TN 6 (09-02)

GN 00603.030 U.S. Savings Bonds


One of the preferred ways of conserving funds for the beneficiary's future is by investing in U.S. savings bonds. U.S. savings bonds are considered to be a wise investment because they accrue interest and are relatively risk-free.

1. Minors and Incapable Adult Beneficiaries

Representative payees may use conserved Social Security benefits to purchase U.S. savings bonds for minors and incapable adult beneficiaries. If the payee is not a court-appointed fiduciary, the U.S. savings bonds should be registered in one of the following forms:

  • Richard Roe (000-00-0000) a minor for whom Rena Roe is representative payee for Social Security benefits.

  • John Doe (000-00-0000) for whom Henry C. Doe is representative payee for Social Security benefits.

The above forms of registration are designed to protect the interests of the beneficiary and to facilitate payment in the event the beneficiary needs the money prior to the maturity date of the bond.

2. Legally Appointed Guardians or Fiduciaries

A representative payee who is the legally appointed guardian or fiduciary of the beneficiary must also register U.S. savings bonds purchased with Social Security benefits in accordance with applicable regulations of the Treasury Department; e.g., “John Doe, guardian (or conservator, committee, etc.) of the estate of Henry Doe (000-00-0000), a minor (or an incompetent).”

3. Joint Ownership Is Not Permitted

Benefits of two or more beneficiaries may not be commingled to purchase a bond. A bond should not be registered in the name of more than one beneficiary.

4. Actual Purchase

The Department of the Treasury has approved a form of registration which shows the fiduciary relationship between the beneficiary and the representative payee. Only the Federal Reserve Bank or one of its branches and the Office of the Treasurer of the U.S., Securities Division, Washington, D.C. 20220, are empowered to issue bonds in the approved fiduciary forms of registration. However, bonds showing the approved fiduciary form of registration may be obtained by submitting an application for the bond and the necessary remittance to the Federal Reserve Bank or the Treasurer's Office either directly or through a local bank or trust company. Applications may be obtained from most financial institutions.

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GN 00603.030 - U.S. Savings Bonds - 09/04/2002
Batch run: 01/27/2009