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Conference 7.286::dcu

Title:	DCU
Notice:	1996 BoD Election results in 1004
Moderator:	CPEEDY::BRADLEY

Created:	Sat Feb 07 1987
Last Modified:	Fri Jun 06 1997
Last Successful Update:	Fri Jun 06 1997
Number of topics:	1041
Total number of notes:	18759

687.0. "Redemption of US Savings Bonds" by TLE::EKLUND (Always smiling on the inside!) Mon Aug 30 1993 16:12

    	While not directly related to the DCU, this may be a good forum
    for the following question.  My son recently attempted to cash a
    US Savings Bond at a local Savings Bank.  They would not cash the
    bond because he did not have an account there.  I went back with
    him and they cashed the bond for him, but not without rather a
    certain amount of fuss.  They claimed that they were NOT obligated
    to cash the Savings Bond, even with "proper identification" because
    they might get stuck for the amount (stolen bond, etc.).
    
    	Now, this particular Bank DOES cash such bonds (is an "agent"),
    but apparently only for its customers with accounts.
    
    	My question is this: are such banks who act as paying agents
    REQUIRED to cash US Savings Bonds upon request when presented with
    proper identification?  I checked the pamphlet and the bond itself,
    and there are far too many uses of the word "may" for my liking...
    If they are not REQUIRED to do so, I will encourage whoever will listen
    to NOT purchase these in the future.
    
    	If they ARE required to redeem such bonds (under $1000., which is
    a magic number, by the way), how can I a) prove this to them and
    b) cause them more inconvenience than they caused me?  In other words,
    what is the most effective way to complain?  You can be sure that I
    have recorded the Assistant Manager's name who "served" us.
    
    Still smiling, but not one to let such treatment go unnoticed...
    
    Dave Eklund

T.R	Title	User	Personal Name	Date	Lines
687.1	Banks need not cash US Savings Bonds	TLE::EKLUND	Always smiling on the inside!	`Thu Sep 02 1993 14:52`	10
	The "official" answer from the Treasury Department in Massachusetts is that there is NO requirement that an agent redeem a bond "on request". Banks who redeem them set their own requirements (in addition to the federal identification requirement), and may require that the customer have an account there. Grr. My response to that is simplicity itself - I'll put my money elsewhere. Dave Eklund
687.2	Where to redeem?	MPGS::WENTWORTH		`Wed Aug 10 1994 14:47`	13
	Much to my surprise I just found out that I could not cash in on US Savings Bonds at the DCU. I found this strange since we can purchase bonds through payroll deduction. Realizing of course the DCU and Digital are separate entities I would have thought DCU would offer the service (wrong). OK...Now that lots of Digital folk have savings bonds and also have there bank accounts at the DCU where can somebody go in the Northboro, MA area to cash in...Many banks will not do this service unless you have an account with them. My wife has already been checking with a few. Help appreciated,
687.3		CRASHR::JILLY	COSROCS -- In Thrust We Trust	`Wed Aug 10 1994 15:10`	6
	It is my understanding that not all 'banks' can provide this service due to some US Govt. reason. I also understand that any bank that is a redemption agent should do so whether you have an account or not. I had no problem finding a 'bank' in Colo. Spgs. to do this. Jilly
687.4		BIGQ::GARDNER	justme....jacqui	`Wed Aug 10 1994 16:51`	4
	Hudson Savings Bank is a redemption center.
687.5	In MRO also	MEMIT::MMCCALLION		`Thu Aug 11 1994 11:48`	2
	Marlboro Savings Bank on Main St, in Marlboro also handles USBonds.
687.6		BIGQ::GARDNER	justme....jacqui	`Thu Aug 11 1994 14:17`	4
	I believe that any SAVINGS bank is a recognized entity for savings bonds.
687.7	DCU <> bank	MONTOR::KYZIVAT	Paul Kyzivat	`Thu Aug 11 1994 14:22`	3
	I guess this just proves that the DCU is not being run as a bank. :-) Paul
687.8		WRKSYS::SEILER	Larry Seiler	`Thu Aug 11 1994 14:44`	1
	No... it's not being run as a SAVINGS bank. :-)
687.9		TLE::EKLUND	Always smiling on the inside!	`Fri Aug 12 1994 17:49`	13
	As I indicated earlier, it was in fact a savings bank which refused to cash a savings bond (not having an account there was the problem). I checked with Federal Reserve Bank, and got the official answer - they are NOT required by law to redeem Savings Bonds, even if they sell them. They ARE allowed to require that you have an account with them, etc. if they so choose. Any bank which chooses to redeem Savings Bonds does so because they choose to, not because they are required to... Cheers! Dave Eklund
687.10	It's good to have an account at a bank	WRKSYS::REISERT	Jim Reisert, AD1C	`Fri Aug 12 1994 18:58`	16
	A couple of years ago, I had to get a "guaranteed signature" in order to open a checking account against a money market account. At the time my only accounts were at DCU, and DCU could not perform this service. I could get a guaranteed signature at a Federal Bank (ie. FDIC insured, as opposed to a credit union). Unfortunately, most would not do it unless I had an account there. I finally found one that would do it for a fee (Hudson National Bank, $5), and shortly thereafter opened an accont at Fleet. I'm glad I have this account, I want to redeem some savings bonds as well, and don't want to have to go searching for some bank to do it. Depending on the outcome of the DCU elections, I may keep only this account. - Jim
687.11	What is a guaranteed signature?	AWECIM::MCMAHON	Living in the owe-zone	`Mon Aug 15 1994 12:28`	6
	What is a guaranteed signature? How is it different from a notarized signature? Just curious because I've never heard this term. P@
687.12		PCBUOA::GIUNTA		`Mon Aug 15 1994 13:43`	5
	A guaranteed signature is used on negotiables like stocks that you send to a broker where a notary is used on legal documents. They're basically the same thing but are regulated by different organizations. You can't substitue a notarized signature for a guaranteed signature and vice versa.