SAVINGS BONDS

EZ Clear - Redemption Fee Payments

Redemption fee payments (commission) for redeeming savings bonds are paid to separately sorted Cash Letter depositors only. Redemption fee payments will be made to the financial institution matching the Routing/Transit number on the EZ Clear Cash Letter.

  • Fees are paid on a MONTHLY basis to each eligible financial institution (not each paying agent or branch office) as one payment for all bonds processed under one Routing/Transit number.
  • Redemption fee payment credits are sent through the Automated Clearing House (ACH) using the information designated in Section 2 of the EZ Clear enrollment form.
  • The ACH information must include a valid Routing/Transit number of an institution capable of processing ACH transactions and a Demand Deposit/Share Draft account number or General Ledger Account (GL) for automatic posting of the fees credit.
  • The redemption fee payment will be an ACH “demand credit” which uses a Prearranged Payment Deposit format for Demand Deposit/Share Draft accounts and Cash Concentration Disbursement for GL accounts.

If the receiving ACH institution uses a 2005 addendum record option when receiving ACH transactions, the month and number of bonds the commission payment shows will be noted on an ACH activity report. The effective date of payment will be the last business day of each month for the previous month's activity.

Pre-notification

Before receiving the first redemption fee payment, an ACH pre-notification letter will be sent to the contact listed on the EZ Clear Enrollment Form.

  • A $0.00 pre-notification entry will be functioned to the account number designated in Section 2 of the EZ Clear Enrollment Form.
  • The contact should verify that the $0.00 pre-notification entry was received.

NOTE: An ACH pre-notification letter is also sent when the ACH information on the EZ Clear enrollment form is updated. It is critical that valid ACH information is provided to the Central Processing Site to reduce the chance of delaying the crediting of redemption fee payments. Please provide a copy of the ACH pre-notification letter to your internal area or the internal area of your correspondent institution.

For questions about ACH redemption fee payments, please contact the EZ Clear Central Processing Site using the toll-free number, 1-800-245-2804. Choose option #4, Financial Institutions, and then #4 EZ Clear Representative.

ACH Changes or Corrections

If your institution is receiving monthly redemption commission from EZ Clear, either through a Demand Deposit or GL account, and would like to change the way commission is posted, the following choices are available:

  • Pre-notification Letter
  • Letter of Correspondence
  • ACH Notification of Change (NOC)

Changes can be written directly on a pre-notification Letter. A letter of correspondence should outline the current and new ACH information. Either one of these documents can be mailed to:

EZ Clear Adjustments
FRB Minneapolis
P.O. Box 9109
Minneapolis, MN 55480-9109

ACH Notification of Change (NOC)

The NOC is an electronic correction for ACH changes and can be sent by your ACH area or ACH provider. A NOC can be sent using EZ Clear’s pre-notification or Redemption Commission payment entry. The following Correction Codes can be used:

  • C01 – Incorrect Account Number (DDA or GL account number)
  • C02 – Incorrect Routing Number (ACH routing number)
  • C03 – Incorrect Routing Number & Account Number
  • C05 – Incorrect Transaction Code (DDA or GL Tran Code)
  • C06 – Incorrect Account Number & Tran Code
  • C07 – Incorrect Routing Number, Account Number & Tran Code

NOTE: If your institution’s name needs to be changed, or other information on file at FRB Minneapolis (for example, address, contact, phone number, and the like), you should use a pre-notification letter or letter of correspondence.

Questions about this ACH service change can be directed to EZ Clear's toll-free number 1-800-245-2804. Choose option #4, Financial Institutions, and then #4 EZ Clear Representative.