The Treasury Direct is now having issues giving customers money, according to reports of individuals being unable to convert their bonds into cash.

A Treasury Direct customer took it to Reddit’s personal finance forum asking for help after depositing EE bonds in the amount of $20,000.

A Series EE savings bond is a type of U.S. savings bond issued by the U.S. Department of the Treasury.

They are a low-risk way to save money, guaranteed to double in value within 20 years.

EE bonds earn interest for 30 years or until they are cashed in, and they are sold at half their face value.

Reddit user 1d0wn5up says they submitted the paper bonds to Treasury Direct since no banks locally would cash them.

“Treasury direct said the paper bond receipt that I sent in was not the “actual bond” or basically not what they needed but that was all I had as proof on my end.

They then had me start the process of lost/stolen bond.

I filled out the 1048 form, had it notarized etc.

It was submitted and accepted they also had me included my direct deposit info.

From what I’ve read the lost / stolen process once they confirm it then gets converted over to an electronic bond and reissued.

The website says up to 4 months for this process.

I have reached out many times and I keep getting told that basically my case hasn’t been assigned yet.

It’s now been over 7 months – the bond has reached full maturity years ago and earned over $1k in interest.

I’ve looked through forums of others that went through this process and I understand it isn’t quick but I can’t find anybody that’s going on this long with no communication or end game in sight.

I did speak to one rep who told me if I’d like I could send in a letter explaining as to why “I need my money in a quicker timeline” and by doing so that could get my case moved up through the ladder.

This all seems a bit crazy to me to have to prove why I need my money instead of just giving me what’s rightfully mine.”

Treasury Direct Customers Get Money Frozen

Issues with Treasury Direct aren’t new.

Customers have personally reached out to Franknez.com over the years to raise awareness of several concerns and issues.

In August of 2023, Tammarra Johnson reported to FrankNez that TreasuryDirect had frozen her account ever since she made a deposit going all the way back to April.

Users have the ability to purchase securities directly from the US Treasury with TreasuryDirect.

However, giant financial institutions have access to TreasuryDirect’s auction house which means they have priority over individual customers.

Finance Strategists reports that securities purchased through TreasuryDirect cannot be sold in the secondary market before they mature.

“This lack of liquidity could be a disadvantage for investors who may need to access their investment capital before the securities’ maturity.”

But Johnson’s issue is a little different – TreasuryDirect froze the account after a deposit from a settlement.

“My account has been frozen since April right after I deposited $1,500 from a settlement.

I mailed in the required form from my bank that was needed to unlock my account and it is still locked.

It’s sad to know financial institutions are basically taking citizens money like times aren’t already hard.”

Just ten months prior, Samuel Clemens reported having a similar issue.

“I’ve been buying iBonds for 10 years.

So earlier this year, 4 years after I opened some some proprietorship accounts, t direct finally comes back to me to query some of the registrations.

There’s no way to speak with them.

Emails are ignored and written correspondence takes months.

In the meantime, my accounts are frozen, and I do not have access to my money. 

If this were a private business, fraud charges would be laid!

How about organizing a campaign to write to our congressional representatives to fix this?

The IRS takes months to process returns, and the treasury can’t handle a simple savings program for citizens.

It’s a national disgrace.”

This is a developing story – if you or someone you know has faced injustices such as these, email us your story at media@franknez.com to raise awareness.

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Related: US Treasury Direct Customers Now Unable to Withdraw Money

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