TreasuryDirect Payroll Savings
The Payroll Savings Option in TreasuryDirect
TreasuryDirect offers a 21st century option for payroll savings, using a simple direct deposit (or payroll) deduction that is just like any other direct deposit deduction.
How does the payroll option in TreasuryDirect work?
It's simple...
- You open a TreasuryDirect account.
- You submit a request to your employer for a direct deposit (or payroll) deduction (an instruction sheet is available in TreasuryDirect, under Manage Direct, View My Funding Options).
- Your employer establishes a direct deposit deduction from each pay in the amount you request. Your deduction is used to purchase a Zero-Percent Certificate of Indebtedness (C of I), which does not earn any interest, but is used as a source of funds to purchase savings bonds within your TreasuryDirect account.
- You may buy a savings bond after accumulating a minimum of $25 or a marketable security after accumulating a minimum of $100 in the C of I or by scheduling a purchase in advance. The security is then posted to your TreasuryDirect account.
Why Should I Choose TreasuryDirect instead of Traditional Payroll Savings?
TreasuryDirect is an easy way for you to save on a regular basis by purchasing electronic Treasury securities. With TreasuryDirect:
- You can buy, manage, and redeem Treasury securities online 24/7, all from the convenience of home or work, wherever you have secure Internet access.
- You can establish multiple registrations in one account.
- You can schedule recurring purchases for up to five years in advance.
- Savings bonds purchased through TreasuryDirect are generally added to your account in just one business day.
- When the funds are needed, after the minimum term of ownership has been reached, you can cash part or all of a savings bond or savings bonds. The payment will be deposited to the checking or savings account you choose. Redemption funds should reach your bank or credit union in one business day.
- TreasuryDirect tracks details such as issue date and current value for you.
- Since the savings bonds are electronic, there is no paper to lose, nor do you need to go to your local bank to redeem them.
- You can even set up accounts for minor children, as well as custom accounts for specific purposes such as a vacation, within your TreasuryDirect account.
- TreasuryDirect provides a summary of account activity, including recent purchases, payments, and account balance.
Other Ways to Contribute to Your C of I
In addition to direct deposit deduction from your pay, you can contribute to your C of I from pension funds, annuities, and even your checking or savings account. If you need to add to your C of I balance in order to purchase a savings bond, you can contribute directly to the C of I from your checking or savings account. If you choose to use one of these methods to contribute to your C of I, contact the relevant institution. Also, you can redeem securities in your TreasuryDirect account to the C of I instead of to your bank account.
Find more information about the payroll feature in our TreasuryDirect Payroll Savings FAQs.
