Problem with Treasury Direct Account:

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Nowizard
Posts: 4842
Joined: Tue Oct 23, 2007 5:33 pm

Problem with Treasury Direct Account:

Post by Nowizard »

We have paper bonds but have had no TD account since they were purchased in 2003 directly at a bank where we held an account at the time. Wanting to cash them, we determined our CU does not cash them and there may be an issue with banks where you have no account and that they limit amount cashed to $1,000 with only simple documentation. Consequently, an account was created with TD anticipating conversion of paper to electronic bonds, but the account will not allow it since the paper bonds are not in what is apparently another account never created. I will send them to TD, filling out appropriate forms. However, our CU account has two "precertification" pending amounts for zero dollars this morning. I assume they assume we are creating an account prior to purchases and testing accuracy of our account but do not know for sure. Is that correct?

Tim
BrokerageZelda
Posts: 463
Joined: Sat Apr 10, 2021 10:39 am

Re: Problem with Treasury Direct Account:

Post by BrokerageZelda »

When I linked my Fidelity CMA to my TD account (with the paper form), I noticed a $0.00 preauthorization-style entry on my online banking that disappeared on its own a few days later. This does appear to be TD double-checking that the account is real, and is nothing to worry about.

When you say "account will not allow it", did you successfully create a 'Conversion Linked Account', which is specifically used for receiving paper savings bonds for conversion to electronic form? Here is TD's directions page for the conversion account creation and mailing-in process:

https://www.treasurydirect.gov/indiv/he ... ertpapersb
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