For Financial Institutions — TreasuryDirect (2024)

FAQs

Is TreasuryDirect safe and legitimate? ›

About TreasuryDirect.gov

Your investments are backed by the full faith and credit of the United States government.

What is TreasuryDirect? TreasuryDirect is a Web-based system that allows investors to establish accounts to purchase, hold, and conduct transactions in Treasury securities online.

Many financial organizations such as banks, depository institutions, credit unions, mortgage institutions, and investment funds and managers use financial institution bonds to protect their monies and properties against employee dishonesty.

Financial institutions now have the option to not cash savings bonds for both non-customers or new customers. Our Secret Service partners recommend that a customer be established for 12 months before cashing bonds at a financial institution.

Securities purchased through TreasuryDirect cannot be sold in the secondary market before they mature. This lack of liquidity could be a disadvantage for investors who may need to access their investment capital before the securities' maturity.

Treasury securities are considered a safe and secure investment option because the full faith and credit of the U.S. government guarantees that interest and principal payments will be paid on time.

Log into your primary TreasuryDirect® account. Click on the ManageDirect tab at the top of the page. Click "Redeem securities" under the Manage My Securities heading. On the Redemption page, choose the radio button beside Payroll Zero-Percent C of I and click "Submit".

Redeeming from TreasuryDirect

If you have not told us to reinvest the money from a matured security, we pay you the value of the security automatically on the day the security matures. You don't have to do anything. We deposit the money in your Certificate of Indebtedness (C of I) or your designated bank account.

TreasuryDirect is free. There are no fees, no matter how much or how little you invest. You may hold both savings bonds and Treasury marketable securities in TreasuryDirect. Your securities in TreasuryDirect are electronic, so you don't have to worry about them getting lost, stolen, or damaged.

A financial institution bond is used to insure banks and other financial institutions against employee dishonesty, burglary, robbery, forgery, and similar crime exposures.

How do I buy institutional bonds? ›

Buying bonds is just as easy as investing in the equity market. Primary market purchases may be made from brokerage firms, banks, bond traders, and brokers, all of which take a commission for facilitating the sale. Bond prices are quoted as a percentage of the face value of the bond, based on $100.

Although fidelity bonds were originally written as three-party surety bonds guaranteeing the honesty of an employee, today's fidelity bonds are two party insurance policies. In addition to being referred to as a fidelity bond, Employee Dishonesty Insurance is sometimes also referred to as: Financial Institution Bond.

TreasuryDirect.gov is the one and only place to electronically buy and redeem U.S. Savings Bonds. We also offer electronic sales and auctions of other U.S.-backed investments to the general public, financial professionals, and state and local governments.

You just bought a security from the U.S. Treasury. Securities are generally issued to your account within two business days of the purchase date for savings bonds or within one week of the auction date for Bills, Notes, Bonds, FRNs, and TIPS.

You can report the interest each year you earn it or when you cash the bond. You will report it on Schedule B of your 1040. You can avoid these taxes by using the money for qualified higher education expenses.

Bonds in TreasuryDirect are safely maintained in your account with the U.S. Treasury. mature or you redeem them, whichever is first. Also, if all conditions are met, using savings bonds to pay for some education expenses offers additional federal tax benefits. Affordable - Save with as little as $25.

Information dealing with the purchase, redemption, replacement, forms, and valuation of Treasury savings bonds and securities is located on the TreasuryDirect.gov website which is managed by the Bureau of the Fiscal Service.

TreasuryDirect is free. There are no fees, no matter how much or how little you invest. You may hold both savings bonds and Treasury marketable securities in TreasuryDirect. Your securities in TreasuryDirect are electronic, so you don't have to worry about them getting lost, stolen, or damaged.