Glossary
Accrual-Basis Tax Reporting - Reporting the increase in redemption value each year for all securities owned, those subsequently acquired, and for any other obligations purchased on a discount basis.
Accrued Interest - The amount of interest a Bill, Note, Bond, or TIPS earns before it is actually issued in your account. For savings bonds, this is the amount of interest earned from the issue date to a specific point in time.
Auction - The public sale of Treasury securities.
Automated Clearing House (ACH) - A secure funds transfer system governed by the rules of the National Automated Clearing House Association (NACHA) that connects participating financial institutions. The ACH network acts as the central clearing facility for Electronic Fund Transfer (EFT) transactions.
Bank - A depository financial institution such as a bank or credit union.
Bank Account Type - Indicates the type of bank account (e.g., checking or savings) used when a payment or debit is processed in TreasuryDirect.
Beneficiary - An individual designated by name who will become the owner only upon the death of the owner of the security. Bonds recorded with the name of a Beneficiary are registered, for example; "John Smith Payable on Death (POD) to Jane Smith." "Jane Smith" is the Beneficiary. "John Smith" is the owner and may grant View rights to the Beneficiary.
Bill (Treasury Bill, T-Bill) - U. S. Treasury Bills are a type of short-term security of one year or less, issued at a discount. Minimum purchase is $100 with multiples sold in the same increment. The maximum amount for a noncompetitive purchase is $5 million.
Bond (Treasury Bond, T-Bond) - U.S. Treasury Bonds are a type of long-term fixed-principal security with a maturity of more than 10 years. After purchase, interest payments are paid every six months until maturity, when the principal is paid. The interest rate is determined at the time of auction. Minimum purchase is $100 with multiples sold in the same increment. The maximum amount for a noncompetitive purchase is $5 million.
Book-Entry Security - Treasury security maintained by the U.S. Department of the Treasury at the Bureau of the Public Debt in electronic or "paperless" form as a computer record.
Business Day - A day featured on the Federal Business Calendar in which funds may be settled through ACH.
Called Bonds - Bonds issued prior to 1985 that are subject to call by the Treasury Department. When Treasury exercises its option to call a Bond, it intervenes prior to the Bond's original maturity date and redeems the Bond. Redemption proceeds are deposited into your selected payment destination.
Cash-Basis Tax Reporting - Reporting the increase in redemption value of securities for the year of final maturity, redemption, or other disposition, whichever is earlier.
Cash Management Bill - Special Bills offered occasionally as Treasury borrowing needs warrant. Cash Management Bills may not be purchased in TreasuryDirect, however, you may transfer eligible CUSIPs into your account after purchase. Eligible CUSIPs include those offered for purchase in TreasuryDirect originally as 13, 26, or 52-Week Bills.
Closed Book Period - Four business days prior to a scheduled interest and/or maturity payment, TreasuryDirect "locks" the applicable security so we can schedule your upcoming payment(s). This rule applies to interest and maturity payments for Bills, Notes, Bonds, and TIPS. TreasuryDirect will not allow changes to Registration, Payment Destination, or View/Transact Rights during this timeframe. Additionally, Internal and External Transfers of marketable securities are prohibited during the Closed Book Period. Any online transactions that are scheduled but not processed prior to the Closed Book Period will be canceled. Transactions requiring submission of a form will be held for processing when the Closed Book Period ends. SellDirect requests scheduled but not processed prior to the securities entering the Closed Book Period due to a scheduled interest payment will be delayed. SellDirect requests scheduled but not processed prior to the securities entering the Closed Book Period due to a maturity payment will be canceled.
Competitive Bidding - In a Treasury auction, a competitive bid specifies the rate or yield expected for a security. Bids lower than the accepted rate receive the accepted rate. Bids higher than the accepted rate are rejected. Competitive bidding is only available in the Commercial Book-Entry System.
