The Bond Teller, November 1999, by seanporterr

VIEWS: 20 PAGES: 6

									     the
Volume 28                              No. 2 November, 1999 • D e p a r t m e n t o f t h e T r e a s u r y • B u r e a u o f t h e P u b l i c D e b t


TELL YOUR CUSTOMERS                                          security protocol used on the Internet
                                                                                                                           Y2K UPDATE
ABOUT THE SAVINGS                                            today. It protects customer


                                                                                                                           A
                                                             information by encrypting it.                                        s January 1, 2000 draws near,
BOND CONNECTION                                                                                                                   you’re probably getting more
                                                             The SET protocol takes it one step                                   questions from customers who


T
      he Bureau of the Public Debt                           further by authenticating all parties                         want to know if their investment in
      now has a convenient new way                           in the transaction. Customers know                            savings bonds is safe.
      for people to buy savings bonds                        they’re sending information to Public
                                                             Debt for a purchase, they know the                            We began our Year 2000 review over
24 hours a day, 7 days a week—it’s
                                                             payment is going to an authorized                             four years ago, and have methodically
called “The Savings Bond Connection.”
                                                             location, and Public Debt knows the                           identified, tested, and verified
Customers can buy Series EE Bonds                            customers’ identities.                                        computer systems in the Bureau of the
or I Bonds over the Internet using                                                                                         Public Debt.
their credit cards from Public Debt’s                        If your customers are looking for a
                                                             way to buy savings bonds online and                           While we continue to review our
website, www.savingsbonds.gov.
                                                             you don’t offer bonds through Internet                        systems to ensure we haven’t missed
They fill out an online form, securely
                                                             Banking services, tell them about “The                        anything, we feel confident that we
transmit order and payment
                                                             Savings Bond Connection.” It takes                            are ready for the new millennium.
information, and the bond arrives
within two weeks. It’s that simple!                          about 5 - 7 minutes to place an order,                        Please let your customers know that
                                                             depending on the speed of the Internet                        their savings bond investments should
Customers have a choice in level of                          connection.                                                   be just as safe and secure in the coming
security used to protect their payment
                                                             Attractive gift certificates are available                    millennium as they were in this one. If
information as it travels over the
                                                             online for any occasion—birthday,                             they need more information, they can
Internet. They can choose either
                                                             new baby, wedding, or graduation.                             write us at Bureau of the Public Debt,
Secure Sockets Layer (SSL) or Secure
                                                             There are even some “all occasion”                            200 Third Street, Room 507,
Electronic     Transaction       (SET)
                                                             gift certificates!                                            Parkersburg, WV 26106, or they can
technology. SSL is the most common                                                                               ❧         check      out     our    website     at
                                                                                                                           www.savingsbonds.gov/cc/ccy2k.htm.
                                                                                                                                                                                   ❧


                                                                      IN THIS ISSUE
   TELL YOUR CUSTOMERS ABOUT THE SAVINGS BOND CONNECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
   Y2K UPDATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
   OLD BONDS MAY BE IN THE ATTIC OR SAFE DEPOSIT BOX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
   MAKE A GOOD IMPRESSION: STAMP THAT BOND HARD! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
   GET REDEMPTION TABLES ONLINE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
   COULD YOU USE SOME HELP? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
   JUST ASK US! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
   SAVINGS BOND SEMINARS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
   I-BONDS CATCH ON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
   REGISTERED MAIL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
   CUSTOMER INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
   HOME BANKING SALES ARE GROWING! IS YOUR INSTITUTION ONLINE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
   REGULAR SAVINGS THE EASY WAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
OLD BONDS MAY BE IN THE ATTIC OR SAFE DEPOSIT BOX


