Government Site for Buying Savings Bonds Shows Its Age

Bank branch closings during the pandemic may have added another challenge. Some banks may offer remote online notary services, but laws vary by state. (The TreasuryDirect form required for changing banks states that “notary certification is not acceptable,” but it may be allowed if the notary is a bank employee, according to TreasuryDirect.)

The TreasuryDirect website was created in late 2002 as part of a federal shift from paper to digital bonds, replacing a system that let people buy bonds on the phone.

“The system will provide greater flexibility and convenience for the investor by eliminating the paperwork burden inherent in the current TreasuryDirect system,” according to the announcement about the website published in the Federal Register. The notice said that “the online transactions that an account owner may conduct” included “making changes to account information.”

John Rizzo, a Treasury Department spokesman, said in an emailed statement that a paper form was a security step “aimed at preventing unauthorized transactions.” Banks will typically certify the form without charge, he said. (Mr. Tumin, however, said some branches might charge you a fee, depending on your relationship with the bank.)

The department is developing an “updated, modern replacement” for the TreasuryDirect system with security protocols that allow account changes without paper forms, Mr. Rizzo said. He didn’t cite a timeline but said the upgrade was “a priority.”

“We are committed to ensuring that TreasuryDirect users have a positive customer experience in addition to keeping their financial information safe,” he said.

Here are some questions and answers about using TreasuryDirect:

If I mail the form to change my bank, how long does it take TreasuryDirect to update my account?

The customer’s TreasuryDirect account is usually updated within 10 business days after a completed form is received, Mr. Rizzo said.

Article source: https://www.nytimes.com/2022/03/11/your-money/savings-bonds-inflation.html