Confirmation Number - An automatically generated number created when certain transactions are made in TreasuryDirect. Each number is five digits, the first being a letter designation for the transaction type. The table below shows the beginning letter for each confirmation number type and a description of the transaction it identifies.
| Confirmation Number Key | ||
|---|---|---|
| Confirmation Number Begins with Letter |
Description | Example |
| D | Gift Delivery | DAAAI |
| E | Zero-Percent C of I Purchase | EAAB2 |
| I | Security Issue | IAAC1 |
| K | External Security Transfer | KAAA8 |
| M | Zero-Percent C of I Issue | MAA12 |
| N | Non-Deliverable Matured Gift Proceeds | NAAA7 |
| P | Gift Proceeds Delivery | PAAB2 |
| Q | Redirected Undelivered Zero-Percent C of I Payment | QAAC9 |
| R | Security Redemption or Maturity Payment | RAALE |
| S | Interest Payment | SAAAB |
| T | Security Transfer | TAACB |
| U | Redirected Undelivered Security Redemption Payment | UAAA1 |
| V | Zero-Percent C of I De-Linked | VAAB3 |
| W | Zero-Percent C of I Redemption | WAAI4 |
| X | Security De-Linked | XAAB2 |
| Z | Security Sold | ZAA10 |
Conversion - When you trade in your paper securities for an electronic version in your account, you have converted them using SmartExchange and your Conversion Linked Account.
Conversion Account - This is an account you establish so you may convert your paper Series E, EE, and I Bonds to electronic securities in your TreasuryDirect account. You may convert your paper savings bonds through SmartExchange when the link “Establish a Conversion Linked Account” appears in the “Manage My Linked Accounts” section on the Manage Direct page in your primary account.
Co-Owner - A person named in the registration of a Treasury security as the second-named registrant with the names connected by "OR." The first-named registrant and the second-named registrant have equal rights to the security. This form of registration only exists in TreasuryDirect when paper bonds are converted into electronic form.
CPI-U - Consumer Price Index for All Urban Consumers is a measurement of the average change over time in prices paid by consumers for consumer goods and services, maintained by the Bureau of Labor Statistics of the U.S. Department of Labor. We use this index to calculate payments for Inflation-Indexed securities.
Current Value - A security's value based upon its principal amount and any accrued interest, at a specific point in time.
CUSIP (Committee for Uniform Security Identification Procedures) - This is a number the Treasury uses to identify securities.
Custom Account - This is a flexible account you may establish to meet your specific financial goals. You can even create a customized name such as "Vacation Fund" for the account. We offer the same convenient capabilities as in your Primary TreasuryDirect account.
Dated Date - The officially established date for issuing a Bill, Note, Bond, or TIPS. Interest on a Treasury security begins earning on this date. This is usually the same date as the Issue Date, however, if the Dated Date falls on a weekend or holiday, the security won't issue until the following business day.
De-Linking - The only Linked account that TreasuryDirect customers can de-link is a Minor account. De-linking refers to moving the Linked account's securities to a Primary TreasuryDirect account. When the child reaches age 18 and establishes a TreasuryDirect account, you may de-link the securities into the new Primary account.
Delivery - The moving of a gift security from the account of the purchaser to the account of the recipient. A delivery must be at least $25.00. For a partial delivery, the remaining current value of the security in the account may not be less than $25.00. The gift delivery amount consists of principal plus a proportionate amount of interest.
Discount - The amount by which the auction price of a Bill, Note, Bond, or TIPS is lower than its face value.
E Beneficiary - An individual designated by name who will become the owner only upon the death of the owner of the Series E security. Bonds recorded with the name of a Beneficiary are registered, for example; "John Smith Payable on Death (POD) to Jane Smith." "Jane Smith" is the Beneficiary. "John Smith" is the owner and may grant View rights to the Beneficiary. This form of registration only exists in TreasuryDirect when paper bonds are converted into electronic form.
E Bond - Series E Bonds are a type of U.S. Savings Bond previously offered by the U.S. Department of the Treasury. An E Bond is an accrual-type security, with interest added to the bond on the first day of each six-month accrual cycle and paid upon redemption. E Bonds earn interest and mature in different cycles depending upon the original issue date. E bonds that are still earning interest reach final maturity 30 years from their original issue date. You may hold E Bonds in your TreasuryDirect account if paper securities have been converted to electronic form; however, they are not available for purchase.
