Frerichs says Treasury should allow states to return unpaid US savings bonds to owners

SPRINGFIELD, Ill. (WAND) — Illinois Treasurer Michael Frerichs is calling on the U.S. Treasury to make it easier for states to return U.S. savings bonds.

The federal government currently holds more than $30 billion in unpaid savings bonds that date back to the 1940s. Frerichs and Congressman Danny Davis said Thursday more than $1 billion is owed to Illinoisans.

They also noted that Black people represent a high percentage of unclaimed bond holders across the country.

"These savings bonds were purchased because they were a gift to someone in someone's life that was important to them or they were purchased because this was a way that they could invest and grow their money when they were denied access to traditional banking services," Frerichs said.

Congress passed a plan in 2022 to require the U.S. Treasury to provide information to states to help locate these bond owners. However, the Treasury has blocked states from putting this information online to best contact bond owners or beneficiaries.

"I am proud to work with Treasurer Frerichs to help return billions of dollars in missing money to Illinoisans and Americans across the country," Davis said. "Given the tremendous success of state treasurers in returning unclaimed property to owners and beneficiaries, the Treasury Department must do more to work with states to get unclaimed savings bonds to the rightful owners."

Frerichs and Davis stressed that this problem will only get worse because the federal government eliminated paper bonds in 2010. Bonds have been electronic since 2011, meaning there is nothing to secure in a safe deposit box.