Redeeming a US Savings Bond
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The Bond Redemption tab provides access to the Bond Redemption Detail dialog box for redeeming U.S. Savings Bonds. The system calculates the original cost, interest and redemption amount of the bond and updates the Savings Bond Interest field on the Interest/Div/Lt Chrgs/Fees tab. You can disburse the funds by cash, check, transfer to the member's savings or checking accounts or make a loan payment. The Bond Redemption tab is a credit union-defined screen and can actually display different product code options for each teller based on the transaction category. The savings bond product code must always appear on the FROM side of the transaction. You can customize the TO side as desired.
To access the Bond Redemption Detail dialog box, under Financial Activity on the Portico Explorer Bar, click Financial Transactions. The Transactions tab appears on top. Locate the member using the search tool on the top menu bar. Select the down arrow to select the search method, then enter the search criteria. Select the green arrow or press ENTER to locate the member. On the Transactions tab, click the down arrow next to the first drop-down box and select B-Bond Redemption. The Bond Redemption Detail window appears.
How do I? and Field Help
To redeem the savings bonds, specify the series, the denomination, the issued date, and the number of the bonds of the same type and amount. The system automatically calculates and displays the redemption value(s). You can then indicate the disbursal method for the funds.
The Bond Redemption Detail dialog box allows you to specify a maximum of two members. For example, the primary member may receive the funds, but the system will update the second member's Savings Bond Interest field on the Interest/Div/Lt Chrgs/Fees tab for tax purposes. The system automatically updates the Savings Bond Interest field with the correct interest amount for the member. (Both members must have accounts at your credit union.)
You can redeem the following savings bond series using the Bond Redemption dialog box: E, EE, I and S. You cannot redeem series H savings bonds or war bonds.
To redeem a US Savings Bond, complete the following fields:
Click Add to add the bond to the Savings Bond Listing grid. Repeat this process to redeem additional bonds. You can add up to eight separate bonds to the Savings Bond Listing grid.
Select the check box next to a bond in the Savings Bond Listing grid and click Update to change the information. Select the check box next to a bond in the Savings Bond Listing and click Delete to delete the bond.
The Savings Bond Listing grid displays the following information:
| Column Heading | Description |
|---|---|
| untitled | Select the check box next to a bond in the Savings Bond Listing and click Update to change the information or click Delete to delete the bond. |
| Series | The series of U.S. Savings Bond. The
valid options are: Blank - No series entered E - E series (1941 - 06/1980) EE - EE series (01/1980 - Present starting with 50 dollar denominations) I - I series (09/1998 - Present in 50, 75, 100, 500, 1,000 and 5,000 dollar denominations) (starting 05/01/1999 - 200 and 10,000 dollar denominations available) S - S Series (1967 - 1970 in 25, 50, 75, and 100 dollar denominations) |
| Amount | The correct denomination of the U.S. Savings
Bond: 25, 50, 75, 100, 200, 500, 1000, 5000, or 10000. E series (1941 - 06/1980) EE series (01/1980 - Present starting with 50 dollar denominations) I series (09/1998 - Present in 50, 75, 100, 500, 1,000 and 5,000 dollar denominations) (starting 05/01/1999 - 200 and 10,000 dollar denominations available) S Series (1967 - 1970 in 25, 50, 75, and 100 dollar denominations) |
| Month | The month the U.S. Savings Bond was issued. |
| Year | The year the U.S. Savings Bond was
issued. E series (1941 - 06/1980) EE series (01/1980 - Present) I series (09/1998 - Present) S Series (1967 - 1970) |
| Number | The number of bonds presented by for redemption. |
| 2nd | If Y, the system will credit the interest on a redeemed U.S. Savings Bond to a second member. The second member's account number appears in the Second Member Number field. Portico will add the interest to the 2nd member's Savings Bond Interest field on the Interest/Div/Lt Chrgs/Fees tab. |
| Original Cost | The original cost of the U.S. Savings Bond offered for redemption. Portico automatically calculates the original cost based on the series, denomination, and issue date. |
| Interest | The total interest earned on the U.S. Savings Bonds offered for redemption. Portico automatically calculates this amount based on the series, denomination, issue date, and number of bonds. |
| Redemption | The redemption value of the U.S. Savings Bonds offered for redemption. Portico automatically calculates this amount by totaling the original cost of the bonds and the interest earned. |
| Int. Per Bond | The interest earned on a single U.S. Savings Bonds offered for redemption. Portico automatically calculates this amount based on the series, denomination, issue date, and number of bonds. |
| Value Per Bond | The redemption value of a single U.S. Savings Bond for the specified series and denomination. Portico automatically calculates this amount by totaling the original cost of the bond and the interest earned. When more than one bond of the same series and denomination is offered for redemption, this amount will be the redemption value for a single bond. Length: 10 numeric including decimal |
Portico automatically calculates the values in the Redemption Summary group box.
