Bond Redemption

Shares and Certificates Shares/Certificates Bond Redemption

This document provides technical guidance on using the Bond Redemption feature within the FLEX system, located under the Teller module.

1. Overview

The Bond Redemption function allows credit unions to process the redemption of savings bonds. The FLEX system receives updated redemption tables from the Treasury twice a year to ensure accurate calculations.

2. Accessing Bond Redemption

To access the Bond Redemption screen:

  • Navigate to the FLEX Main Menu.
  • Select Teller.
  • Choose Bond Redemption.

3. How to Redeem a Bond

The process for redeeming a bond differs slightly based on whether the individual is a credit union member or not.

3.1. For Credit Union Members

If the individual redeeming the bond(s) is a credit union member:

  • Enter the member’s account number.
  • Alternatively, use any of the FLEX search methods to locate the member.
  • Once located, the member’s information will automatically populate the relevant fields.

3.2. For Non-Members

If the individual redeeming the bond(s) is not a credit union member:

  • It is necessary to manually enter the following information for tax reporting purposes:
    • SSN
    • Name
    • Address

4. Bond Redemption Screen Fields and Functions

The Bond Redemption screen is divided into several sections:

4.1. Redemption Type & Identification

  • Redemption Type: Typically “Primary Member”.
  • SSN: Social Security Number of the individual redeeming the bond.
  • Name/Address/City/State/Zip/Country: Displays the demographic information of the individual who redeemed the bond. This information is either populated automatically for members or entered manually for non-members.

4.2. Redeem Bond Section

This section is where the details of the bond being redeemed are entered.

  • Distribution Option: Select how the redemption amount will be disbursed.
    • Cash:
      • The bond owner receives cash.
      • The teller’s cash drawer is reduced by this amount.
      • If cash denominations tracking is required, the “Bond Cash Out” screen will appear (see Section 5).
    • Check:
      • The bond owner receives a check for the redeemed amount.
      • The check is automatically included in the Teller’s checks out.
      • This option does not produce a receipt or item detail.
    • Share Credit:
      • The redemption amount is credited to a credit union share account.
      • When selected, the Pay To Account and Suffix fields become active.
      • The savings bond general ledger account will be debited, and the indicated share account will be credited.
  • Face Amount: Enter the monetary face value as shown on the savings bond.
  • Issued Mo/Yr: Enter the month and year the savings bond was issued.
  • Series: Enter the series of the savings bond (e.g., “E” or “EE”).
  • Process Button: Click this button to load bond values from the stored redemption tables based on the entered Face Amount, Issued Date, and Series.
  • Pay To Account/Suffix: (Active only if “Share Credit” is selected as Distribution Option)
    • Select the account and suffix where the redemption amount will be credited.
  • Redemption Amount: Displays the calculated redemption value, including interest, based on the redemption tables.
  • Interest Amount: Displays the calculated interest amount for the bond.
  • Fee Amount: Displays any applicable redemption fee. This fee is configured in “Miscellaneous Information Maintenance” within FLEX Configuration.
  • Net Redeem Amount: Shows the calculated redemption amount minus any applicable fee.
  • IRS Reportable: If checked, indicates that the interest earned on the bond should be reported to the IRS.

4.3. Pending Redemptions Section

This section lists bonds that have been processed and are awaiting final posting.

  • Drop Button: Click to move the currently processed redemption item into the “Pending Redemptions” area.
    • If multiple bonds are being redeemed, enter information for each subsequent bond, process it, and then click “Drop.”
  • Cash Back: Indicates the total cash to be returned to the member when the transaction is posted.
  • Checks Back: Indicates the total checks to be issued when the transaction is posted.
  • Share Credits: Indicates the total share credits to be applied when the transaction is posted.
  • Total Fee: Indicates the total fees for all pending redemptions when the transaction is posted.
  • The table in this section displays details for each pending bond redemption, including:
    • Owner Name
    • Series
    • Issued Date
    • Face Amount
    • Redemption Amount
    • Date
    • Teller
    • Distribution (Dst)

4.4. Post & Clear Buttons

  • Post Button: Finalizes all pending redemptions.
  • Clear Button: Clears all entered information and pending redemptions from the screen.

5. Bond Cash Out Screen (For Cash Distribution)

If “Cash” was selected as the distribution option and the credit union requires tellers to track cash denominations, the “Bond Cash Out” screen will appear.

  • Cash Out: Displays the total amount to be cashed out.
  • Bill Counts: Enter the appropriate denominations for the cash being disbursed.
  • Misc. Amounts: Fields for “Other Cash” and “Other Coin” are available.
  • Running Total: Shows the current total based on entered denominations.
  • Short: Indicates any discrepancy between the “Cash Out” amount and the “Running Total.”
  • OK Button: Click to complete the transaction after entering denominations.
  • Cancel Button: Cancels the cash out process.