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How is TreasuryDirect changing?How did individuals purchase Treasury marketable securities before TreasuryDirect?
Will the Legacy Treasury Direct system still be available?
How may I bid competitively in a Treasury auction?
Can I still open a Legacy Treasury Direct account?
What marketable securities may I purchase in TreasuryDirect?
What is the minimum and maximum amount I may purchase noncompetitively?
What is a Zero-Percent Certificate of Indebtedness (Zero-Percent C of I or C of I)?
How do I place a bid for marketable securities in TreasuryDirect?
How can I register marketable securities?
Do I receive confirmation of my security purchase?
How do I see the final purchase price of my security after the auction?
Are there any fees for buying and holding marketable securities in TreasuryDirect?
What is the auction schedule for marketable securities?
How far in advance can I schedule a purchase?
What is accrued interest?
How do I receive interest and maturity payments from marketable securities?
Can I sell marketable securities prior to maturity?
May I transfer securities from my Legacy Treasury Direct account into my online TreasuryDirect account?
How do I transfer securities from my broker/dealer account into my TreasuryDirect account?
Can I transfer marketable securities out of my TreasuryDirect account?
May I transfer a partial amount of my marketable security?
How do I request a transfer of marketable securities to another TreasuryDirect account?
How do I know that TreasuryDirect has completed my transfer?
Are there any restrictions when transferring marketable securities?
Where can I go for more information?
How is TreasuryDirect changing?
Beginning with the October 3, 2005, auction of 13 and 26–Week Treasury Bills, TreasuryDirect online account holders are able to submit noncompetitive bids to purchase marketable Treasury Bills, Notes, Bonds, and Treasury Inflation-Protected Securities or TIPS. Previously, only Series I and EE U.S. Savings Bonds have been available to purchase in TreasuryDirect. For the first time, TreasuryDirect account holders are able to purchase and hold savings bonds and marketable securities in a single online account, providing 24/7 convenience.
How did individuals purchase Treasury marketable securities before TreasuryDirect?
Since marketable securities became available through the TreasuryDirect online system, investors can purchase, hold, and manage all their Treasury securities (including savings bonds) in one account, which has a direct relationship with the Treasury Department.
Before TreasuryDirect, investors had only two options for purchasing and holding marketable securities. Marketable securities were (and still are) available through:
- Legacy Treasury Direct, a direct holding system where the investor has a direct relationship with the United States Treasury. Available since 1986, Legacy Treasury Direct predated the Internet and is largely paper dependent, although it does permit certain online transactions, such as purchases and reinvestments, through Electronic Services for Treasury Bills, Notes, and Bonds. (Savings bonds are not available in Legacy Treasury Direct.) In January 2007, we stopped offering 30-year bonds and 20-year TIPS in Legacy Treasury Direct, but they continue to be sold in TreasuryDirect.
- Commercial book-entry, an indirect holding system where securities are held with a financial institution, broker, or dealer. The commercial book-entry system is a multilevel arrangement that involves the Treasury, the Federal Reserve System (acting as Treasury's agent), banks, brokers, dealers, and other financial institutions. So, in the commercial book-entry system, there can be one or more entities between you (the ultimate owner of the security) and Treasury.
Will the Legacy Treasury Direct system still be available?
Legacy Treasury Direct will continue to be available for account holders to purchase and hold marketable securities; however, the ability to enter competitive bids has been discontinued. Also, in January 2007, we stopped offering 30-year bonds and 20-year TIPS in Legacy Treasury Direct, but they continue to be sold in TreasuryDirect. Few Legacy Treasury Direct account holders use the competitive-bidding feature. Account holders continue to be able to make noncompetitive purchases of Bills, Notes, and TIPS (except for the 20-year TIPS).
How may I bid competitively in a Treasury auction?
Beginning with the October 3, 2005 auction, competitive bidding is only available through securities brokers/dealers and financial institutions participating in the commercial book-entry system.
Can I still open a Legacy Treasury Direct account?
Yes. You may still open an account in Legacy Treasury Direct, but you may want to consider opening a more convenient, flexible account in TreasuryDirect. TreasuryDirect accounts offer all of the same securities available in the legacy system, as well as several other securities, such as the 4-week bill, the 30-year bond and the 20-year TIPS, that are not offered for purchase in Legacy Treasury Direct. Also, Treasury Direct has unlimited features to make managing your Treasury securities simple and completely paperless. Note: only individuals can hold accounts in TreasuryDirect at this time.
