a change in Treasury policy.
An update...

We found a PNC that was willing to redeem the bonds, very thankful.

To satisfy my curiosity, I called the CaptialOne Bank's national customer service line and got hold of a "Customer Service Specialist". The Specialist cited the exactly same statement "Treasury has changed its policy and now requires the paper bonds be sent directly to them and can no longer be cashed at any bank." I am thinking there must be a script that she was reading from.

I asked if that was true, why could PNC still redeem them. She then read the statement again. At this point I knew it was time to drop it.

Thank you for taking the time. We got our bonds redeemed and happily moved on.

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nisiprius
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Re: No longer can cash Savings bonds in bank branches?

Post by nisiprius » Wed Feb 06, 2019 11:34 am

Faith20879 wrote:
Wed Feb 06, 2019 11:23 am
...To satisfy my curiosity, I called the CaptialOne Bank's national customer service line and got hold of a "Customer Service Specialist". The Specialist cited the exactly same statement "Treasury has changed its policy and now requires the paper bonds be sent directly to them and can no longer be cashed at any bank." I am thinking there must be a script that she was reading from...
Oh, now that is bad and infuriating.

It is common enough for customer service representatives to make casual fibs rather than acknowledge they don't know. It is common enough (but lying, in my opinion) to say "the government requires us to charge this nuisance fee" when the truth is "the government now allows us to charge this nuisance fee." Or, "we don't do it any more because a change in government policy no longer makes it profitable for us to do it." Or "all banks do this" when the truth is "I think I've heard that our biggest competitors are doing it now, too."

But "Treasury has changed its policy and now requires the paper bonds be sent directly to them and can no longer be cashed at any bank?" As official language from a script reps are supposed to use? I think that's an outright lie, and if comes from the top and not from a rep's casual improvisation, shaem on them.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

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Re: No longer can cash Savings bonds in bank branches?

Post by mptfan » Wed Feb 06, 2019 11:47 am

nisiprius wrote:
Wed Feb 06, 2019 11:34 am
But "Treasury has changed its policy and now requires the paper bonds be sent directly to them and can no longer be cashed at any bank?" As official language from a script reps are supposed to use? I think that's an outright lie, and if comes from the top and not from a rep's casual improvisation, shaem on them.
I have come across this issue a number of times...a financial institution or corporation does not want to do something so they claim that some government regulation prevents them from doing it. In most cases it is just made up and it's just shameful. I think sometimes the front line customer service person actually believes it because that's what they were told.

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