Alert: Treasury Dept Changes to Affect DFAS U.S. Savings Bond Allotment Procedures
Jun 28 2010
Indianapolis, June 23, 2010 — The Defense Finance and Accounting Service will stop all current U.S. Savings Bond allotments processed for military personnel, military retirees and federal civilian employees effective July 31, 2010. This comes following the U.S. Treasury’s decision to convert to electronic transactions via TreasuryDirect.gov.
DFAS customers wishing to start or to continue purchasing bonds through payroll deduction will be required to establish an online account with TreasuryDirect. Once they have an account in TreasuryDirect, they can establish a new allotment using the TreasuryDirect account number through their normal pay system.
For individuals without computer access or who desire paper U.S. Savings Bonds, paper bonds will continue to be available and may be purchased at participating financial institutions. Check with your financial institution to see if they offer paper Savings Bonds.
According to a press release from the Treasury Department, the move to require electronic purchases of bonds is part of a larger initiative to increase customer service, security and reliability and, at the same time, reduce the costs associated with printing paper documents. The department estimates the overall push to electronic transactions will save approximately $400 million and 12 million pounds of paper in the first five years.
Information on purchasing Treasury securities is available at the DFAS website.