I
   t may surprise you to know that           fact that we don’t have current               older bonds at home or in safe deposit
   there are over 17 million savings         addresses for these owners. Savings           boxes.
   bonds that have reached final             bonds are inscribed with the owner’s
maturity but have not been                   address at the time of issue. We              It’s also a good idea for them take a
redeemed. That’s about 6 billion             maintain microfilm of paper                   look at the bonds they have on hand
dollars in bonds!                            registration records for matured bonds,       to see which have matured or will
                                             but searching the film is a time-             reach final maturity in the near future
Although some bonds were willingly           consuming and costly manual process,          and start planning what to do with
destroyed during World War II                and there’s no guarantee that decades-        them.
patriotic bond burning rallies, it’s a       old addresses are still correct.
safe bet that most of these matured                                                                     There’s no advantage in
savings bonds are still in the                                                                           continuing to hold
possession of their                                                                                      matured bonds since
owners or their                                                                                          they’re no longer
descendants.                                                                                              earning        interest.
                                                                                                          Further, tax liability is
In some cases, owners                                                                                     incurred in the tax
may know about the                                                                                         year that the bonds
bonds but have chosen                                                                                      reach final maturity
not to redeem them. In                                                                                     unless     they     are
other cases, the bonds                                                                                     exchanged. Within
have been misplaced                                                                                         the first twelve
or forgotten.                                                                                               months after reaching
                                                                                                             final maturity, Series
These bonds represent                                                                                        E bonds and savings
money the American                                                                                       notes may be exchanged
public is entitled to, and                                                                 for Series HH savings bonds with
Treasury wants to see                                                                      continued tax deferral on the accrued
that it is received by the persons           We’re asking for your help in getting         interest. (Unmatured Series E bonds,
entitled.                                    the word out to your customers about          savings notes, and Series EE bonds at
Our efforts to contact owners of             matured and maturing bonds. With a            least six months old may be
matured bonds are complicated by the         little sleuthing, they may find forgotten
                                                                                                             (Continued on page 5 )

About ten years ago Public Debt inaugurated a “40-30-20” final maturity schedule that makes it easy to determine when Series E, EE,
H, HH, and I bonds, and savings notes stop earning interest.
Final maturities are as follows:

       SERIES                         ISSUE DATES                         LIFE OF BOND                  MATURITY DATES
          E                    May 1941—November 1965                        40 Years               May 1981—November 2005
          E                    December 1965—June 1980                       30 Years               December 1995—June 2010
    Savings Notes               May 1967—October 1970                        30 Years                May 1997—October 2000
         EE                          January 1980—                           30 Years                     January 2010—
          H                  February 1957—December 1979                     30 Years             February 1987—December 2009
          I                        September 1998—                           30 Years                   September 2028—
         HH                          January 1980—                           20 Years                     January 2000—
All other Savings Bonds reached final maturity before this schedule was announced. Their maturities are as follows:

       SERIES                        ISSUE DATES                          LIFE OF BOND                   MATURITY DATES
         A                    March 1935—December 1935                       10 Years               March 1945—December 1945
         B                   January 1936—December 1936                      10 Years              January 1946—December 1946
         C                   January 1937—December 1938                      10 Years              January 1947—December 1948
         D                     January 1939—April 1941                       10 Years                January 1949—April 1951
         F                       May 1941—May 1952                           12 Years                  May 1953—May 1964
         G                       May 1941—May 1952                           12 Years                  May 1953—May 1964
         J                       June 1952—April 1957                        12 Years                  June 1964—April 1969
         K                       June 1952—April 1957                        12 Years                  June 1964—April 1969
         H                     June 1952—January 1957                     29 Yrs. 8 Mos.          February 1982—September 1986

2
                                                                                    COULD YOU USE
MAKE A GOOD IMPRESSION: STAMP THAT BOND HARD!                                       SOME HELP?


W                                                                                   I
        hy is it important for a         sent to the owner. Information shown          f you don’t have access to our
        teller to impress a legible      in the payment stamp is often all the         website (www.savingsbonds.gov),
        payment stamp on a bond          owner needs to help him remember              you need the “Savings Bond
when making payment?                     the transaction.                           Resource Guide” an easy-to-use
                                                                                    guide book just for savings bonds
A legible payment stamp on the face      The agent must cancel a paid bond by
                                                                                    agents. It’s full of useful information,
of a bond: cancels the bond and          imprinting a “PAID” stamp on the
                                                                                    including what form to use and how
establishes that it has been processed   bond in the open space immediately
                                                                                    to fill it out, answers to questions
for payment, provides detailed           to the left of the issue date. The stamp
                                                                                    about savings bond interest, and
payment information for customers        must include the agent’s name,
                                                                                    much more.
who request information or a bond        location, and four-digit code number
photograph from the Bureau of the        assigned by the Federal Reserve            This notebook guide was designed to
Public Debt’s Customer Service           Bank. The amount paid and the actual       help you help your customers.
Branch, and enables the Bureau of        date of payment must be inserted, as       Because it’s a notebook, you can
the Public Debt to easily identify the   well as the initials, signature, code or   make it even more useful by inserting
paying agent if information is           symbols of the officer or employee         your own tabs for the parts you look
needed about a payment.                  who approves or makes payment.             at most frequently. To get a copy
                                         See the current revision of                contact your Federal Reserve Bank
We want to provide good customer         Department Circular No. 750 for            savings bond processing site: Buffalo,
service to savings bond investors.       specific instructions for procuring        New York; Pittsburgh, Pennsylvania;
When the Bureau receives an inquiry      payment stamps and recording               Richmond, Virginia; Kansas City,
concerning a bond shown as paid, a       payment data on bonds.                     Missouri;     and     Minneapolis,
photograph of the bond is sometimes                                        ❧        Minnesota. Each site has a toll-free
                                                                                    telephone number (listed in the
                                                                                    Guide) for the exclusive use of
                                                                                    institutions that serve as savings
                                                                                    bond agents:
GET REDEMPTION TABLES ONLINE
                                                                                    Buffalo . . . . . . . . . . . . . .1-800-234-2931
                                                                                    Pittsburgh


