Treasury investments computerized

June 22, 1992|By Glenn Burkins | Glenn Burkins,Knight-Ridder News Service

Are you still holding Treasury certificates? If so, Uncle Sam wants them back.

In exchange for your paper, you would get a computerized account to keep track of your Treasury investments, and that could mean fewer headaches for you. The system is part of a new federal program called Smart Exchange.

For years, the government has been trying to computerize its system for handling Treasury notes, bills and bonds. Since 1986, all new Treasuries have been issued in computerized book-entry only.

And, although the Treasury Department no longer will issue paper securities, that still leaves a lot of certificates in circulation. Now the government wants to call those in, too. But conversion is not mandatory.

Here are the advantages of the computerized system:

* Investors no longer would have to clip interest coupons and present them to a commercial bank or Federal Reserve on payment date.

* Interest payments could be deposited directly into a checking or savings account. No more waiting for that check to arrive if your certificates were bought through a brokerage firm.

For more information, call the Smart Exchange hot line at (800) 366-3144.

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