What marketable securities may I purchase in TreasuryDirect?
TreasuryDirect account holders may purchase 4-, 13-, 26-, and 52-Week Treasury Bills, 2-, 3-, 5-, and 10-Year Treasury Notes, 5-, 10-, and 20-Year TIPS, and 30-Year Treasury Bonds.
What is the minimum and maximum amount I may purchase noncompetitively?
The minimum amount you may invest noncompetitively in a marketable security is $100, with purchases increasing in $100 increments to the maximum of $5 million per security type for each auction. In TreasuryDirect, if you choose your Zero-Percent C of I as the source of funds for your purchase, the maximum purchase limitation does not apply.
What is a Zero-Percent Certificate of Indebtedness (Zero-Percent C of I or C of I)?
The Zero-Percent Certificate of Indebtedness (Zero-Percent C of I or C of I) is a Treasury security that does not earn any interest. It is intended for use as a source of funds in TreasuryDirect for traditional Treasury security purchases.
How do I place a bid for marketable securities in TreasuryDirect?
TreasuryDirect account holders simply go to Buy Direct and request a purchase by selecting the security type/term, amount, and frequency. Because noncompetitive auction bids are automatically accepted, the purchase is made according to the account holder's instructions. On the issue date, the designated financial institution account or Zero-Percent C of I is debited for the purchase price (including any premium and/or accrued interest). Purchase requests are rejected if funds are insufficient to cover the cost of the securities.
How can I register marketable securities?
Currently, the only registrations available for marketable securities in TreasuryDirect are:
- Sole Owner: Only one individual is named as owner.
- Primary Owner (with Secondary Owner): Two individuals' names are recorded for the security in TreasuryDirect, separated by the word "WITH." For example, "John Smith SSN 123-45-6789 WITH Mary Smith SSN 987-65-4321." The primary owner is named first and has the right to transact the security. Upon the death of either the primary or secondary owner, the survivor will be considered the sole owner of the security.
- Beneficiary: Only the owner has transactional rights during his or her lifetime. The beneficiary automatically becomes the sole owner of the security if the original owner predeceases the beneficiary.
Fiduciary (trusts, estates, etc.) and organization registrations are not currently available in TreasuryDirect.
Do I receive confirmation of my security purchase?
Every security purchase in TreasuryDirect includes a special confirmation page for you to view and print for your records, if you wish. Each purchase also receives a unique confirmation number so you may view it after it is issued in your account. There's no paper account statement to keep track of, everything you need is always just a click away in your TreasuryDirect account.
How do I see the final purchase price of my security after the auction?
In TreasuryDirect, go to Current Holdings for the security type you've requested and check Pending Transactions for details like price per $100, premium, discount, and accrued interest. These details are updated in your TreasuryDirect account after 5 p.m. Eastern Time so you're able to determine the final price of the security and ensure you have enough available in your selected source of funds to cover the purchase price. The price of a Note, Bond, or TIPS can be greater than, less than, or equal to its par amount. Treasury Bills are sold at a discount from their par amount.
For detailed information about pricing see Treasury Notes: Rates and Terms, Treasury Bonds: Rates and Terms, TIPS: Rates and Terms, and Treasury Bills: Rates and Terms.
Are there any fees for buying and holding marketable securities in TreasuryDirect?
No. TreasuryDirect charges no fees to purchase or maintain marketable securities, regardless of the amount of holdings. Legacy Treasury Direct charges a $100 annual maintenance fee for holdings greater than $100,000.
What is the auction schedule for marketable securities?
Treasury Bills are scheduled for auction weekly on Mondays and Tuesdays, unless a Federal holiday falls on one of those days. Other Treasury securities are auctioned on varying schedules according to maturity and the Treasury's borrowing needs. The tentative auction schedule is announced quarterly by the Treasury Department and posted on the Treasury website at http://www.treas.gov/offices/domestic-finance/debt-management/auctions/auctions.pdf. A tentative auction schedule is also available in your TreasuryDirect account.
How far in advance can I schedule a purchase?
In TreasuryDirect, purchases can be scheduled up to five years in advance. Future purchases are subject to the availability of the security and the auction schedule determined by Treasury.
What is accrued interest?
Sometimes, when you buy a Note, Bond, or TIPS, you have to pay accrued interest, which is the interest the security earned before we issued the security to you. This occurs when an issue date falls on a weekend or holiday, and is delayed until the next business day or when we offer a reopening of a security for purchase. If you have to pay accrued interest, we pay it back to you in your first semiannual interest payment.