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      he familiar paper redemption       The tables are in “pdf” format, so          (RDS Transactions) . .1-800-521-7569
      tables for savings bonds are       you’ll need the Adobe Acrobat               (Other Transactions) .1-800-245-2804
      now available in electronic        Reader to view the file. It’s available
                                                                                    Richmond . . . . . . . . . . .1-800-322-1909
format from Public Debt’s website.       free from Adobe’s website,
It’s simple to view and print all        www.adobe.com.                             Kansas City . . . . . . . . .1-800-333-2919
or part of the 6-month table of
savings bond values. The electronic      Public Debt will eventually stop           Minneapolis . . . . . . . . .1-800-553-2663
                                         printing paper redemption tables, as                                                     ❧
version provides a menu of links to
help you jump directly to the            agents begin using electronic pricing
information you’re looking for—fast!     tools such as BondPro and CRV. But         CORRECTION
You     can    download      it   at     there’s good news for those who
www.savingsbonds.gov/sav                 prefer paper tables to electronic


                                                                                    A
                                         pricing...you can still download and              Bond Teller article on Savings
/savrdtbl.htm. It usually takes less                                                       Bonds seminars given at the
than 2 minutes to download,              print redemption tables from our
                                         website!                                          Federal Reserve savings
depending on the speed of your                                                 ❧    bonds processing sites gave a wrong
Internet connection.                                                                number for the Kansas City Federal
                                                                                    Reserve Bank. The correct number is
                                                                                    1-800-333-2919.                    ❧


                                                RATE INFORMATION
              Current interest rates on savings bonds can be obtained by calling the toll-free recording
                                         1-800-4US-BOND (1-800-487-2663).


                                                                                                                                   3
JUST ASK US!                                                                         SAVINGS BOND SEMINARS


D                                                                                    C
          o customers ask questions         A. The giver’s name can’t be added              oming soon to a city near you
          about savings bonds that you      to a gift bond using the systems now            are Savings Bond Seminars, a
          can’t answer?                     used to process bond orders. The                must for the well-informed teller
                                            Bureau of the Public Debt                or customer service representative.
Do you and your co-workers ever             understands customers’ concerns and
have questions about savings bonds          is planning to meet this need as new     The Federal Reserve savings bond
that you would like us to answer?           systems are developed over the next      offices are setting up next year’s
                                            few years.                               schedule for these informative
We want to hear from you! We’ll                                                      sessions in convenient locations across
answer as many questions as we can          In the meantime, if your customer        the country.
right here in “The Bond Teller.” Just       wants a gift bond mailed directly to
jot your questions on a postcard and        the person who is receiving the gift,    Here are just a few of the topics
send them to:                               offer them a gift certificate that the   offered: Advantages of Savings
                                            buyer can send to the person named       Bonds; Tax Treatments, including the
Question for “The Bond Teller”                                                       Savings Bond Education Program;
Division of Staff Services, 200 Third       on the bond to let him or her know
                                            that a bond will be arriving soon.       Comparing Bonds: Series E, EE, H,
Street, Room 507, Bureau of the Public                                               HH, and I; Purchasing Bonds and the
Debt, Parkersburg, WV 26106-1328.           If your customer doesn’t want to send    Regional Delivery System; Interest
Or e-mail your questions to                 a gift certificate but doesn’t mind      Rates; and Redemption, Reissue, and
savbonds@bpd.treas.gov, and be sure         having the bond mailed to him or her     Exchange. If you’re interested in other
to tell us in your message that your        first, there is another option.          topics, contact your servicing Federal
question is for “The Bond Teller.”                                                   Reserve Office.
                                            Fill out the purchase order to show
Here’s a question many of you receive       the purchaser’s name in box 2. Under     To find the seminar schedule call your
from customers:                             “NAME OF PERSON TO RECEIVE               Federal Reserve servicing site or go to
                                            BONDS        IF   OTHER      THAN        www.frbservices.org/Treasury/
Q. When I buy bonds as gifts, why           THE OWNER OR FIRST-NAMED                 SavingsBondsSeminarSchedule.cfm.
can’t the bond also show my name as         COOWNER ABOVE” (“BONDS TO                In addition to the seminar schedule
buyer and giver of the gift so that the     BE DELIVERED ‘CARE OF’” on               you’ll also find contact names and
person getting the gift will know who       older order forms) and purchaser’s       phone numbers.                      ❧
it’s from and I’ll know they received it?
                                                           (Continued on page 5)



