3 Changes To Treasury Direct You Need To Know

TreasuryDirect has required ID.me for customer logins since late October, ended its online Treasury Hunt search tool last year and is reporting months-long waits for some paper-bond services, according to a Kiplinger report citing TreasuryDirect information. The changes affect how savers access accounts, look for missing bonds and plan around redemptions or conversions.

ID.me is now the login route for TreasuryDirect accounts. Customers who already use the identity-verification service elsewhere may still need to complete additional checks before accessing TreasuryDirect. People creating an account may be asked for a Social Security number and a photo of government-issued identification, such as a driver’s license or passport; a selfie taken with a smartphone may also be required.

The Treasury discontinued Treasury Hunt, its online tool for searching for lost or unredeemed savings bonds. The report says the change followed a provision in the SECURE 2.0 Act calling for the Treasury to share information about some unredeemed, matured bonds with states, which can add the property to unclaimed-property databases. That state-based program remains in development, so those databases are not yet a dependable replacement, according to the report.

For paper bonds, TreasuryDirect lists estimates of 11 months or more for claims involving lost, stolen or missing savings bonds; nine months or longer to convert paper bonds to electronic form; and at least three to five months to cash paper bonds. The Treasury attributes the waits to a high volume of requests. The figures are processing estimates, not guarantees, and actual timing may vary.

Plan Around Paper-Bond Waits

The changes can affect both access to an account and when a saver can use money held in paper bonds. Customers who need to sign in may have to complete ID.me verification, while people seeking missing bonds no longer have the Treasury Hunt search option. The replacement state-data process is not yet available as a practical search route, according to the source report.

The longest waits matter for households relying on bonds to cover a planned expense. A redemption request that takes several months may not line up with a bill or purchase deadline. Kiplinger cites Tipswatch.com founder David Enna advising people planning to redeem paper bonds to mail their request several months before they need the funds. That is practical guidance attributed to Enna, not a Treasury processing guarantee.

Some people may be able to redeem paper savings bonds at a local bank or credit union, but the report says many institutions restrict the service to customers with accounts there. Savers should check with their institution before relying on that option and review the current Treasury instructions for the relevant form and mailing address.

How Bond Searches and Claims Changed

TreasuryDirect is the federal government’s online service for buying and redeeming U.S. savings bonds. It also allows purchases of marketable Treasury securities, including Treasury bills, notes and bonds, as well as Treasury inflation-protected securities, or TIPS. The changes described here concern account access and savings-bond services; they do not, by themselves, indicate a change to the terms of a particular bond.

When Treasury Hunt was active, users could search online for missing or unredeemed savings bonds. Its discontinuation was tied to the SECURE 2.0 Act provision described in the report, under which information about some matured, unredeemed bonds is to be shared with states. Until the state program is operating and its records are available for searching, holders may need to use the Treasury’s claim process for bonds that are lost, stolen or destroyed.

For such a claim, the report identifies FS Form 1048 as the form to complete and mail. Applicants should provide whatever bond details they have, including the purchaser’s Social Security number and, where available, serial numbers and issue dates. The report says paper-bond redemptions use FS Form 1522. Requirements can depend on the service requested, so customers should check the current form instructions rather than assume one process applies to every request.

„Requests for lost, stolen or missing savings bonds take 11 months or more to process.“

— TreasuryDirect, as reported by Kiplinger

State Search Rollout Still Pending

The source report says the state-based system for locating some unredeemed, matured bonds is still in the works. It does not give a launch date, explain which state databases will become searchable first or say how people will be notified if a bond record is found. The discontinued Treasury Hunt tool therefore cannot yet be treated as replaced by a working nationwide search service.

The processing times are listed as minimums or estimates, and the report does not provide a completion date for any individual claim. It also does not specify whether the backlog is expected to ease or how quickly. Customers should confirm current service estimates and documentation requirements with TreasuryDirect before mailing forms or making plans that depend on a specific payment date.

Check Current Treasury Instructions

Customers who need to access TreasuryDirect should follow its current ID.me sign-in and identity-verification instructions. Anyone filing a claim for a lost, stolen or destroyed bond should review FS Form 1048; those seeking to redeem paper bonds should consult the current FS Form 1522 instructions and TreasuryDirect’s mailing guidance.

People relying on redemption funds for a near-term expense should account for the reported delays and ask their bank or credit union whether it offers paper-bond redemption to existing customers. The next major development to watch is whether the Treasury’s planned data-sharing process gives states a usable way to identify eligible unclaimed bonds. No rollout timetable is provided in the source report.

Key Questions

What changed about logging in to TreasuryDirect?

Since late October, TreasuryDirect has required customers to sign in through ID.me. Existing ID.me users may still need extra identity checks, and new users may need to provide personal information and identity documents.

Can I still use Treasury Hunt to find a savings bond?

No. TreasuryDirect discontinued Treasury Hunt last year. A state-based process for sharing information about some matured, unredeemed bonds is still in development, according to the report.

How long can paper-bond requests take?

TreasuryDirect estimates 11 months or more for lost, stolen or missing bond claims, nine months or longer for converting paper bonds to electronic form, and at least three to five months to cash paper bonds. These are estimates, not guaranteed completion dates.

Which forms are used for missing-bond claims and redemptions?

The report identifies FS Form 1048 for claims involving lost, stolen or destroyed bonds and FS Form 1522 for cashing paper bonds. Check TreasuryDirect’s current instructions for the right form and submission requirements.

Can a bank or credit union cash paper savings bonds?

Possibly. The report says some local banks and credit unions offer the service, but many limit it to their customers. Contact the institution before relying on it.

Source: rss