EE Bond - Series EE Bonds are a type of U.S. Savings Bond offered by the U.S. Department of the Treasury. An EE Bond is an accrual-type security; meaning interest is added to the bond monthly or semiannually (depending upon the original issue date) and paid upon redemption. The interest rate of an EE Bond depends upon the original issue date. For EE Bonds issued May 1, 2005, and later, a fixed interest rate is applied. These bonds increase in value every month, and interest is compounded semiannually. A 3-month interest penalty will apply to bonds cashed before five years. Some older EE Bonds earn interest based on 5-year Treasury security yields or at a guaranteed minimum and all EE bonds earn interest for up to 30 years from their original issue date. For EE Bonds converted to electronic form, the percentage rate varies depending upon the original issue date.
Electronic Deposit - An electronic credit transaction initiated through electronic means (i.e., phone, computer network) by your financial institution or payroll office.
Electronic Fund Transfer (EFT) - An electronic debit or credit transaction initiated through electronic means (i.e., phone, computer network).
External Transfer - Moving the partial or full amount of a marketable security from TreasuryDirect to a bank or broker. When requesting a partial External Transfer, you must transfer a minimum of $100 while leaving at least $100 of the current value of the security. This action automatically changes the ownership of the security. We recommend you contact the bank or broker for the correct routing number, bank name, and special handling instructions before requesting an External Transfer.
Funding Options - TreasuryDirect offers you flexible funding options for all your security purchases. Automated Clearing House (ACH) debits and credits serve as the primary mechanism for funding your account. You may instruct us to debit your bank account for a security purchase or you may establish a payroll deduction that credits your account.
Gift Proceeds - If you have converted a paper bond with a gift form of registration and the bond subsequently matures, the Gift Proceeds are held in your TreasuryDirect account until delivery to the intended recipient. You must deliver the full amount of the matured Gift Proceeds. When the proceeds are delivered, a Zero-Percent C of I is purchased in the recipient's account.
Grantee - A TreasuryDirect account holder may be granted View or Transact rights by a first-named registrant (or grantor) based on the type of security registration.
Grantor - As the first-named registrant, a TreasuryDirect account holder (or grantor) may grant View or Transact rights to a grantee based on the type of security registration.
Hold Code - A designation that can be placed on an account by TreasuryDirect Customer Service to prohibit certain transactions, or by an account owner to prohibit all transactions and access to an account.
I Bond - I Bonds are a type of U.S. Savings Bond offered by the U.S. Department of the Treasury. An I Bond is an accrual-type security, meaning interest is added to the bond monthly and paid when the bond is redeemed. The I Bond interest rate is based upon a combination of a fixed rate of return and a variable semiannual rate. I Bonds grow in value with inflation-indexed earnings for up to 30 years.
Incoming External Transfer - Moving a marketable security from a bank, broker, or Legacy Treasury Direct into your online TreasuryDirect account. For more information, see Learn more about Transfers.
Inflation-Indexed Security - A security that earns interest based in part on the percentage change in the Consumer Price Index (CPI-U).
Interest - Compensation paid for the use of money at a specified rate.
Interest Rate (E Bond) - E Bonds earn interest depending upon their original issue date, (see E Bond above). E bonds that are still earning interest reach final maturity 30 years from their original issue date. (See How is the interest rate of an E Bond determined?)
Interest Rate (EE Bond) - The interest rate of an EE Bond depends upon the original issue date, (see EE Bond above). For EE Bonds issued May 1, 2005, and later, a fixed interest rate is applied. Some older EE Bonds earn interest based on 5-year Treasury security yields or at a guaranteed minimum. (See How is the interest rate of an EE Bond determined?)
Interest Rate (I Bond) - The interest rate for an I Bond is based upon a combination of two separate rates: a fixed rate of return and a variable semiannual inflation rate. The fixed rate remains the same throughout the life of the I Bond, while the semiannual inflation rate can vary every six months. (See How is the interest rate of an I Bond determined?)
