What is TreasuryDirect?
treasury direct

TreasuryDirect is a Web-based system that allows investors to establish accounts to purchase, hold, and conduct transactions in Treasury securities online. Currently, you can purchase electronic Series EE and I savings bonds through TreasuryDirect. In the future, Treasury plans to offer other electronic securities, such as Treasury bills and notes, in TreasuryDirect. Paper savings bonds are not sold through TreasuryDirect.

How does this change payroll savings?

TreasuryDirect offers an electronic alternative to the traditional payroll savings plan. You establish your own TreasuryDirect account and, with direct deposit (payroll) deductions that are just like any other direct deposit deduction, purchase a Certificate of Indebtedness (C of I). The C of I is a Treasury security that does not earn any interest and is used as a source of funds to purchase electronic Series EE and/or Series I savings bonds. You then access your account and use the C of I to schedule the purchase of savings bonds you desire.

How does TreasuryDirect work with payroll savings?

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It's simple...

  • You open a TreasuryDirect account.
  • You submit a request to your employer for a direct deposit deduction form .
  • Your employer establishes a direct deposit deduction from your 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 in the C of I or by scheduling a purchase in advance. Savings bonds are then posted to your TreasuryDirect account.

To use TreasuryDirect, do I need to have Internet access and an e-mail account?

Yes, to use TreasuryDirect, you must have Internet access to log in to your TreasuryDirect account and an e-mail address to receive important messages from TreasuryDirect, including the receipt of your account number.

Can I participate in TreasuryDirect without using direct deposit (payroll) deduction?

Absolutely! You can open a TreasuryDirect account and make purchases having TreasuryDirect debit your savings or checking account.

Does a deduction need to be a particular amount?

No, you can request a deduction in any amount; however, your payroll system may have a minimum dollar amount on deductions.

Do my deductions earn interest as soon as they reach my account?

No. When you send payroll deductions to your TreasuryDirect account you are actually purchasing a non-interest bearing Certificate of Indebtedness (C of I). This special C of I is a Treasury security that does not earn any interest, but holds your deductions until you access your account and direct that the C of I be redeemed and the funds used to purchase the electronic Series EE and/or I bonds you want on the date or dates you specify. Recurring purchases may be scheduled up to five years in advance.

What is the smallest denomination bond I can buy in TreasuryDirect?

Electronic savings bonds are not sold by denomination. The minimum amount to purchase a savings bond in TreasuryDirect is $25 and the maximumis $30,000. In between, you can purchase any amount-down to the penny. There is a $30,000 annual limit per series.

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How do I get started with TreasuryDirect?

Open your TreasuryDirect account. Full instructions for setting up the payroll feature can be found in "View My Funding Options" under the Manage Direct tab within your account. It's that simple.

When is the issue date established on a bond I buy in TreasuryDirect?

Bonds purchased in TreasuryDirect are posted to your account one business day after they are purchased. The issue date of the bond is the first day of the month in which the bond is posted. For example, if the purchase is made May 31 and the bond posts on June 1, the issue date is June 1; but if the purchase is made on May 26 and the bond posts on May 27, the issue date is May 1.

What happens if I forget to schedule a purchase?

The money will remain invested in a non-interest bearing C of I until you redeem it to purchase a bond.

What happens if I stop my deduction, but don't have enough available in my account to buy a bond?

You can direct payment of the balance to a designated checking or savings account at your bank or credit union.

What happens if I stop my deduction, but forget to stop scheduled future purchases of bonds?

When an insufficient balance is available to cover the purchase of a bond, the purchase will not take place. TreasuryDirect will notify you by e-mail.


 

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