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The total number of U.S. Savings Bonds offered for redemption. |
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The total original cost of the U.S. Savings Bonds offered for redemption. |
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The amount of savings bond interest earned by the member that will be added to the Savings Bond Interest field on the Interest/Div/Lt Chrgs/Fees tab. If the Credit Interest to 2nd Member check box is selected, this field will be blank. |
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The total amount of savings bond interest that will be distributed to the second member. Portico will add the interest to the 2nd member's Savings Bond Interest field on the Interest/Div/Lt Chrgs/Fees tab. |
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The total redemption value of the U.S. Savings Bonds offered for redemption. Portico automatically calculates this amount by totaling the original cost of the bonds and the interest earned. |
To redeem a US Savings Bond for a non-member, enter 0 for the member number. Then, add the bond(s) to the Savings Bond Listing grid. In the Non-Member Information group box, you will enter information regarding the non-member:
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Enter the non-member's taxpayer ID number (TIN). This can be the Social Security Number (SSN), Employer Identification Number (EIN), or Individual Taxpayer Identification Number (ITIN). Length: 9 numeric |
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Enter the name of the non-member. Length: 23 alphanumeric |
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Enter line 1 of the non-member’s address. Length: 24 alphanumeric |
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Enter line 2 of the non-member's address. If the Address is Foreign check box is selected, the foreign city's name must reside in the Address 2 field. Length: 24 alphanumeric |
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Enter the city where the individual resides. If the Address is Foreign check box is selected, the foreign country's name MUST reside in this field. In the State field, enter the foreign country code. For Canada, enter the province code in the State field. Length: 18 alphanumeric |
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Click the down arrow to select the correct state abbreviation from the drop-down list. If the Address is Foreign check box is checked, enter the foreign country code in the State field. For Canada, enter the province code in the State field. |
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Select this check box if the address is foreign. If the Address is Foreign check box is selected, the foreign city's name must reside in the Address 2 field and the foreign country's name must reside in the City field. In the State field, enter the foreign country code. For Canada, enter the province code in the State field. |
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The postal ZIP Code for the address listed. For domestic addresses, the ZIP code must be either 5 or 9 digits. For foreign addresses, the ZIP code can be up to 10 characters. If the Address is Foreign check box is not selected:
If the Address is Foreign check box is selected:
Length: 9 numeric (10 alphanumeric if the Address is Foreign check box is selected.) |
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Enter credit union-defined information or comments about the non-member. Length: 30 alphanumeric |
The Non-Member Interest field lists the total interest earned on the U.S. Savings Bonds offered for redemption. Portico automatically calculates this amount based on the series, denomination, issue date, and number of bonds.
Click Cancel to reject your changes and close the dialog box.
Click Redeem to proceed with the bond redemption transaction. The system will automatically calculate the original cost, interest due the member, and the redemption amount of each bond. The Bond Redemption tab appears.
On the Transactions - Bond Redemption tab, click the Effective Date down arrow to select the effective date of the transaction from the pop-up calendar or enter the date in MM/DD/YYYY format. In the To Product column, select the product the funds are going to (cash disbursed, share deposit, or loan payment). Then, enter the amount of each product type in the To Amount column. In the To Function column, enter the IRA deposit code or loan note number corresponding with the To Product type. Then, click Submit to complete the transaction.
The batch number, batch sequence, transaction amount, cash received and cash disbursed for the transaction prints on the last three lines of the member's receipt. You must use the Product Code Information window to change the description or default values of a product code. You must perform the Transaction Definition window to add, change, or delete product codes for the Bond Redemption tab.
If your credit union uses savings bond capture through IMM Teller Item Capture, a Scan button and Transaction ID field will appear on the Bond Redemption Detail dialog box.
On the Bond Redemption Detail dialog box, specify the series, denomination, issue month and year, and number of the bonds of the same type and amount. Then, click Add. Portico automatically calculates and displays the redemption value(s). You can then click the Scan button or press / on the keyboard to launch the IMM Teller Item Capture application and scan the bonds.
On the IMM Teller Capture screen, you will need to manually enter the redemption value from Portico, specify type B for bond, and enter a routing number of 000090007. Click Done when the transaction is in balance to close the Teller Capture screen. On the Bond Redemption Detail dialog box, the Scan button will change to an Edit Scan button. You can click Edit Scan to display the Teller Capture screen for the transaction and make any adjustments. The Transaction ID field displays a unique reference ID based on the year, month, day, hour, minute, second, millisecond, and branch number. For example, 2016010715272206003 indicates that the bonds were scanned on January 7, 2016 at 3:27:22:06PM at branch 003. The transaction ID is used to identify the scanned bonds in IMM Teller Item Capture. Complete the bond redemption transaction to disburse the funds. When you click Submit, the transaction will be posted. Portico will update the Bond Redemption Journal, send the savings bond images to the Member Financial Transactions repository in Nautilus Essentials, and instruct IMM Teller Item Capture to add the savings bond to the credit union's Check21 cash letter. If you click Submit without scanning the bonds, an error message will appear. You can view the savings bond images from a new image icon on the Bond Redemption Journal.
The general ledger effects of the Bond Redemption tab depend on the combination of From and To product codes and the master type associated with the product code.
| From Side | |
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| Master Type | GL Effect |
| CBBC | Debit Product Code GL Credit 739200 |
| CC | Debit Product Code GL Credit 739200 |
| GO | Debit Product Code GL Credit 739200 |
| MS | Debit Share Type GL Credit 739200 |
| To Side | |
|---|---|
| Master Type | GL Effect |
| CB | Debit 739200 Credit Product Code GL |
| CBBC | Debit 739200 Credit Product Code GL |
| CC | Debit 739200 Credit Product Code GL |
| GI | Debit 739200 Credit Product Code GL |
| GK | Debit 739200 Credit Product Code GL |
| ML | Debit 739200 Credit Loan Type GL |
| MS | Debit 739200 Credit Share Type GL |
Bond Redemption Report 845
The teller balancing effects are as follows:
- Increases the Teller Batch Total field on the Balancing and Close tab by the amount of the transaction
- Increases the Amount field on the Balancing and Close tab by the amount of the transaction for any product code with Display and Balance in the Balancing Report field on the Product Code Information window
- Increases the Amount field on the Balancing and Close tab by the amount of the transaction for any product code with Display Only in the Balancing Report field on the Product Code Information window
On Teller Administration Expanded, the Bond Redemption tab updates the Balancing and Close tab based on the master type associated with the product code:
| From Side | |
|---|---|
| Master Type | Balancing and Close Effect |
| CBBC | Increase Bonds for Deposit |
| CC | Increase Cash Received |
| GO | None |
| MS | Increase Cash Received |
| To Side | |
|---|---|
| Master Type | Balancing and Close Effect |
| CB | None |
| CBBC | None |
| CC | Increase Cash Disbursed |
| GI | None |
| GK | None |
| ML | None |
| MS | None |
On Teller Administration Basic, the Bond Redemption tab updates the Balancing and Close tab based on the master type associated with the product code:
| To Side | |
|---|---|
| Master Type | Balancing and Close Effect |
| CC | Update Other Disbursements Update Cash Disbursed |
| GI | Update Transfers/JV |
| GK | Update Other Disbursements Update Cash Disbursed |
| GO | Update Transfers/JV |
| MI | Update Transfers/JV |
| ML | Update Transfers/JV |
| MS | Update Transfers/JV |
Correction Procedures:
For same-day correction, perform the Reversals - Same-Day Reversals tab.
If you added a new share draft account when performing the Bond Redemption tab and then wish to reverse the transaction, you must perform the following steps in the order shown:
- Use the Reversals - Same-Day Reversals tab to reverse transaction code 244.
- Use the Reversals - Same-Day Reversals tab to reverse transaction code ALD.
If you do not perform the reversals in this order, the message SUBSEQUENT ACTIVITY FOR THIS ACCOUNT MUST BE REVERSED appears.
For a prior-day correction, based on the product codes, perform a combination of the following transactions:
- Adjustments – Share Deposit from General Ledger tab
- Adjustments – Share Withdrawal to General Ledger tab
- Adjustments – Loan Payment from General Ledger tab
- Adjustments – Loan Advance tab
- Basic Journal Voucher window
Correct the Savings Bond Interest field on the Dividends, Interest, Late Charge and Fees Maintenance dialog box.
Teller Administration Expanded does not allow you to maintain the Savings Bond Interest field on the Dividends, Interest, Late Charge and Fees Maintenance dialog box. Any changes to the Savings Bond Interest field must be made using a bond interest product code. The value AI must appear in the ID (process ID) field on the Transaction Definition window for the bond interest product code.
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