    Change of Address

    Editor: Please change the mailing address

    From: (Recipient please affix old label here or provide the identification number printed
          above the address on the label.)



    To:




    Please change the number of copies I receive

    from               to

                  I no longer wish to receive “The Bond Teller.”

4
                                                                                             CUSTOMER
OLD BONDS
                                                                                             INFORMATION
(Continued from page 2 )                      back of each bond, and you must
                                              establish that person’s identity as if


                                                                                             Y
exchanged for Series HH bonds at any          you were cashing the bonds.                          our customers may receive
time; however, Series I bonds are not                                                              information on bond earnings
eligible for exchange.)                       Some of your customers may come                      and values by sending a post
                                              across records that indicate bonds             card to the Bureau of Public Debt,
As an authorized paying agent, you            were purchased (old payroll                    200 Third Street, Parkersburg, WV
may cash matured Series A-E bonds             deduction records or a serial number           26106-1328. Ask for Savings Bonds
and savings notes as long as the              list, for example), but not the bonds          Earnings Report, Savings Bonds
presenter provides proof of identity          themselves. If this is the case they           Investment Yield Tables and/or
and entitlement as set out in the             should contact the Division of                 PD F 3600, an abbreviated version of
Identification Guide for Cashing              Transactions and Rulings, Savings              the Tables of Redemption Values. ❧
United States Savings Bonds,                  Bond Operations Office, Bureau of
PD F 3900.                                    the Public Debt, Parkersburg, WV
                                              26106-1328. The Savings Bonds
If your customers present matured             Resource Guide details the
bonds that you are not authorized to          information that should be supplied
cash, for example, an H bond, you             to support a claim for lost, stolen, or               HELP
should forward them to your
servicing Federal Reserve Bank with
                                              destroyed bonds. If we identify                      WANTED!
                                              matured unredeemed bonds on our
any required supporting evidence as           records, and are satisfied that the               We need a few paying
outlined in the Savings Bond                  claimant is entitled, a check for their           agents to help test a new,
Resource Guide. The person                    redemption value will be issued to
requesting payment must sign the                                                                expanded version of
                                              the claimant.                       ❧             BondPro. BondPro is our
                                                                                                newest tool for pricing
                                                                                                savings bonds.
                                              I-BONDS CATCH ON
  JUST ASK US!                                                                                  BondPro Version 2.0 has

                                              T
 (Continued from page 4)                            he idea of an inflation-indexed             features you asked for,
                                                    bond seems to have caught the               like reprinting receipts
address in box 3 under “ADDRESS                     imagination of many Americans.
WHERE BONDS ARE TO BE                         Sales for the bond reached $400
                                                                                                and editing customer
MAILED.”                                      million in just 11 months, September,             transactions. And, Version
                                              1998 to July, 1999.                ❧              2.0 will let you select your
The bond can then be mailed to the
                                                                                                database from: Microsoft
purchaser so that he or she may
either mail the bond to the intended                                                            Access or SQL Server, IBM
recipient or present it in person. This                                                         UDB (DB2), or Oracle.
                                              REGISTERED MAIL
way a personal message may be
included on a card or in a letter. In                                                           If you’re interested in

                                              S
addition, although the purchaser’s                ince Savings Bonds are registered             helping us make BondPro
name on the bond immediately                      by name and by Serial Number,                 2.0 available as soon as
below the owner’s or first-named                  your customers really don’t need
                                              to mail bonds by Registered Mail.
                                                                                                possible, please call Becky
coowner’s name does not give any
ownership rights, it does serve as a          Keep a good record of bonds owned                 Wright at (304) 480-6319
reminder of who bought the bond. ❧            and postage money can be saved to                 to find out more.
                                              buy more bonds.                    ❧




                                               ANY QUESTIONS? LET US KNOW
                                                Do you have any questions? Let us know.
Questions may also be sent to: Sheila E. Nelson, Editor, The Bond Teller, Bureau of the Public Debt, 999 E St., NW Washington, DC 20239.




