The Retail Securities Services program serves more than 55 million investors in Treasury securities, most of whom are individuals. We want to make it as efficient and easy as possible for the public to learn about our products and services, make informed decisions about buying Treasury securities, and manage their Treasury investments efficiently.
This program encompasses the issuance, servicing, and redemption of U.S. Savings Bonds in both electronic and paper form, as well as marketable Treasury securities sold in electronic form directly to retail investors. It also includes the servicing and redemption of outstanding marketable securities that were issued in paper form.
Operationally, this program has four distinct elements:
TreasuryDirect®: The centerpiece of Retail’s strategic direction is this self-service, Internet-accessed system. Customers establish their TreasuryDirect accounts, purchase electronic securities, direct electronic payments to their bank accounts, and manage their holdings online, at their convenience, and in a secure environment. Owners of paper savings bonds can convert their bonds to electronic form to hold in TreasuryDirect. Launched in 2002, TreasuryDirect initially offered electronic savings bonds and was later expanded to include marketable Treasury securities for individuals. More than 270,000 accounts hold over $8 billion.
Paper Savings Bonds: This element includes all Public Debt, Federal Reserve, and other agent activity to issue, service, and redeem paper savings bonds. Some 55 million people hold almost 700 million paper savings bonds worth more than $190 billion.
Legacy Treasury Direct: Introduced in 1986 when Treasury began issuing marketable securities exclusively in electronic form, this program element encompasses all Public Debt and Federal Reserve activity to establish and service book-entry accounts for marketable securities in Legacy Treasury Direct. Customers hold more than $67 billion in 348,000 accounts.
Paper Marketable Securities: Although Treasury stopped issuing marketable securities in paper form in 1986, we still service outstanding obligations. The last issue of these definitive securities will mature in 2016. By FY 2009, there will be less than $40 million outstanding in certificates not yet eligible for redemption.
Our strategies for the Retail Securities Services program are: