SAVINGS BONDS

Payroll for Paper Bonds

The Payroll Savings Plan for paper savings bonds is inexpensive and easy for your organization to administer. More than 40,000 employers have incorporated the Payroll Savings Plan into their normal payroll procedures and have found the program needs little time and effort to maintain.

You may also want to consider the payroll feature of TreasuryDirect Payroll that allows account holders to use direct deposit deductions to contribute funds to TreasuryDirect.

How it Works

  • Each participating employee signs an authorization card designating the amount to be deducted each pay period.
  • Each employee provides bond registration information.
  • After each pay period, savings bonds are purchased for employees who have accumulated the purchase price by that point.
  • The order for the savings bonds and payment are then submitted to the Federal Reserve, which processes the orders and issues the bonds.

This process continues until an employee gives written notice to cancel the arrangement or leaves your employment.

Working With the Federal Reserve Bank

To start a payroll plan, contact the Treasury Retail Securities site serving your area. When you’re ready to communicate your new plan to employees, use our Communication Materials.

Working With a Payroll Savings Plan Service Provider

If you don’t want to administer a Payroll Savings Plan on your own, you may want to consider working with a financial institution or private company that offers payroll savings bond order services. Learn more about Payroll Saving Plan Service Providers.

Payroll Savings Bond Ordering System

Whether you maintain your own payroll system or use a service provider, there's a convenient data submission method for you. The Federal Reserve provides the Payroll Savings Bond Ordering System (PSBOS) free of charge. This PC-based software package allows you to maintain a payroll savings bond database to prepare your savings bond order.

Submitting Your Order to the FRB Processing Site

We have several ways to submit your order to one of the Federal Reserve's Savings Bond Processing Sites:

  • Provide the information on magnetic tape or cartridge.
  • Use the Payroll Savings Bond Ordering System (PSBOS) to provide the information on disk.
  • Elect to have the Federal Reserve maintain their bond order database rather than maintaining your own in-house. Two Federal Reserve Savings Bond Processing Sites (in Pittsburgh and Minneapolis) offer this service.
  • Pay for your organization's payroll or promotional savings bonds through an Automated Clearing House (ACH) arrangement. Direct charge to your bank's account at the Federal Reserve, or by check. To use ACH or a Reserve Account charge, your organization simply fills out an agreement form and submits it to the Federal Reserve.
  • Transfer the funds to your servicing Reserve Bank through the Federal Reserve’s Fedwire network. This option provides immediate settlement and allows you to send the payment on the date it's due. You can set up an arrangement with a financial institution to send wire transfers. Once your electronic order and payment have been received, the bonds are issued and mailed in 11 business days. The bonds can either be sent directly to the bond owner’s address or can be sent to you in bulk for distribution to your employees.

Guide for Ordering Savings Bonds

The best way to learn about how to order savings bonds for your employees is to read the Guide for Ordering Savings Bonds.

Contact Information

For operational questions on payroll plans, contact the Treasury Retail Securities Site that services your area.

Forms for the Payroll Savings Plan are provided by your processing site or can be downloaded from our Savings Bond Forms area.

Contact Us for help with payroll plans.