Internal Transfer - Moving the partial or full amount of a marketable security from one TreasuryDirect account to another. When requesting a partial Internal Transfer, you must transfer a minimum of $100 while leaving at least $100 of the current value of the security. This action automatically changes the ownership of the security.
Investing Maturing Proceeds - Using funds from a maturing Bill, Note, Bond, or TIPS to purchase a new security. (See Learn more about Reinvesting Maturing Proceeds.)
Issue Date - The date a security is issued in your TreasuryDirect account. For savings bonds, this is the first day of the month in which the Treasury receives funds for the purchase of the security. For example, if you purchased a savings bond on July 10, the issue date would be July 1. Funds must be received prior to Midnight Eastern Time to be credited for a particular day. For marketable securities, this is the actual date the security is issued in your account. This date is used for determining when the security is eligible for redemption (savings bonds), the accrual interest amount designated, and when it reaches maturity. The issue date is also used to determine the Original Issue Holding Period for marketable securities purchased in TreasuryDirect.
Linked Accounts - TreasuryDirect Linked Accounts allow you the flexibility of managing a securities portfolio customized to your needs in an account that is "linked" to your TreasuryDirect account. Open a Minor or Custom account, or use the Conversion account to convert your paper securities into electronic form. The only way to access Linked accounts is through your Primary TreasuryDirect account. Holdings for each Linked account are kept separately from your Primary TreasuryDirect account.
Manifest - A detailed list of securities created through SmartExchange. The manifest is mailed with the corresponding paper bonds for conversion into electronic form in a TreasuryDirect account.
Marketable Securities - Treasury Bills, Notes, Bonds, and Treasury Inflation-Protected Securities (TIPS) that may be purchased, held, transferred, or sold in the secondary securities market through your TreasuryDirect account.
Maturing Proceeds - Funds from a maturing Bill, Note, Bond, or TIPS. (See Learn more about Reinvesting Maturing Proceeds.)
Maturity - A security has reached final maturity when it is no longer earning interest on the principal investment.
Maturity Date - The maturity date is the date when the security stops earning interest.
Minor Account - This is a custodial account that a parent, natural guardian, or person providing chief support establishes for a child under the age of 18. You may purchase, redeem, receive gift deliveries, and perform other transactions within the account on behalf of the minor. When the child reaches age 18 and establishes a TreasuryDirect account, you may de-link the securities into the child's account. De-linking refers to moving the Linked account's securities to a Primary TreasuryDirect account. If you choose to continue to maintain the account once the minor reaches age 18, you are restricted from performing nearly all transactions, however, you can still purchase securities on the child's behalf.
Noncompetitive Bidding - In a Treasury auction, a noncompetitive bid guarantees you'll get the full amount of the security you purchase at the rate or yield determined during the auction by competitive bidding.
Note (Treasury Note, T-Note) - U.S. Treasury Notes are a type of medium-term security with a maturity of 10 years or less. Notes are fixed-principal securities. After purchase, interest payments are paid to your selected payment destination every six months until maturity, when the principal is paid. The interest rate is determined at the time of auction. Minimum purchase is $100 with multiples sold in the same increment. The maximum amount for a noncompetitive purchase is $5 million.
Original Issue Holding Period - TreasuryDirect requires Bills, Notes, Bonds, and TIPS originally issued in an account be held for 45 days before they may be internally or externally transferred or sold through SellDirect. This rule doesn't apply to securities transferred into your account from an outside bank or broker.
Par - The principal amount of a security.
Payment Destination - The destination selected to use for maturity, interest, and/or redemption payments. This may be a financial institution or your Zero-Percent C of I.
Pending Transaction - Any transaction waiting for final processing; for example, scheduled future purchases. While pending, most transactions may be deleted in TreasuryDirect. A pending redemption from a Zero-Percent C of I may not be deleted.
Premium - The amount by which the auction price of a Note or Bond is higher than its face value.
Primary Account - A Primary account is your personal account you open in TreasuryDirect. Once a Primary account is opened, you may establish Minor or Custom Linked accounts that are accessed only from your Primary account.
