Are we required, as an FDIC bank, to cash savings bonds for non customers?

The Bureau of Public Debt has several great resources for savings bonds. One of these is the Savings Bond Resource guide. I require this to be in place at all branch offices (or available online). There is a very handy one-page quick guide for branch personnel to use for these type issues.

Link is: http://www.publicdebt.treas.gov/sav/sav.htm

Agents are expected to redeem bonds for individuals with appropriate identification; however, there is a $1,000 limit on redeeming bonds based solely on documentary ID. As I recall a customer must have an account with your bank for six months before they are considered an established customer of the bank.

Section 321.10 Responsibilities of paying agent.

(a) Payment of securities. A paying agent is required to redeem eligible securities during its regular business hours by for any presenter, whether or not a customer, who can establish his or her identity as the owner or co-owner named on the securities.

Subpart G-Miscellaneous Provisions

Section 321.23 Paying agent fees and charges.

(b) Charges to presenters. A paying agent shall NOT make any charge whatever to persons entitled to request payment of securities, for redemming them under the provisions of this part.

Hope this helps.

What deems us a "paying agent"?

Subpart A-General Information

Section 321.1 Definitions

(i) Paying agent or agent means:

(1) A financial institution that is qualified under the provisions of this part as originally issued, or any subsequent revisions, to make payment of securities, and includes branches located within the United States, its territories and possessions, and the Commonwealth of Puerto Rico; and

(2) Any banking facilities of such institutions establishing at military installations overseas, provided the offering of such redemption services has been authorized by the Department of the Treasury.

Hope this helps.

The short answer is that you have to apply and be approved to be a paying agent. Paying agents don't "just happen." So you are not required to redeem bonds just because you're FDIC insured.

One quick way to find out is to go to your teller line and ask if they have a savings bond agent stamp.