Accrued interest is discussed more completely at Treasury Notes: Rates and Terms, Treasury Bonds: Rates and Terms, and TIPS: Rates and Terms.
How do I receive interest and maturity payments from marketable securities?
In TreasuryDirect, semiannual interest and final maturity payments are sent through the Automated Clearing House (ACH) network to your designated financial institution account. You may also choose your Zero-Percent C of I as your payment destination for interest and/or maturity payments. Interest and maturity payments may be sent to two different locations, depending upon your investment needs.
Can I sell marketable securities prior to maturity?
Treasury does not redeem marketable securities prior to maturity; however, you may sell eligible securities in the secondary market as soon as 45 days after issue. Prior to maturity, you may request the sale of 13-Week, 26-Week, and 52-Week Bills, Notes, Bonds, or TIPS through SellDirect. SellDirect requests are transmitted to the Federal Reserve Bank of Chicago where securities are sold at market price to the highest bidding government securities broker. A $45 fee applies to this service.
May I transfer securities from my Legacy Treasury Direct account into my online TreasuryDirect account?
Yes. To transfer securities from Legacy Treasury Direct to TreasuryDirect, take these steps:
- Open an account in TreasuryDirect. (If you already have an account, you may skip this step.)
NOTE: At this time, only individuals can hold accounts in TreasuryDirect. - Complete the Legacy Treasury Direct form “Security Transfer Request” (PD F 5179). In the form's section 3, check the box for “Transfer to an Established On-line TreasuryDirect Account Number.” (Download or order the form) Your signature on this form must be certified. Your bank may provide this service.
- Mail the form to the Bureau of the Public Debt, at the address shown on the form.
How do I transfer securities from my broker/dealer account into my TreasuryDirect account?
Contact your broker to transfer securities to your TreasuryDirect account. Your broker will require the following delivery information, formatted as shown:
- Receiving bank name – TREASURYDIRECT (All caps, no spaces)
- ABA Number – 051736158
- Your TreasuryDirect account number
Can I transfer marketable securities out of my TreasuryDirect account?
Yes. However, securities purchased through TreasuryDirect are not eligible for transfer until 45 days after the issue date. Securities may be transferred to another TreasuryDirect account or to a broker/dealer account. Securities transferred into TreasuryDirect from an outside account are not restricted by this Original Issue Holding Period. External transfers to a broker/dealer account may be requested for individual or multiple securities. We recommend you verify the financial institution's routing number, name, and special handling instructions prior to requesting the transfer.
NOTE: Certain transfers require you to submit a paper form. When a form is required, a message will display with a link to the form needed for your transaction.
May I transfer a partial amount of my marketable security in TreasuryDirect?
Yes. You may choose to transfer a portion or the full amount of a security for a single transfer in $100 increments. The full amount of each security must be transferred to a single recipient when you select multiple securities for transfer.
NOTE: Certain transfers require you to submit a paper form. When a form is required, a message will display with a link to the form needed for your transaction.
How do I request a transfer of marketable securities to another TreasuryDirect account?
Go to Manage Direct > Transfer Securities to request a partial or full transfer of a marketable security to another TreasuryDirect account. You will need to provide the recipient's Social Security Number and TreasuryDirect account number. A transfer may only be made to another Primary, a Custom, or a Minor Linked account.
NOTE: Certain transfers require you to submit a paper form. When a form is required, a message will display with a link to the form needed for your transaction.
How do I know that TreasuryDirect has completed my transfer?
TreasuryDirect assigns a confirmation number for each security to be transferred. Check the Security History of your TreasuryDirect account. After the transfer has been completed, the transaction history will contain a record stating that the transfer has been sent.
NOTE: Certain transfers require you to submit a paper form. When a form is required, a message will display with a link to the form needed for your transaction.
Are there any restrictions when transferring marketable securities?
In order for TreasuryDirect to process your transactions more effectively, we must apply restrictions to certain actions performed in your account. Treasury also enforces holding periods for marketable securities as a precaution, due to their flexible transactional capabilities. For more information, see "Learn more about Transaction Restrictions" and "Learn More about Marketable Security Transfers" in your TreasuryDirect account.
Where can I go for more information?
Complete information on establishing TreasuryDirect accounts and purchasing marketable securities and electronic savings bonds can be found in the "Individual/Personal Investing" section of www.treasurydirect.gov.