SAVINGS BONDS

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EZ Clear - Depositing Savings Bonds

There are two deposit methods available in the EZ Clear program: A Mixed Cash Letter and an EZ Clear Fine Sort Cash Letter.

Mixed Cash Letter

A Mixed Cash Letter allows savings bonds to be commingled with other work types (for example, commercial and government checks, non-cash items, and the like).

  • All Mixed Cash Letters are deposited at the Federal Reserve Bank of Cleveland for processing and crediting of the items.
  • Financial institutions depositing Mixed Cash Letters are not eligible for Redemption Fee Commission because the Cleveland Federal Reserve Office separates the bonds from the mixed deposit before forwarding them to the EZ Clear Central Processing Site.

EZ Clear Fine Sort Cash Letter

A Separately Sorted Cash Letter (EZ Clear Fine Sort Cash Letter) contains only eligible EZ Clear Savings Bonds.

  • The EZ Clear Fine Sort Cash Letter should be mailed directly to the TRS site at the Federal Reserve Bank of Minneapolis. Please note, the Federal Reserve Bank Check Collection department has implemented a $20 re-forwarding fee for Separately Sorted Cash letters sent to Federal Reserve Bank offices other than Minneapolis.
  • All deposits are credited and processed by the Minneapolis TRS site.
  • You should use the EZ Clear Fine Sort Cash Letter form.
  • There is no charge for submitting Separately Sorted Cash Letters (that include only redeemed savings bonds) directly to the Minneapolis TRS site.

NOTE: Cash Letters that contain other work types will be considered a “Mixed Cash Letter” and will be sent back to the Federal Reserve Bank of Cleveland for processing. For more information regarding EZ Clear Cash Letter deposits, please contact EZ Clear customer service at (800) 245-2804 and select Menu Option 4, then Option 4 from the recorded menu.

Preparing Bonds for Deposit

When preparing savings bonds for deposit, the following guidelines should be used:

  • All Bonds should be encoded with the Redeemed Amount, not Face Amount, directly on the bond or document carrier.
  • Bonds that do not have an RT number need 000090007 encoded as the Routing Transit number directly on the bond or document carrier (does not need to be bold).
  • Series A-E large style (8 1/2" x 7 3/4") paper Bonds should be placed in a clear-front document carrier with the serial number and issue date visible. All encoding should be done on the document carrier.
  • For all other savings bonds, MICR encoding must be done directly on the bonds. Encoding strips and document carriers are reject repair options only. The use of correction tabs (labels) is strictly prohibited.

When preparing either type of Cash Letter for deposit, the following guidelines should be used:

  • A tape (called a Detail) listing all the amounts in a bundle of work should be attached to each bundle.
  • Cash Letter information should include: the financial institution’s RT number, date of deposit, total items deposited and total dollar amount deposited, and any bundle amounts listed that equal the total dollar amount deposited.

Savings Bond Repair Options

To repair savings bonds, you may use one of the following options:

  1. Place an Encoding Strip on the bottom of the bond and encode directly on the strip.
  2. Place an encoding tab on the bottom of the bond and encode on the tab. Please DO NOT cover any part of the Bond Serial Number with the encoding tab.
  3. Place the bond in an approved document carrier that is clear on both sides and encode directly on the carrier.

When using document carriers, please do not staple, tape, or use another form of adhesive. If the document carrier has a pressure sensitive adhesive strip, please DO NOT remove the protective covering which exposes the adhesive. Removing the protective covering will cause the adhesive to tear or possibly mutilate the bond when the Central Processing Site removes the bond from the carrier after processing. Approved document carriers should meet Federal Reserve Bank Return Item Guidelines.

Please see Depositor MICR Encoding Guidelines for more information.

  Mixed Cash Letter Bonds mixed with other items Separately Sorted Cash Letter Bonds are the only items
Teller Requirements: Same as current Same as current
Encoding Required*: Redeemed Amount & RT number 000090007 Redeemed Amount only
Deposit Deadline: Local Federal Reserve Office “Mixed” Check deposit deadline Local Federal Reserve Office Check deposit deadline. If none, noon M-F
Funds Availability: Same day Same day (immediate)
Processing Charge: Local Federal Reserve Office “Mixed” POMO/Government per item fee No processing charge
Redemption Commission: Redemption commission will not be paid to “Mixed” depositors Redemption commission will be paid to the R/T on the Cash Letter
Deposit Options**: Directly to local Federal Reserve Office Check Department, or through normal correspondent/respondent check arrangements Directly to local Federal Reserve Office Check Department, or through normal correspondent/respondent check arrangements
Adjustment Inquiries: Directly to local Federal Reserve Office Directly to EZ Clear Central Processing Site

*Encoding in the Transaction Code (TC), the Account Number (A/N), and Auxiliary On-Us Fields are strictly prohibited. Also, encoding a Routing/Transit number except 000090007 is also prohibited.

** Before depositing savings bonds with a correspondent, please verify that they are willing to accept these items. Also, please note that neither the Treasury nor the Central Processing Site will be responsible for forwarding redemption fees to institutions except those depositing an EZ Clear Cash Letter directly to their local Federal Reserve Office. So, please clarify with your correspondent if and how you will receive redemption commission from them.