Non-client Savings Bond Redemption Fee

Answered by:

Question:

Is there any reason a fee cannot be charged for non-clients redeeming savings bonds? Can this be treated the same as any other non-client check?

Answer:

Yes, there is a reason you cannot charge such a fee. Treasury Regulations at 31 CFR Part 321 govern the payment of savings bonds by financial institutions. Subsection 321.23(b) of that regulation reads: (b) Charges to presenters. A paying agent shall not make any charge whatever to persons entitled to request payment of securities, for redeeming them under the provisions of this part.

First published on BankersOnline.com 7/09/07