Primary Owner - A Primary Owner type of registration denotes the first-named registrant in the registration of a security held in TreasuryDirect (e.g., registered "John Doe SSN 123-45-6789 WITH Joseph Doe SSN 987-65-4321"). In this example, John Doe is the Primary Owner, and may grant View or Transact rights to the second-named registrant, Joseph Doe.
Principal Amount - Principal amount is the same as the purchase amount of a security.
Purchase Express - Purchase Express allows you to quickly purchase securities using your preferred registration and primary bank information or debit your bank account to fund your Zero-Percent C of I. Simply select the Product Type, fill in the Amount, click Buy Now, and TreasuryDirect does the rest. The Purchase Express Review page shows all of the details of your purchase. Just click Submit, and you're done. If you change your mind, select Cancel, or go to Current Holdings > Pending Transactions to delete your transaction. Use the Buy Direct tab to purchase securities with a different registration or another financial institution. You may purchase up to $5,000 of each savings security type - EE or I bonds - per person each calendar year. You may purchase up to $5 million of each marketable security type - Bills, Notes, Bonds, or TIPS - in a single auction.
Purchase Limitations - You may purchase up to $5,000 of each savings security type - EE or I bonds - per person each calendar year. The purchase amount of the securities you transfer, deliver as gifts, or de-link to another TreasuryDirect account holder is applied to the recipient's annual purchase limitation in the year the transaction occurs. You may purchase up to $5 million of each marketable security type/term - Bills, Notes, Bonds, and TIPS - in a single auction when you bid noncompetitively through your TreasuryDirect account. These purchase limitations do not apply to marketable purchases when you make purchases using your Zero-Percent C of I as the source of funds.
Purchase Schedule - A purchase schedule is established by setting a recurring security purchase (i.e., monthly, quarterly, or individually designated dates) within TreasuryDirect. The purchase schedule identifier is designated by one to three characters assigned at purchase confirmation and shared by all securities within the schedule (i.e., ABC).
Rate - The amount of return on an investment in a Treasury security.
Recipient - The receiver of a gift delivery, transfer, and/or de-linked securities.
Redemption - The payment of principal and accrued interest on a security at maturity, or at the option of the owner, prior to maturity. The owner of an E, EE, or I Bond held in TreasuryDirect may redeem all principal and interest for full redemption. A partial redemption allows the owner to redeem a portion of the principal and a proportionate amount of interest.
Redemption Value - The principal and accrued interest, or a portion of principal plus a proportionate amount of accrued interest, as of the date of redemption.
Registration - The name and Social Security Number (SSN) of the person(s) associated with a security and maintained on record. An account registration list displays all registrations the account holder has entered. The owner may edit, add, or delete registrations from the list at any time.
Reinvesting Maturing Proceeds - Investing funds from a maturing Bill, Note, Bond, or TIPS using Zero-Percent C of I as the source of funds to purchase a new security. (See Learn more about Reinvesting Maturing Proceeds.)
Request Date - The date a transaction is entered by an account holder. This date does not necessarily correspond with the date a transaction is actually processed based on business days, holidays, and scheduled times for transaction processing.
Return Code - An identifier resulting from the return of information by your designated financial institution. Return codes may limit your ability to conduct future transactions. If a bank listing has a Return Code, the code will be removed when we process your request to edit the bank routing number, account number, or account type.
Routing Number - The nine-digit number associated with your financial institution (a.k.a. ABA#). The number is usually located in the bottom left corner of a check. If you are unsure of the number to use, please verify the correct number with your bank beforehand.
Second-Named Registrant - The second person named in the registration of a security held in TreasuryDirect. In the example, "John Doe SSN 123-45-6789 WITH Joseph Doe SSN 987-65-4321," Joseph Doe is the second-named registrant.
Secure Sockets Layer (SSL) - The industry-standard protocol for securing sensitive data, such as payment information, that is being transmitted over the Internet. SSL works by using a public key to encrypt data that is transferred.
Security or Treasury Security - An obligation issued by the U.S. Treasury that may be held in a TreasuryDirect account.
