In the commercial book-entry system, your account records are maintained on the books of the third party you select. Interest and maturity payments are made directly to the third party who disburses the funds to your account. These third parties may charge a fee for the services they provide. Since 1986, all new issues of Treasury bills, notes, and bonds have been issued only in book-entry form. All interest and maturity payments are deposited on time and automatically into an account of your choice through direct deposit.
Direct deposit eliminates the possibility of destroyed, lost, or stolen checks.
You are mailed a statement of account after any transaction or change that affects your master account, including reinvestments. So, make the Smart Exchange. You'll have peace of mind knowing your Treasury investments are safer and more convenient than ever. Call the Smart Exchange today. A Smart Exchange kit will be mailed to you immediately.