Treasury Notes: How To Buy
You can buy Treasury notes directly from the U.S. Treasury or through a bank, broker, or dealer.
Buying Directly From the U.S. Treasury
To buy a note directly from us, you must have an account in either TreasuryDirect or Legacy Treasury Direct.
To open an account in TreasuryDirect, go to "Open An Account" and supply the requested information. Effective April 2009, TreasuryDirect permits accounts for both individuals and various types of entities including trusts, estates, corporations, partnerships, etc. See Learn More about Entity Accounts for full information on the new registration types.
To open an account in Legacy Treasury Direct, complete and submit the paper form "New Account Request" (PD F 5182). (Download or order the form.) Mail your completed form to the appropriate customer contact center.
Decide How to Bid
You can enter either a noncompetitive bid or a competitive bid.
With a noncompetitive bid, you agree to accept whatever yield is determined at auction. If you bid this way, you are guaranteed to receive the security you want, in the amount you want.
With a competitive bid, you specify the yield you will accept. If you bid this way, you may or may not receive the security you want, and, if you receive it, you may receive it in less than the amount you want. You cannot place a competitive bid directly with us. To bid competitively, you must use a bank, broker, or dealer.
Submit a Bid
How you submit a bid to us depends on whether you use TreasuryDirect or Legacy Treasury Direct.
TreasuryDirect
The bid submission process is completely online. Login to your account and from the "My Accounts" page, click on the BuyDirectSM tab, select Notes, enter the amount you want, the purchase date and the other items requested. Follow the prompts to complete your transaction. The date that the security is issued will be based on the next auction date for the security.
From the BuyDirectSM page, you can set up recurring purchases of securities for up to five years.
From the "My Accounts" page, you can also quickly purchase a security using Purchase Express. With this functionality, you select the type of security and the purchase amount. The system uses the original registration you entered when you set up your account and the primary bank account, and schedules your purchase for the next available auction date.
Legacy Treasury Direct
You can bid by any of three methods:
-
Web
Hours: 8 a.m. to midnight Eastern Time, Monday through Friday, excluding federal holidays. -
Phone
Call 800-722-2678 and choose Option #1 at the main menu.
Hours: 8 a.m. to midnight Eastern Time, Monday through Friday, excluding federal holidays. -
Mail
Complete "Treasury Marketable Securities Tender" (PD F 5381) and mail it to your customer contact center.
(Download or order the form.)
Payments and Receipts
The price that you pay for a note can include either a premium or a discount, and accrued interest. For a full discussion of the price of a security, see Treasury Notes: Rates and Terms.
TreasuryDirect
When you buy a note, we withdraw the purchase price from the source of funds you specify, which could be one of your bank accounts or your Certificate of Indebtedness (C of I). We deposit payments into your bank account or your C of I, whichever you specify.
Legacy Treasury Direct
You pay for a note by any of these methods:
- Automatic withdrawal (if you make your purchase by web or phone, you must pay by automatic withdrawal)
- Personal check
- Certified personal check
- Cashier's check
- Check issued to you by a Federal Reserve Bank
We pay you by direct deposit into the bank account you designate when you open your account in Legacy Treasury Direct.
Buying Through a Bank, Broker, or Dealer
To place a competitive bid, you must use a bank, broker, or dealer. You also can bid noncompetitively using a bank, broker, or dealer. For more information, consult a bank, broker, or dealer.
