Treasury-Linked Savings Accounts (TLSAs) : A Framework for Linking Public Debt to Household Savings and Banking

This white paper proposes the creation of a novel financial product: a bank-managed Treasury-linked savings account. Designed to function as a familiar deposit account offered by commercial banks, these accounts would pool retail customer savings for investment in U.S. Treasury securities. This model aims to broaden the government's investor base, enhance debt servicing stability, and provide taxpayers a direct return on government borrowing, while offering a secure and convenient savings option. This paper outlines the structure, benefits, challenges, and regulatory considerations for implementing such a program, drawing parallels with historical postal savings systems.