SellDirect - The secondary market sale process used by TreasuryDirect account holders who wish to sell a Bill, Note, Bond, or TIPS. TreasuryDirect submits all sale requests through the Federal Reserve Bank (FRB) of Chicago. FRB Chicago obtains price quotes from at least three government security dealers and sells to the one with the highest price quote. Your sale amount, minus the transaction fee, is deposited in your selected payment destination account the day following the sale. (See Learn more about SellDirect.)
Social Security Number (SSN) - The identifying number required on tax returns and other documents submitted to the Internal Revenue Service by an individual. An SSN is composed of nine digits separated by two hyphens; for example, 123-45-6789.
Sole Owner - A person named in the registration of a Treasury security without a Beneficiary or second-named registrant. The Sole Owner may grant View rights to any TreasuryDirect account holder.
Taxpayer Identification Number (TIN) - The TIN is the identifying numbers required on tax returns and other documents submitted to the Internal Revenue Service; that is, an individual's Social Security Number (SSN) or an Employer Identification Number (EIN). A SSN is composed of nine digits separated by two hyphens, for example, 123-45-6789. An EIN is composed of nine digits separated by one hyphen, for example, 12-3456789. The hyphens are an essential part of the numbers.
Term - The time period from issue date to final maturity during which a security earns interest.
Trace Number - A tracking number assigned by the Electronic Fund Transfer (EFT) process to identify individual money transfer transactions. These numbers may assist you when contacting your financial institution to resolve any existing account difficulties.
Transact Rights - On a security with Primary Owner registration, the first-named registrant (or grantor) may grant Transact rights to the second-named registrant (or grantee). The grantor may edit or delete these rights at any time. Transact rights do NOT apply to the Zero-Percent C of I security. Transact rights allow the grantee of a savings bond to view and redeem the security. Transact rights allow the grantee of a marketable security to transfer or sell the security, as well as change the maturity and/or interest payment destination. For tax reporting information, see Learn more about Tax Reporting.
Transfer (Savings Bonds) - Moving the partial or full amount of a security, consisting of principal plus a proportionate amount of interest, from one TreasuryDirect account to another. When making a partial transfer, you must transfer a minimum of $25.00 while leaving at least $25.00 of current value in the security. This action automatically changes the ownership of the security.
TreasuryDirect Account - Your personal online account where you can purchase U.S. Treasury securities via the Internet.
Treasury Inflation-Protected Security (TIPS, Treasury Inflation-Indexed Security) - TIPS are a type of medium to long-term security whose term is at least 5 years and whose principal is indexed semi-annually to the Consumer Price Index - Urban (CPI-U). After purchase, interest payments are paid to your selected payment destination every six months until maturity. Because the interest rate is applied to the adjusted principal, interest payments can vary in amount from one period to the next. If inflation occurs, the interest payment increases. In the event of deflation, the interest payment decreases. At the maturity of a TIPS, you receive the adjusted principal or the original principal, whichever is greater. These provisions protect you against inflation and deflation. Minimum purchase is $100 with multiples sold in the same increment. The maximum amount for a noncompetitive purchase is $5 million.
Undelivered Payment - A payment that cannot be made to your designated financial institution and is returned to the Bureau of the Public Debt. After September 2005, TreasuryDirect will direct all undeliverable payments to your Zero-Percent C of I.
View Rights - On a security with Sole Owner registration, the first-named registrant (or grantor) may grant View rights to any individual (or grantee) with a TreasuryDirect account. On a security with Beneficiary registration, the first-named registrant may only grant View rights to the second-named registrant. On a security with Primary Owner registration, the first-named registrant may only grant View rights to the second-named registrant. The grantor may edit or delete any of these rights at any time. View rights do NOT apply to the Zero-Percent C of I security, and certain restrictions apply for converted securities.
Withholding Rate - The percentage of interest being distributed to the Internal Revenue Service (IRS) on behalf of the account holder. The withholding rate may be voluntary, or levied by the IRS.
Yield - The annualized rate of return to maturity on a Treasury security.
Zero-Percent Certificate of Indebtedness (Zero-Percent C of I or C of I) - A Treasury security that does not earn any interest. It is intended to be used as a source of funds for traditional Treasury security purchases.