                                                                                                                                      5
                                                                                    REGULAR SAVINGS
HOME BANKING BOND SALES ARE GROWING!                                                THE EASY WAY
IS YOUR INSTITUTION ONLINE?

                                                                                    T
                                                                                          he U.S. Savings Bonds
                                                                                          EasySaver™        Plan     was
                                                                                          specifically designed for
                                                                                    customers who want to participate in
                                                                                    a systematic, recurring savings bond
                                                                                    purchase plan. It is another way to
                                                                                    sign up to buy bonds, filling in the
                                                                                    gap for people who don’t have
                                                                                    payroll savings plans where they
                                                                                    work, or whose banks don’t offer a
                                                                                    Bond-A-Month plan.
                                                                                    EasySaver uses ACH debits to the
                                                                                    purchaser’s account to automatically
                                                                                    issue savings bonds, at least two a
                                                                                    year, and so is not suitable for every
                                                                                    purchase.

PARTNERS: Scott Ludrick (left), Regional Director, Savings Bonds Marketing          It certainly was not intended to
Office, Dallas, Texas, presents a “Partners for the Future” certificate to Dan      replace the Regional Delivery System
Martin, President Q-UP Systems, Inc.                                                (RDS), and many customers find
                                                                                    banks such as yours to be the most


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      he United States Department of      approximately three weeks after           convenient and accessible place to
      Treasury recently presented a       filling out the paperwork at the bank.    buy bonds.
      “Partners for the Future”
certificate of recognition to Q-UP        With the Internet banking purchase of     Your customers come to you for a
Systems, Inc. of Austin, Texas.           savings bonds, consumers receive          full range of financial services, so if
Q-UP is a leading provider of             their bonds by mail in about one week.    they ask about the EasySaver plan
web-based financial products.                                                       keep this toll-free number, website,
                                          “We want to make it easier for
                                                                                    and address handy to tell them
The certificate recognized the            customers to purchase U.S. Savings
                                                                                    where they can obtain more
company for providing for the             Bonds and through our partnerships
                                                                                    information, an enrollment form and
purchase of Savings Bonds through         with Q-UP Systems and their
                                                                                    even a return envelope:
their Internet banking system             financial institution customers we are
product.                                  providing another avenue for              Call 1-877-811-SAVE (7283), or
                                          this to happen,” said Van Zeck,           visit the EasySaver website,
U.S. Series EE and I Savings Bonds of     Commissioner of Public Debt.              www.easysaver.gov, or write to:
up to $10,000 may be purchased via        “Q-UP’s large customer base across        U.S. SAVINGS BONDS
Q-UP Internet Banking System. The         the country significantly increases the   EASYSAVER PLAN,
Savings Bonds module is a standard        number of financial institutions that     P.O. BOX 802,
feature of their home banking system.     will now offer this convenient new        PARKERSBURG, WV 26102-0802. ❧
                                          way to save.” Other companies who
The traditional method of purchasing      have been providing home banking
Savings Bonds requires a good bit of      bond sales are Digital Insight,
paperwork. Now, with the automated        Calabasas, California; and SBS
online service, purchasers simply fill    Corporation, Birmingham, Alabama.
out their personal identification         More vendors are planning to
information online, select the type,      provide bond sales in the future. The
                                                                                     The Bond Teller is a publication of
denomination, and number of bonds                                                    The Department of the Treasury
                                          Bureau of the Public Debt expects          Bureau of the Public Debt
they want and submit their purchase       more than 100 financial institutions to    Washington, D.C. 20239
to their financial institution. The       be selling bonds online by the end of
institution then charges the customer’s   the year. To learn more about selling      Editor: Sheila E. Nelson
selected account for the bonds and        bonds online:
sends the order electronically to the      • Visit: www.savingsbonds.gov/sav
savings bonds processing center at the       /savhb.htm
Federal Reserve. In the past,              • Call: 304-480-3600
consumers would receive their bonds        • E-mail: Homebank@bpd.treas.gov                                       SB 2330
                                                                             ❧
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